Transaction in Own Shares

HOME RETAIL GROUP PLC

(the "Company")

Transaction in own shares

The Company announces that, pursuant to the previously announced share buy-back programme, it has purchased Ordinary shares of 10p each as follows:

Date of purchase: 16 July 2010

Number of Ordinary shares purchased: 200,000

Highest price paid per share: 236.30p

Lowest price paid per share: 230.50p

The purchase, including stamp duty and other transaction costs, represented an average price of 233.66 pence per share and £468,011 in total; this has been funded from Group cash resources. The purchased shares will be cancelled.

Following the purchase of these shares, the number of Ordinary shares with voting rights in issue will be 844,100,001.

Gordon Bentley

Secretary

16 July 2010