Interim Results - 6 Months to 29 February 2000

John Lewis Of Hungerford PLC
15 May 2000

CHAIRMANS STATEMENT

Review of operations

I am pleased to report a return to modest profitability
during the first six months of current year trading. This has been achieved
through a mix of improving sales revenues and trimming costs.

With regret we have decided to withdraw from direct
selling in Europe. The major consideration in this decision has been the
continuing strength of the pound sterling against the Dutch guilder
which has increased by more than 50% since the Company first
entered the Netherlands and Belgium markets in 1996. An effective
cost increase of this magnitude cannot be passed on to customers in the
price competitive kitchen market nor in the long term can it be
commercially absorbed. Accordingly all direct operations in Europe
will cease in October 2000 and the concessions closed. Costs of closure
after allowing for the sale proceeds from concession displays
are likely to be immaterial.

We have reached an agreement (subject to contract) with
our Netherlands concession partner to supply the new 'Shaker'
style as an 'own label' product on an ex works basis. The product
will be similar to our UK offering but sold under the concession
partner's brand name which we believe has strong consumer awareness in the
Netherlands. Our small staff in the Netherlands will in future be
employed directly by our concession partner. This arrangement, whilst
relieving the Company of the financial burden of a directly managed
European business, provides the upside potential to benefit from
the market presence our concession partnership has established. It
will also provide support for existing customers which is important should
the economic fundamentals improve and we decide to re-enter the
market. Our focus in the UK is to broaden the consumer appeal of
our product offering and to extend the range of products we offer.
The new 'Shaker'style kitchen line and the Home Office range are examples
of range extensions. In support of this strategy we have a number
of new showrooms sites under consideration most of which will be
standalone or shared retail units.

Summary of financial results

Turnover for the period was £1,336,000 against £1,203,000
in the comparable period last year.

Profit before taxes were £26,000 (1999 - loss £36,000).

The Balance Sheet shows a significant reduction in bank
borrowing due to improved trading particularly in the latter part of
the half year.

In recent months trading has improved considerably. Our
order book at the end of February was substantial and demand has
remained strong. The new 'Shaker' style kitchens offered in the 'Fired
Earth' paint colour range is proving very attractive to customers and
we are currently retro-fitting most of our showrooms to display the new
line. Home Office sales continue to build and long term we see this
range and other new product lines contributing significantly to sales. As
at the date of this statement all material bank borrowings and long term
debt have been repaid.

Your Board is optimistic that the improvement in
financial performance achieved in the first half can be maintained throughout
the rest of the current financial year.


John Lewis
Chairman



15 May 2000



PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 29 FEBRUARY 2000

                    Unaudited Unaudited    Audited
                     6 months  6 months  12 months
                     ended 29  ended 28      ended
                     February  February  31 August
                         2000      1999       1999
                                                                    
Turnover                1,336     1,203    2,633
Cost of sales             555       507    1,176
                       ------    ------   ------
Gross profit              781       696    1,457
                                                
Distribution costs        237       291      528
Administration costs      505       402      971
- normal
                                         
Administration costs                            
- exceptional              10        40       42
                       ------    ------  -------
Operating                  29      (37)     (84)
profit/(loss)
                                                
Interest receivable         2         1        3
Interest payable          (5)         -     (22)
                       ------    ------  -------
                                                
Profit/(loss) on                                
ordinary activities        26      (36)    (103)
before taxation
                       ------    ------   ------
Taxation                    -         5       50
                                                
Profit/(loss) on                                
ordinary activities        26      (31)     (53)
after taxation
                        =====     =====    =====
Earnings/(loss) per     0.02p   (0.02)p  (0.04)p
share
                        =====     =====    =====
                                                

BALANCE SHEET
AS AT 29 FEBRUARY 2000


                      Unaudited 29    Unaudited     Audited
                      February        28 February   31 August
                      2000            1999          1999
                                                 
                      £000     £000   £000   £000   £000   £000
Fixed Assets                                                   
Intangible assets       17              15            17       
Tangible assets      1,711           1,814         1,746       
                    ------           -----         -----       
                                        
                              1,728         1,829         1,763
Current Assets                                                 
Stocks                 206             253           152       
Debtors                149             287           173       
Cash at bank and       110             109            76       
in hand
                    ------           -----         -----       
                                                       
                       465             649           401       
                                                               
Creditors:                                                     
amounts falling                                         
due within one         770           1,073           767
year
                    ------           -----         -----       
                                      
Net current                   (305)         (424)         (366)
liabilities
                             ------         -----         -----
                                               
Total assets less                                              
current                       1,423         1,405         1,397
liabilities
                               ====          ====          ====
Capital and                                                    
reserves
Called up share                 149           141           149
capital
Other reserves                    1             1             1
Share premium                   825           819           825
account
Profit and Loss                 448           444           422
account
                             ------         -----         -----
Shareholders                                                   
funds - all                   1,423         1,405         1,397
equity interests
                               ====          ====          ====
JOHN LEWIS OF HUNGERFORD PLC
Cash Flow Statement for the six months ended 29 February
2000
                                                           
                              Unaudited Unaudited   Audited
                               6 months  6 months 12 months
                               ended 29  ended 28  ended 31
                               February  February    August
                                   2000      1999      1999
                                 
                                   £000      £000      £000
Operating                            26      (37)      (84)
profit/(loss)
Depreciation                         47        54       113
Loss on disposal of                                        
tangible fixed                        -         -        25
assets
                                                           
Increase in Stock                  (54)     (144)      (42)
Decrease/(increase)                  24      (50)       101
in Debtors
Decrease in                          36     (144)      (23)
Creditors
                                -------  --------  --------
                                      
                                                           
                                                           
Net cash inflow/(outflow)from        79     (321)        90
operating activities
Returns on investment and             -         1      (19)
servicing of finance
Corporation tax                       -         -      (31)
Capital expenditure and            (12)      (51)      (98)
financial
investment
Equity dividends paid                 -         -      (49)
Financing                             -         -        11
                                 ------  --------   -------
Increase/(Decrease)                  67     (371)      (96)
in cash
                                   ====     =====      ====
                                                           
Notes:                                                     

Notes:

1. The interim accounts, which are unaudited, have been
prepared under the historical cost convention using the accounting policies
set out in the accounts for the year ended 31 August 1999.

2. Earnings per share is calculated on the profit of £26,000 after taxation and
on the basis of 148,745,519 shares in issue. The loss per earnings for the 6
months ended 28 February 1999 is calculated on the loss after taxation of
£31,000 and on the basis of 140,361,266 shares in issue. The loss per earnings
for the year ended 31 August 1999 is calculated on the loss after taxation of
£53,000 and on a weighted average number of shares in issue of 148,179,900.

3.  2000 Interim Accounts

Copies of the 2000 interim accounts will be sent to shareholders in due course.

4.  Copies of this announcement will be available from the Nominated Adviser:
Smith & Williamson, No 1 Riding House Street, London, W1A 3AS for 14 days from
the date of this announcement.



REVIEW REPORT BY THE AUDITORS

To John Lewis of Hungerford plc

Introduction

We have been instructed by the company to review the financial information set
out on pages 4 to 6 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

Directors 'responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors
prepare the financial information on the basis of accounting policies and
presentation consistent with those applied in preparing the preceding annual
accounts except where any changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of making
enquiries of management and applying analytical procedures to the financial
information and underlying financial data and based thereon, assessing whether
the accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level
of assurance than an audit. Accordingly we do not express an audit opinion on
the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 29 February 2000.

H W Fisher & Company
Registered Auditors
Chartered Accountants

15 May 2000