Director Shareholding

MFI Furniture Group PLC
29 July 2002


MFI FURNITURE GROUP PLC ('the Company')


NOTIFICATION OF DIRECTOR'S INTERESTS.

Part One

We advise today that on 26 July 2002 the Executive Directors of MFI Furniture
Group Plc were allocated matching awards of ordinary shares of 10 pence each in
the Company plus market value share options at 114 pence per share ('the
Matching Awards') under the terms of the MFI Executive Co-Investment Plan ('the
Co-Investment Plan' or 'the Plan'). The Co-Investment Plan was approved and
adopted by shareholders at the Annual General Meeting of the Company held on 22
May 2002. Details of these Matching Awards are set out in the table below.

Under the terms of the Co-Investment Plan the Directors receive conditional
Matching Awards consisting of two matching shares and two matching options for
each share committed by them to the Plan ('the Commitment Shares'). Commitment
Shares must be held in the Plan for a minimum of three years from the date of
commitment ('the Commitment Period'). A participant's Commitment Shares may
consist of shares held beneficially, shares held beneficially but subject to
employment conditions ('Conditional Commitment Shares') and shares to be
committed by participants within periods specified by the Remuneration
Committee.

              Name                        Number of                        Matching Awards
                                                              Number of Matching      Number of Matching
                                      Commitment Shares             Shares                 Options

John          Hancock                      949,835                1,899,670              1,899,670
Martin        Clifford - King              530,427                1,060,854              1,060,854
Mark          Horgan                       530,427                1,060,854              1,060,854
Matthew       Ingle                        616,776                1,233,552              1,233,552
Gordon        MacDonald                    569,901                1,139,802              1,139,802
Bob           Wilson                       511,671                1,023,342              1,023,342



The number of shares or options which vest under a Matching Award will depend
upon the Company's performance over the Commitment Period. Matching Awards will
vest as follows:

  • 20% of the Matching Award will vest if the Company's Total Shareholder
    Return ('TSR') is at the median level against the FTSE-250
    constituents, rising on a straight line basis to 50% of the Matching Award
    vesting for upper quartile performance; and in addition.
  • 20% of the Matching Award will vest if average Earnings per Share ('EPS')
    is equal to the Retail Price Index ('RPI') plus 10% per annum over the
    Performance Period, rising on a straight line basis to 50% of the Matching
    Award vesting when average EPS growth is equal to or greater than RPI plus
    20% per annum.

Part Two

We also advise today that on 29 July 2002 the trustee of the MFI Employee Share
Trust Computershare Trustees (C.I.) Limited ('the Trustee') acquired 8,412,365
MFI Furniture Group Plc ordinary shares of 10 pence each ('the Shares') at 121.2
pence per share. In addition, that on 26 July 2002 the Trustee transferred
12,053,711 Shares to Computershare Nominees Limited to be held in designated
accounts in the name of each participant in the Co-Investment Plan. The
designated accounts are comprised of Matching Shares and Conditional Commitment
shares. The interests of each director in the Conditional Commitment Shares held
in their designated account are set out in the table below. The directors of MFI
Furniture Group Plc are deemed to be interested in all of the shares held by the
trustee of the Trust as potential beneficiaries of the Trust and in the shares
held by Computershare Nominees Limited in their respective designated accounts
under the administrative arrangements for the Co-Investment Plan.

                  Name                    Conditional Commitment Shares

    John          Hancock                            648,279
    Martin        Clifford - King                     56,266
    Mark          Horgan                             497,107
    Matthew       Ingle                              512,379
    Gordon        MacDonald                          414,092
    Bob           Wilson                             432,502







Contacts:

MFI Furniture Group Plc

Gerard Hughes (Company Secretary)           020 8913 5313

Brunswick Group Limited

Katya Reyner                              020 7404 5959




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