Trading Statement

12 January 2012

THEO FENNELL PLC

("Theo Fennell" or "the Company")

Christmas Trading Statement

The Board of Theo Fennell PLC, the AIM listed jeweller, today announces Christmas trading update.

Christmas Trading

The Group experienced mixed Christmas trading due to a depressed UK consumer market. Sales at the Theo Fennell flagship and City stores were up versus the prior year However sales from Theo Fennell's other outlets were below the prior year. This was particularly disappointing given they had traded well during the first 8 months of our financial year to the end of November.

Sales in the five weeks for the month of December 2011 were 11% below 2010.

2012 Strategy

The focus for the coming year will be on increasing sales both in the UK and internationally as well as developing Alias and our website. We believe that the brand has hardly been exploited thus far and has great potential to expand into new International markets given our unique design-led product and the number of significant markets the brand has yet to penetrate. Additionally we will continue to look to develop our wholesale network over the next 12 months.

Financial

As a result of weak Christmas trading and the significant investment the Company has made in the year, particularly the launch of Alias and the website, we expect to make a loss for the year ended 31 March 2012.

Given the continued uncertain economic environment expected in 2012 the Company is in the process of an in depth restructuring of its cost base to ensure that the business will achieve an improved performance.