Trading Statement

6 January 2011

THEO FENNELL PLC

("Theo Fennell" or "the Company")

Christmas Trading Statement

The Company had an encouraging start to the Christmas period with like-for-like retail sales up 22% in the first week of December. The adverse weather conditions significantly reduced footfall to the stores from high end UK clients and International clients, many of whom were unable to arrive in London for the Christmas period. Like-for-like sales for the month of December were therefore down 7%.

Sales of the Bees, Spangle and Keys collections were encouraging however sales of the higher end one off pieces were lower than anticipated due to the shortfall of International clients in London during the Christmas period.

Alias, the new silver jewellery line, was soft launched in November. We are very encouraged by the early sales. The product range will be expanded in early Spring 2011 and the distribution will be extended both in the UK and overseas. In the first six weeks since its launch we have sold over 2,000 units.

The website was also soft launched in November and early sales show the future opportunity of this new business channel, particularly for the sales of the Alias silver jewellery line.

The effect of the poor weather conditions on retail sales in December will invariably have a knock on effect on the full year results at the end of March and we anticipate these will be below market expectations.