Interim Results

Brown (N.) Group PLC
12 October 2000

                                       
                         Interim Results Announcement
                          26 weeks to 26 August 2000

N Brown Group plc, the Manchester based direct catalogue home shopping and
fulfilment services company, today announces its interim results for the 26
weeks to 26 August 2000.

The group continues to report a strong performance.  Turnover growth in the
core division of home shopping was ahead of the retail sector, reflecting
increased customer spending and retention, and supported by a wider product
range.

Our fulfilment services division has been further enhanced with the
acquisition of Eunite, the e-convergence company providing multi-channel
solutions and complementing Zendor.com's offer.


Highlights of the results include:

-  Turnover £185.9m (1999 : £172.5m)                up 7.8% 

-  Operating profit £24.7m (1999 : £23.0m)          up 7.5% 

-  Profit before tax (before Zendor.com costs) 
   £23.1m (1999 : £21.4m)                           up 7.9% 

-  Earnings per share 5.55p (1999 : 5.16p)*         up 7.6% 

-  Interim dividend per share 1.45p (1999 :1.35p)*  up 7.4%            
                                   
   * 1999 figures restated to reflect the recent 1 for 1 bonus issue of shares


Sir David Alliance CBE, Chairman, said:

'I am pleased to report a good set of results, particularly in the light of a
difficult retail climate.

'Zendor.com is performing to expectations.  We have a number of quality
prospects which will be announced according to the client's plans.

'We are continuing to launch initiatives which will drive growth in our core
businesses, as well as developing other opportunities leading to further
progress this year and next.'


For further information please contact:

N Brown Group plc
Sir David Alliance CBE, Chairman
Jim Martin, Chief Executive                      On the day:  020 7457 2345 
Tim Kowalski, Finance Director                   Thereafter:  0161 236 8256

Neil Garnett / Luisa Winnett, Gavin Anderson & Company        020 7457 2345



CHAIRMAN'S STATEMENT

I am delighted to report continued strong growth for the six months to August
2000 in a challenging retail climate.  Turnover is up 7.8% to £185.9m and,
before absorbing Zendor.com's first half costs of £0.4m, profit before tax has
increased by 7.9% to £23.1m.  Earnings per share have increased by 7.6% to
5.55 pence and the board has declared an interim dividend of 1.45 pence per
share, up by 7.4%.


Home Shopping

Home shopping turnover is up by 7.8%, well ahead of the retail sector as a
whole.  Much of this is due to the continued support and loyalty of our
existing established customers.   Turnover from these customers increased by
8.5%, with a 4.5% rise in the number who ordered to 1.8 million and a 4%
increase in their average spending. This growth in customer spending is
particularly satisfying against a background of price deflation, which was
around 4% in the period.

An important part of our growth strategy is the development of our household
and electrical products, sales of which have grown by 25% to £42m, now
representing 23% of home shopping turnover.   We have increased the frequency
as well as the number of customers contacted, using the Home Essentials
brochure and a new publication, Inspirational Homes, as well as devoting more
space to these items in our main catalogues.  Product ranges have been widened
and customers are being offered more flexible credit propositions.

Clothing and footwear sales volumes continue to be strong but selling prices
are generally lower than last year, a situation which is reflected in the
retail sector.  Despite this, ladies clothing sales are ahead by 5% to £108m
with demand favouring younger, informal separates.  A new brochure, Naturally
Close, containing a range of lingerie, nightwear and swimwear was successfully
launched this season. Sales of menswear and footwear have declined by 3% in
spite of increased volumes.  This reflects the general pressure on pricing in
these product groups.

Our main catalogues are well positioned demographically to take advantage of
an ageing and more affluent population.  Turnover from customers in their mid
forties through to early sixties has advanced by 8% to £130m.  We have also
invested in the younger market of consumers in their thirties and forties and
sales to these customers are up by 9% to £37m.

Due to better control of stock, gross margins are up by 0.6% to 56.6%, despite
the increase in turnover of the traditionally lower margin ranges of household
and electrical products.  We are implementing further stock forecasting
enhancements which will allow us to build on these gains next year and beyond.


Financial Services

Operating profit from the activities of First Financial, our financial
services business, is up from £0.6m last year to £0.8m.  This is a
commission-based financial intermediary, offering unsecured loans, insurance
and other products to home shopping customers.  Our enhanced financial
services database now enables us to segment and target customers with greater
accuracy, offering appropriate and timely financial products.


Fulfilment Services

Last year we recognised the strategic importance of fulfilment services when
we announced the creation of a new division.  This business offers complete
fulfilment services to new and existing distance shopping companies operating
in either the conventional catalogue or internet channels.  The majority of
these services already exists within the group and we are progressively
strengthening the proposition by acquisition, joint venture and organic
developments.

The marketing arm for this division is Zendor.com, 75% owned by the group and
25% owned by a division of GE.  Zendor.com's dedicated management team has
been involved in the lengthy process of helping clients to create their
distance shopping strategies and this has resulted in contracts with New Look
and River Island, the former having started recently with the launch of their
first catalogues.  We are in advanced discussions with a number of other
leading organisations and are on track to achieve our overall plan. 
Announcements will be made according to the timing preference of each new
client.  There was a loss for Zendor of £0.4m in the first half and we expect
a similar result in the second half as revenues begin to build.  The benefits
of Zendor.com will be seen until next year. 

In August we announced the acquisition of a 60% controlling interest in
Eunite, an e-convergence company and leading provider of multi-channel
e-commerce solutions with access through the internet, mobile phones and
interactive television.  The remaining 40% is intended to be acquired over the
next three years at a price linked to challenging profit targets.  This
acquisition adds to Zendor.com's fulfilment strengths, furthering its ability
to provide clients with an end-to-end service, as well as providing specialist
support in the development of our existing and new home shopping channels.

We are also actively pursuing other investment opportunities which we believe
will further enhance our fulfilment proposition to potential clients.


Balance Sheet

Net assets increased by 15.8% to £184.8m.  Gearing has increased from 28% to
33% due to £9m capital expenditure, increases in working capital and the
acquisition of Eunite.  The net cash outflow before financing this year was
£14.7m against £1.6m last year.

The main items of capital expenditure are an additional warehouse in Rochdale,
Lancashire, enhancements to warehouse sorting machines and the initial
payments for the second phase of the high bay warehouse extension which will
become operational next year.  These additions are necessary for both organic
expansion and Zendor.com requirements. Interest bearing debtors increased by
9% to £194m and stocks were up by 7% to £36m.


Prospects

Despite the continuing highly competitive retail market, the second half began
with turnover for the first two weeks up by 8%.  Sales were affected to a
small extent by the fuel crisis but we expect to recoup this by the year end.

We are continuing to launch initiatives which will drive growth in our core
businesses, as well as developing other opportunities leading to further
progress this year and next.  We have taken steps to reduce costs which will
progressively contribute, including a blend of overhead sourcing gains and a
restructuring of catalogues and brochures.  We expect the deflationary
pressure on selling prices to begin to ease next year, improving operating
margins.

On behalf of the board, my sincere thanks to staff in all parts of the
business for their continued outstanding contribution.


Sir David Alliance, CBE
12 October 2000



N Brown Group plc - Interim Results
GROUP PROFIT AND LOSS ACCOUNT (Unaudited)

                             26 weeks to         26 weeks to      52 weeks to
                             26 Aug 2000         28 Aug 1999      26 Feb 2000
                                   £'000               £'000            £'000
                   Note                                                       
 
                                                                              
 
Turnover              1          185,938             172,506          354,733
                                 =======             =======          =======
                                                                              
 
Operating profit      2           24,748              23,005           51,208
                                                                              
 
Profit on partial 
sale of subsidiary
undertaking                            -                   -            3,802

Share of (loss)/
profit of associated
undertakings                        (141)                 18             (132)

Income from 
listed investments                    22                  23               53

Interest payable                  (1,967)             (1,668)          (3,564)
                            ------------        ------------     ------------
Profit on ordinary 
activities before 
taxation                          22,662              21,378           51,367

Taxation on profit 
on ordinary 
activities           6            (6,731)             (6,498)         (14,366)
                            ------------        ------------     ------------
Profit on ordinary                                                            
activities after
taxation                          15,931              14,880           37,001
                                                                            
Equity minority  
interests                            166                  14              115
                            ------------        ------------     ------------
Profit for the
financial period                  16,097              14,894           37,116
                                                                              
Dividends             7           (4,214)             (3,916)         (13,187)
                            ------------        ------------      -----------
Retained profit                   11,883              10,978           23,929
                                 =======             =======          =======
Earnings per share    4             5.55p               5.16p           12.85p
                            ------------        ------------      -----------
Diluted earnings      
per share             4             5.50p               5.12p           12.72p
                            ------------        ------------      -----------
Dividends per share   4, 7          1.45p               1.35p            4.55p
                            ------------        ------------      -----------




N Brown Group plc - Interim Results
GROUP BALANCE SHEET - (Unaudited)

                                  At                    At                 At
                         26 Aug 2000           28 Aug 1999        26 Feb 2000
                               £'000                 £'000              £'000
Fixed assets:                                                                 
Intangible assets              9,370                 2,007              2,885
Tangible assets               65,920                59,744             62,758
Investments                    3,431                 3,641              3,199
                        ------------          ------------       ------------
                              78,721                65,392             68,842
                        ------------          ------------       ------------
Current assets:                                                               
Stocks                        35,518                33,081             35,467
Debtors                      210,648               188,927            202,806
Cash at bank                   
and in hand                    2,186                 3,580              5,083 
                        ------------          ------------       ------------
                             248,352               225,588            243,356
                        ------------          ------------       ------------
Creditors:                                                                    
Amounts falling
due within one year          (79,257)              (91,509)           (88,471)
                        ------------          ------------       ------------
Net current assets           169,095               134,079            154,885
                        ------------          ------------       ------------
                                                                              
 
Total assets less            
current liabilities          247,816               199,471            223,727
                                                                        
Creditors:                                                                    
Amounts falling due                                                           
after more than one year     (59,719)              (37,583)           (47,941)
                                                                              
Provisions for              
liabilities and charges       (3,253)               (2,270)            (3,253)
                        ------------          ------------        ------------

Net assets                   184,844               159,618            172,533
                             =======               =======            =======
Capital and reserves:                                                         
Called up share capital       29,278                14,616             14,634
Share premium account          4,335                17,923             18,714
Revaluation reserve            1,661                 1,720              1,511
Profit and loss account      149,851               125,624            138,103
                        ------------          ------------       ------------
Equity shareholders' funds   185,125               159,883            172,962

Equity minority interests       (281)                 (265)              (429)
                        ------------          ------------       ------------
Capital employed             184,844               159,618            172,533
                             =======               =======            =======
                                                                              
Gearing                          33%                   28%                 26%



N Brown Group plc - Interim Results
GROUP CASH FLOW STATEMENT (Unaudited)

                         26 weeks to           26 weeks to         52 weeks to
                         26 Aug 2000           28 Aug 1999         26 Feb 2000
                               £'000                 £'000               £'000
Operating activities:

Operating profit              24,748                23,005             51,208

(Increase)/decrease 
in stocks                        (39)                  592             (2,117)

Increase in debtors           (6,867)               (8,914)           (22,825)

(Decrease)/increase
in creditors                  (9,997)               (4,062)             1,283

Depreciation (net of 
profit on disposals)           5,662                 4,868             10,158

Goodwill amortisation             90                    49                116

Profit on sale of investments      -                   (64)              (358)
                        ------------           ------------       ------------
                                                                              
 
Net cash inflow 
from operating activities      13,597                15,474             37,465
                                                                              
Returns on investments                                                        
and servicing of
finance                       (2,077)               (1,489)            (3,412)
                                                                          
Taxation paid                 (3,110)               (1,583)           (14,080)
                                                                              
Capital expenditure and
financing activities          (9,377)               (5,723)           (13,242)
                                                                        
Acquisitions and disposals    (4,432)                 (157)             2,998
                                                                              
Equity dividends paid         (9,277)               (8,367)           (12,270)
                       ------------          ------------        ------------
                                                                           
Net cash outflow before                                                       
management of liquid       
resources and financing      (14,676)               (1,845)            (2,541)
                                                                              
Management of                    
liquid resources                   -                   214                508
                                                                              
Financing                     11,940                   945              2,677
                        ------------          ------------        ------------
(Decrease)/increase         
in cash                       (2,736)                 (686)               644 
                        ------------          ------------        ------------




N Brown Group plc - Interim Results
NOTES TO THE ACCOUNTS (Unaudited)

                         26 weeks to           26 weeks to         52 weeks to
                         26 Aug 2000           28 Aug 1999         26 Feb 2000
                               £'000                 £'000               £'000

1. Analysis of turnover                                                       
     
   Home shopping             185,932               172,506            354,733
   Fulfilment services             
   - Zendor.com                    6                     -                 -  
                       -------------          ------------        -----------

                             185,938               172,506            354,733
                             =======               =======            =======
                                                                              
 
2.  Analysis of                                                               
    operating profit
                                                                              
    Home shopping             25,502                23,358             51,957
    Fulfilment services         
    - Zendor.com                (399)                    -                  -
    Central administration      
    costs                       (355)                 (353)              (749)
                         -----------          ------------        -----------
                              24,748                23,005             51,208
                             =======               =======            =======


3.  The interim accounts have been prepared in accordance with the
    accounting policies set out in the Annual Report and Accounts for 
    the 52 weeks ended 26 February 2000 and were approved by the board of     
    directors on 12 October 2000.

4.  The calculation of earnings per share is based on the profit for the
    financial period and the weighted average number of shares in issue 
    during the period of 289,854,000 (1999, 288,496,000).  For diluted        
    earnings per share, the weighted average number of shares of 292,687,000  
   (1999,290,768,000) has been calculated after adjusting for the potential   
    dilution of outstanding share options.

    The prior period comparatives for earnings per share and dividends per
    share have been restated to reflect the one-for-one bonus issue of shares
    on 7 July 2000 by way of capitalisation of a proportion of the share
    premium account.

5.  On 12 August 2000, the group acquired 60% of the issued ordinary
    share capital of Eunite Limited for a consideration of £6,911,000.  
    This acquisition is not considered to be significant in relation to the
    reporting requirements of FRS3.

6.  The taxation charge for the 26 weeks ended 26 August 2000 is based on
    the estimated effective tax rate for the full year.

7.  The interim dividend of 1.45p per ordinary share will be paid on 5
    January 2001 to shareholders on the register at the close of business on 1
    December 2000.

8.  The figures for the 52 weeks ended 26 February 2000 have been extracted   
    from the statutory accounts which have been filed with the Registrar of   
    Companies.  The auditors' report on those accounts was unqualified and did
    not contain any statement under section 237 of the Companies Act 1985.

9.  It is expected that the interim report for the 26 weeks ended 26 August   
    2000 will be posted to shareholders on 16 October 2000.