Re press speculation

MFI Furniture Group PLC
17 August 2006


For immediate release                                             17 August 2006


                            MFI Furniture Group plc

                     Statement regarding press speculation


The Board of MFI Furniture Group plc ('MFI') notes the article in the Financial
Times this morning commenting on discussions with Merchant Equity Partners
('MEP') on the possible disposal of the retail business of MFI.


MFI confirms that it is in discussions with MEP. A number of significant issues
remain outstanding, and the discussions may or may not lead to a transaction
which the Board would compare with other options for MFI Retail. The terms
currently under discussion include nominal consideration and cash contributions
from MFI and the purchaser, as well as other features which could have a
material bearing on shareholder value.


A further announcement will be made when appropriate.


Enquiries:

MFI Furniture Group plc                              Tel: [phone]

Gary Rawlinson

Brunswick                                            Tel: [phone]

Fiona Laffan/ Anna Jones


END



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