Result of Tender Offer

18 September 2012

THESE MATERIALS DO NOT CONSTITUTE OR FORM A PART OF ANY OFFER OR SOLICITATION TO PURCHASE OR SUBSCRIBE FOR SECURITIES IN THE UNITED STATES. THE NOTES MENTIONED HEREIN HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT").

THE NOTES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PERSONS (AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFER OF SECURITIES IN THE UNITED STATES.

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS.

Dixons Retail plcIssue of New Notes and Results of Invitation

Dixons Retail plc (the "Company"), one of Europe's leading specialist multichannel electrical retailing and services companies, announces the following:

(a) the Company has on 11 September 2012 priced a new issue of £150,000,000 8.75 per cent. guaranteed notes due 2017 (ISIN: XS0804232337) (the "New Notes") at an issue price of 8.75 per cent. of the principal amount of the New Notes. Settlement is expected to take place on 19 September 2012. The proceeds will be used to finance the purchase of the Existing 2015 Notes pursuant to the Invitation and for general corporate purposes; and

(b) the Company has accepted tenders to repurchase:

(i) £49,439,000 in aggregate principal amount of its existing £150,000,000 8.75 per cent. Guaranteed Notes due 3 August 2015 (ISIN: XS0528872830) (the "Existing 2015 Notes") at a price of £1,050 per £1,000 principal amount of the Existing 2015 Notes (of which £100,561,000 will be outstanding following the repurchase) which will be purchased using, and conditional upon the receipt of, the proceeds from the issue of the New Notes (as defined above); and

(ii) £15,552,000 in aggregate principal amount of its existing £300,000,000 6.125 per cent. Guaranteed Bonds due 15 November 2012 (ISIN: XS0157632562) (the "Existing 2012 Notes") at a price of £1,004 per £1,000 principal amount of the Existing 2012 Notes using the Company's existing cash resources. £144,448,000 of the Existing 2012 Notes will be outstanding following the purchase and are due for redemption by the Company on 15 November 2012,

in each case, plus accrued interest to the Settlement Date (the "Invitation").Settlement is expected to take place on 20 September 2012.

The Invitation was made on the terms and subject to the conditions contained in the tender offer memorandum dated 10 September 2012 (the "Tender Offer Memorandum") including the offer and distribution restrictions contained therein.

Capitalised terms used but not otherwise defined in this announcement shall have the meaning given to them in the Tender Offer Memorandum. The Invitation expired on 17 September 2012 at 4.00 p.m. London time.

END

The Company

Information on Dixons Retail plc is available at http://www.dixonsretail.com

The Royal Bank of Scotland plc, HSBC Bank plc, Citigroup Global Markets Limited, BNP Paribas and Barclays Bank PLC are acting as Dealer Managers for the Invitation. The Royal Bank of Scotland plc, HSBC Bank plc, DNB Markets, a part of DNB Bank ASA, Citigroup Global Markets Limited, BNP Paribas and Barclays Bank PLC are acting as Bookrunners for the offering of the New Notes. Lucid Issuer Services Limited is acting as Tender Agent.

This notice does not constitute an offer to purchase any securities or a solicitation of an offer to sell any securities.

Dealer Manager Contacts:

The Royal Bank of Scotland plc135 BishopsgateLondon EC2M 3UR

Telephone: +44 20 7085 4634Attention: Liability Management GroupEmail: [email protected]

HSBC Bank plc8 Canada SquareLondon E14 5HQ

Telephone: +44 20 7992 6237Attention: Liability Management GroupEmail: [email protected]

Citigroup Global Markets LimitedCitigroup CentreCanada SquareCanary WharfLondon E14 5LB

Telephone: +44 20 7986 8969Attention: Liability Management GroupEmail: [email protected]

BNP Paribas10 Harewood AvenueLondon NW1 6AA

Telephone: +44 20 7595 8668Attention: Liability Management GroupEmail: [email protected]

Barclays Bank PLC5 The North ColonnadeCanary WharfLondon E14 4BB

Telephone: +44 20 7773 8990Attention: Liability Management GroupEmail: [email protected]

Tender Agent:

Lucid Issuer Services LimitedLeroy House436 Essex RoadLondon N1 3QP

Telephone: +44 20 7704 0880Attention: Paul Kamminga/David ShilsonEmail: [email protected]