Disposal, etc.

Great Universal Stores PLC
01 August 2000


                                       
                SALE OF HIGHWAY VEHICLE MANAGEMENT & UPDATE ON
                           GENERAL GUARANTEE FINANCE
                                       

The  Great Universal Stores P.L.C. (GUS) announces today that it has sold  its
vehicle  contract hire business, Highway Vehicle Management, to First National
Group for approximately £170m in cash.  On 31 July, Highway Vehicle Management
had   a   contract   hire  fleet  of  approximately  18,000  vehicles.    This
consideration  includes  a sum for goodwill.  The sale  will  have  a  neutral
effect on GUS' future earnings.

This  initiative is the latest development in the Group's programme  to  focus
on  its key businesses and to divest operations where full ownership no longer
provides maximum value for shareholders.

GUS  has  also  received  offers for General Guarantee  Finance  (GGF),  which
provides asset finance for the purchase of vehicles to consumers and small  to
medium sized businesses.  However, after careful consideration GUS has decided
that  these  do not adequately reflect the true value of the business.   Given
that  GGF  is  not  key  to  GUS'  future plans,  GUS  believes  that  maximum
shareholder  value  will  be  achieved by closing  GGF  to  new  business  and
implementing an orderly run-off of advances now in place.

A  detailed  plan has been prepared to manage the wind-down of  the  business.
The  majority  of  the cash held on GGF's books is expected  to  be  collected
within eighteen months, although the full wind-down of the business will  take
over three years.  The business employs approximately 600 people and they  are
being consulted on their future employment prospects.  The plan also pays full
regard  to the interests of noteholders to the securitisation issues  made  by
GGF.

On  31  July 2000, GGF's outstanding advances, net of provisions, amounted  to
about  £1,120m.  £880m  of these advances are funded by securitisation debt.
The balance is funded by borrowings from GUS and by GGF's equity.

In the year to March 2000, the operating profit of GGF after funding costs was
£24m.   GUS  expects  that income earned by GGF during its wind-down  will  at
least match the costs of closure.

John Peace, Chief Executive of GUS, commented:

'Since  January  we  have taken rapid action to focus the  Group  on  its  key
businesses  and deliver profitable long term growth. We are pleased  with  the
price  achieved for Highway and that this business is now in secure hands  for
the  future with the First National Group.  The decision to wind down  General
Guarantee  was  not  an  easy  one  to make.   However,  after  examining  the
alternatives closely, we have satisfied ourselves that this course  of  action
is in the best interest of GUS.'


Enquiries:

GUS            Tel:[phone]

               John Peace     Chief Executive
               David Tyler    Finance Director
               Fay Dodds      Investor Relations

Finsbury       Tel: [phone]

               Rupert Younger
               Timothy Grey