Trading Statement

MFI Furniture Group PLC
03 March 2005


3 March 2005

                            MFI Furniture Group Plc
                                 Trading Update

MFI Furniture Group Plc today issues its scheduled trading statement for the
period from 26 December 2004 to 2 March 2005, the last day of UK Retail's Winter
Sale.

Group net orders in the period were £444 million, representing an increase of 6%
on a total basis and 4% on a same store basis compared to last year.

                                Total           Same store

     Howden Joinery              9%                6%
     UK Retail                   4%                2%
     France Retail              12%                9%
     Group                       6%                4%

Howden Joinery total net orders were up 9% on the same period in 2004 and same
store growth was up 6%.

As a result of the earlier timing of Easter this year, our UK Retail Winter Sale
in 2005 concluded two weeks earlier than it did in 2004. Total net orders to 2
March 2005 were up 4%, with same store net orders up 2%, compared to the same
period to 2 March 2004. This performance was in line with management's
expectations.

Within UK Retail, bedrooms and beds recorded increased net orders versus last
year, performing strongly on the back of the new product introduced in the
second half of 2004. Sofas, living and working and bathrooms also showed good
net order growth relative to last year. In kitchens, total net order values were
flat with last year, although volumes have increased.

Customer transactions increased across all product categories. The proportion of
orders below £500 increased as we recaptured our share of spending by more cost
conscious customers. As a consequence of these changes, logistics costs are
expected to increase as a percentage of sales, reflecting deliveries to more
customers' homes.

The changes to category mix and increase in lower value orders, discussed above,
together with the price investment made in the second half of 2004, are expected
to offset any gross margin benefits from supply chain improvements in the first
half of 2005.

Hygena Cuisines, our French retail business, recorded a strong performance with
total net orders up 12% and same store net orders in local currency up 9% on the
same period last year.

Our next trading update will be on 19 May 2005, the day of the Annual General
Meeting.

Enquiries

John Hancock                     Chief Executive                   020 8913 5319
Shaun O'Callaghan                Interim Chief Financial Officer   020 8913 5350
Susan Gilchrist / Fiona Laffan   Brunswick                         020 7404 5959
Anna Jones


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