Announcement of Offer Price

Halfords Group PLC
03 June 2004


3 June 2004



  Not for release, publication or distribution in, or into, the United States,
                           Canada, Australia or Japan


                              HALFORDS GROUP PLC

                ANNOUNCEMENT OF OFFER PRICE AT 260p PER SHARE


Halfords Group Plc ('Halfords' or the 'Company'), the UK's leading retailer by
turnover of car maintenance, car enhancement, travel solutions and cycling
products, today announces the successful pricing of its initial public offering
to institutional investors (the 'Global Offer').



  • Offer price set at 260p per ordinary share



  • Based on the above offer price per share, the market capitalisation of
    Halfords at the commencement of dealing will be approximately £593 million



  • Gross proceeds of the Global Offer will be £266.7 million (prior to the
    exercise of the over-allotment option)



  • Over-allotment option of up to 15% of the Global Offer



  • Conditional dealings expected to commence on the London Stock Exchange at
    8.00am today



  • Admission to the Official List of the UK Listing Authority ('Admission')
    and commencement of unconditional dealings on the London Stock Exchange
    expected at 8.00am on 8 June 2004



David Hamid, Chief Executive of Halfords, said:



'We are delighted that the Global Offer has been so well received and welcome
the new shareholders in Halfords.  We look forward to continuing to deliver our
strategy for the benefit of new and existing shareholders.  I would like to
thank our employees in their significant efforts in helping us deliver this
significant milestone.'




DETAILS OF THE GLOBAL OFFER



Approximately 102.6 million shares are being made available under the Global
Offer, comprising a primary offer of approximately 53.9 million ordinary shares
and a secondary offer of approximately 48.7 million ordinary shares.  In
addition, over-allotment arrangements representing up to 15 per cent. of the
Global Offer  - or 15.4 million ordinary shares - have been granted by certain
existing shareholders.



Immediately following Admission (prior to the exercise of the over-allotment
arrangements) it is expected that approximately 45.0 per cent. of Halfords
ordinary shares will be held in public hands, and that funds advised by CVC
Capital Partners Advisory Company Limited (the 'CVC Funds') and management will
own 46.0 per cent. and 6.0 per cent. of the issued ordinary shares of the
Company, respectively.



Gross proceeds of the Global Offer will be £266.7 million, comprising
approximately £140.0 million from the primary offer and approximately £126.7
million from the secondary offer.  If the over-allotment arrangements are
exercised in full, gross proceeds will increase to approximately £306.7 million.




The Company intends to use the net proceeds of the Global Offer of approximately
£135 million, together with an estimated £195 million of borrowings under the
new bank facilities and available cash balances to repay existing indebtedness.



Conditional dealings on the London Stock Exchange are expected to commence at
8.00am today.  Admission to the Official List of the UK Listing Authority and
commencement of unconditional dealings on the London Stock Exchange's main
market for listed securities is expected to take place at 8.00am on 8 June 2004.
The shares will be listed on the London Stock Exchange under the symbol HFD.



Merrill Lynch International is Global Coordinator, Joint Bookrunner and Sponsor
to the Global Offer, and Citigroup Global Markets U.K. Equity Limited is Joint
Bookrunner.  UBS Limited and Cazenove & Co. Ltd are acting as Co-Lead Managers.
Listing particulars are expected to be published today in respect of the Global
Offer.



For further information:



CVC     [phone]             Halfords     [phone]
Jonathan Feuer                           David Hamid
                                         Nick Carter

Merrill Lynch [phone]       Citigroup [phone]
Rupert Hume-Kendall                      Michael Lavelle
David Melvin                             Ted Kuh
Simon Mackenzie-Smith                    Rajeev Sahney
Richard Snow                             Ed Matthews

Citigate Dewe Rogerson  [phone]
Sue Pemberton



The contents of this announcement, which have been prepared by and are the sole
responsibility of Halfords Group Plc, have been approved by Merrill Lynch
International, of Merrill Lynch Financial Centre, 2 King Edward Street, London
EC1A 1HQ, solely for the purposes of section 21(2)(b) of the Financial Services
and Markets Act 2000.



Merrill Lynch International and Citigroup Capital Markets U.K. Equity Limited
are acting for Halfords Group Plc and CVC Capital Partners Advisory Company
Limited in its capacity as adviser, whether direct or indirect, to the CVC Funds
and no one else in relation to the Global Offer, and will not be responsible to
anyone other than Halfords Group Plc and CVC Capital Partners Advisory Company
Limited in its capacity as adviser, whether direct or indirect, to the CVC Funds
for providing the protections offered to their respective clients nor for
providing advice in relation to the Global Offer.



This announcement does not constitute, or form part of, an offer or invitation
to sell or issue, or any solicitation of an offer to purchase or subscribe for
securities and any subscription for or purchase of, or application for, shares
in the Company to be issued or sold in connection with the Global Offer should
only be made on the basis of information contained in the listing particulars
expected to be published today in connection with the Global Offer and any
supplements thereto.  The listing particulars will contain certain detailed
information about the Company and its management, as well as financial
statements and other financial data.



This announcement is not an offer of securities for sale in the United States.
The securities discussed herein have not been and will not be registered under
the US Securities Act of 1933, as amended (the 'US Securities Act'), and may not
be offered or sold in the United States absent registration or an exemption from
registration under the US Securities Act.  No public offering of the securities
discussed herein is being made in the United States.



This announcement and the information contained herein are not for publication,
distribution or release in, or into, the United States, Canada, Australia or
Japan.  Stabilisation/FSA.



The contents of this announcement includes statements that are, or may be deemed
to be, 'forward-looking statements'. These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
'believes', 'plans', 'projects', 'targets', 'aims, 'would', 'could',
'anticipates', 'expects', 'intends', 'may' or 'will', and include statements
that the Company makes concerning the intended results of its strategy. By their
nature, all forward-looking statements address matters that involve risks and
uncertainties and readers are cautioned that any such forward-looking statements
are not guarantees of future performance. The Company's actual results may
differ materially from those predicted by the forward-looking statements.
Subject to any obligations under the Listing Rules following Admission the
Company undertakes no obligation to publicly update or revise forward-looking
statements, except as may be required by law.


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