Acquisition of Spanish Burberry Licensee for £132m

Great Universal Stores PLC
3 July 2000

                   ACQUISITION OF BURBERRY LICENSEE IN SPAIN
                               FOR £132 MILLION
                                       
                                       
The  Great  Universal  Stores  PLC (GUS) today  announces  that  its  Burberry
division has acquired 100% of the equity of Burberry (Spain) S.A., its Spanish
licensee.  The purchase price is Euro 209 million (£132 million) together with
the  assumption of Euro 8 million (£5 million) of debt, with a further element
of  deferred  consideration of up to Euro 42 million (£26  million)  dependent
upon performance.

Burberry is one of Spain's leading apparel brands consisting of men's, women's
and  children's  clothing and accessory products.  Thomas  Burberry  has  also
recently  been introduced, targeted to a younger, more casual consumer.   With
sales  at  a  retail value of approximately £260 million, Spain  is  currently
Burberry's second largest country of operation behind Japan and the largest in
terms  of sales per capita.  With this acquisition Burberry captures  more  of
the value associated with its brand.

Burberry  Spain  is  headquartered  in Barcelona  and  has  approximately  800
employees.  Established 35 years ago, the Company was founded and is currently
run by the Mora family who will continue to manage the business in the future.
For  the  year ending March 31, 2000 using the average exchange rate  for  the
year  (£  = Euro 1.566), Burberry Spain had sales of £127 million, a  proforma
EBIT  of  £21 million and shareholders equity at 31 March 2000 of £50 million.
Over  the last five years, sales have grown on average by 20% pa and  EBIT  by
25% pa.

Rose  Marie  Bravo, Chief Executive of Burberry, stated: 'We are delighted  to
work in total collaboration with this most successful partner and look forward
to  continuing  our brand development in merchandising and  marketing  in  the
vibrant  Spanish  market.   This  combination  will  strengthen  the  Burberry
presence in the continental European market'.

Victor   Barnett,   Chairman  of  Burberry,  stated:  'This   development   is
strategically  very  important to Burberry and  is  expected  to  be  earnings
enhancing  with  immediate effect.  We are very fortunate that Burberry  Spain
has  a  very  strong and talented management team, who have made a  long  term
commitment  to  continue with the business.  Importantly the acquisition  will
enable us to better develop a consistent offer across Europe'.

John  Peace, Group Chief Executive of GUS, said: 'The acquisition of  Burberry
Spain  is  another  step towards the reorganisation of  Burberry  by  its  new
management  team as a truly global company.  Building on Burberry's successful
new  ranges, as well as the new Japanese license agreement which is now adding
greatly  to profits, this acquisition in Spain further enhances the  value  of
Burberry for GUS shareholders'.

Enquiries:

GUS       David Tyler         Finance Director         020 7495 0070
          Fay Dodds           Investor Relations

Finsbury  Rupert Younger                               020 7251 3801
          Tim Grey