Trading Statement

7.00am, 12 May 2011

DIXONS RETAIL PLC

Full year trading statement

Dixons Retail plc, Europe's leading specialist electrical retailer and services company, today announces trading for the 28 and 52 weeks ended 30 April 2011.

·; Underlying Group total and like for like sales were down 2% in the full year and down 4% in the second half

·; Businesses performing ahead of their markets, particularly in the UK, Nordics, Italy and Greece

·; 60 Megastores now open across the Group with average annual sales of £20million

·; Renewal & Transformation plan continues to improve the business for customers:-

·; New format stores delivering consistent gross profit uplifts across the Group

·; Delivered £50 million of cost savings in the full year

·; Launched new customer services brand KNOWHOW

·; Ongoing shift to multi-channel - pure play e-commerce sales down 9% while multi-channel internet sales were up by 12% across the Group in the full year

·; Group Gross margins were flat in the second half, with gross margins in the full year up 0.1%

·; Underlying Group profit before tax expected to be approximately £85million, in line with previous guidance

·; Year end net debt expected to be approximately £220 million

John Browett, Chief Executive, commented:

"Market conditions have been challenging in many of our markets this year. Our businesses have responded to our customers needs enabling them to improve their market positions, particularly in the UK, Nordics, Greece and Italy. Our focus on Value, Choice and particularly on Service have been at the heart of this delivery.

With challenging economic headwinds continuing for many of our customers, we remain cautious on the outlook for the year ahead. Having had a strong World Cup performance as well as the exclusivity of the iPad last year, we have tough comparables ahead. However, through our Renewal & Transformation plans, our businesses are well placed to emerge from the current weak consumer environments ahead of our competitors.

Having made further good progress on the Renewal & Transformation plan, we continue to deliver significant improvements for our customers, notably this year through the launch of our service brand KNOWHOW, but also through our improved shopping trip and refitting of stores, particularly in the UK. We will continue to lead the market in delivering a better shopping trip for customers and stronger business performance for shareholders."

Dixons Retail plc will announce preliminary results for the 52 weeks ended 30 April 2011 on 23 June 2011.

- Ends -

For further information

David Lloyd-Seed, Group Communications Director, Dixons Retail 01727 205065

Mark Webb, Head of Media Relations, Dixons Retail 01727 205019

Laura Cummings

Zoe Bird Brunswick 020 7404 5959

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

NOTES:

1) Like for like sales are calculated based on stores that have been open for a full financial year both at the beginning and end of the financial period and are calculated using constant exchange rates. Customer support agreement sales are excluded from all UK like for like calculations. Operations that are subject to closure have sales excluded as of the announcement date. Stores subject to a refurbishment are excluded during the period of refurbishment.

2) UK & Ireland comprises Currys, CurrysDigital, Dixons Travel, PC World, operations in Ireland, DSGi Business and KNOWHOWTM. Like for like sales exclude DSGi Business and KNOWHOWTM.

3) Nordics comprises the ElkjØp group and Dixons Travel Denmark.

4) Other International comprises Greece (Kotsovolos), Italy (UniEuro, PC City Italy store in store and Dixons Travel Italy), the Czech Republic (ElectroWorld), Slovakia (ElectroWorld) and Turkey (ElectroWorld).

5) e-commerce division comprises Dixons.co.uk and PIXmania.

6) Movements in the financial position, including levels of borrowings, of the Group since the last balance sheet date are reflective of the trading performance and statements outlined above. Other than this, there have been no significant changes in the financial position of the Group.

7) Certain statements made in this announcement are forward looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable law, regulations or accounting standards, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.