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: 7 December 2010

Number of Ordinary shares purchased: 100,000

Highest price paid per share: 206.70p

Lowest price paid per share: 204.60p

The purchase, including stamp duty and other transaction costs, represented an average price of 205.55 pence per share and £205,862 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 819,262,501.

Gordon Bentley

Secretary

7 December 2010