Results of Invitation and issue of new Notes

PR 72/10

FOR IMMEDIATE RELEASE 23 July 2010

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.

DSG international plc Results of Invitation and issue of new Notes

DSG international plc (the "Company" or "DSGi"), one of Europe's leading specialist electrical retailers, announces the following today:-

(a) the Company has conditionally accepted tenders to repurchase £140,000,000 (the "Maximum Acceptance Amount") in nominal amount of its existing £300,000,000 6.125% guaranteed bonds due November 2012 (ISIN: XS0157632562 the "Existing Bonds"), at a price of £1,015 per £1,000 principal amount of the Existing Bonds plus accrued interest, with settlement expected to take place on 2 August 2010 (the "Invitation"). As a total of approximately £198,000,000 of Existing Bonds were validly tendered for repurchase to the Company, validly tendered Existing Bonds will be accepted for repurchase scaled by a pro-ration factor of approximately 70.7 per cent;

(b) the Company has today priced a new issue of £150,000,000 8.75% guaranteed notes due 3 August 2015 (ISIN: XS0528872830 the "New Notes") at an issue price of 99.007 per cent of the principal amount of the New Notes. Settlement is expected to be on 30 July 2010. The proceeds will be used to finance the Invitation referred to above; and

(c) as a consequence of the above, on completion of the Invitation and the issue of New Notes, the final maturity date of the group's £360m revolving credit facility (announced on 13 May 2010) will extend from August 2012 to August 2013.

Following completion of these successful transactions the Group will have achieved its objective of extending its debt maturity profile.

The Invitation was made on the terms and subject to the conditions contained in the tender offer memorandum dated 15 July 2010 (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 22 July 2010 at 4.00 p.m. London time. 

END

The Company

Information on DSG international plc is available at http://www.dsgiplc.com

Barclays Bank PLC, BNP Paribas, Citigroup Global Markets Limited, HSBC Bank plc and The Royal Bank of Scotland plc are acting as Dealer Managers for the Invitation and 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: