Merger Update

Kingfisher PLC
31 May 2002



IMMEDIATE RELEASE


Friday 31 May 2002

Following a meeting between Kingfisher's Chairman Francis Mackay and members of CDI's senior
management team the following agreed statement is being released by the CDI executives.

'We, the senior executives, did appreciate the quality of the discussions with Francis Mackay,
enabling us to be able to address all of the points which had been raised.

We note with satisfaction the state of mind and intention signed up to by Francis Mackay.

The answers we received will allow us to reassure our teams on the following points, amongst others,
should a bid be launched:

-    The commitment that there would be no compulsory redundancies;


-    That Francis Mackay guaranteed that financial and tax implications vis-a-vis staff savings and
     options schemes would be borne by Kingfisher so that nobody is harmed;

-    Finally, Francis Mackay confirmed for us that there would be no merging of Brico Depot and
     Castorama France's head offices and that store and regional structures and organisation would not
     be changed.

In other respects, the executives take the view that the absence of a CEO and of a global project for
the group does not allow them to look to the future with confidence and peace of mind and gives them
the impression of a hasty operation'.

Francis Mackay added: 'I welcomed the opportunity to discuss the issues raised and to reassure those
present.  I recognise the importance of appointing a successor to Sir Geoffrey Mulcahy as Group Chief
Executive and this matter is receiving my full attention.

'Finally, I would like to thank those present for their open and constructive approach and I have
given each of them a personal letter asking for their support in communicating my message to their
teams.  I am also pleased to have reached agreement on a process for further direct communication
between myself and Castorama employees.'


                                           Company profile

1.  Kingfisher is Europe's leading home improvement retailer, and is ranked number three in the world.
The company operates more than 580 home improvement stores in 11 countries, and enjoys market-leading
positions in the UK, France and Taiwan. Sales for the Home Improvement sector for the year to 2
February 2002 were more than £5.8 billion, with retail profit in excess of £430 million.

2.  Kingfisher Electrical & Furniture operates more than 820 stores in nine countries. It is Europe's
third largest electricals retailing business by sales and number two by retail profit. As well as
holding the leading position in France and the number two position in the UK, Kingfisher also enjoys
leading positions in Belgium and in the Czech and Slovak Republics.  Sales for the year to 2 February
2002 were more than £3.7 billion, with retail profit of £184 million.


Further Enquiries:
Broker and Institutional Enquiries
Ian Harding, Director of Investor Relations                                       [phone]


Media Enquiries
Andrew Mills, Director of Corporate Affairs                                       [phone]
Jonathan Miller, Head of Corporate Communications, UK                             [phone]


France
Graham Fairbank, Head of Corporate Communications                                [phone]

Kingfisher plc                                                                   [phone]

Kingfisher Website                                                                www.kingfisher.com


The Maitland Consultancy
Angus Maitland/Duncan Campbell-Smith                                                 [phone]

Euro RSCG

Laurent Wormser                                                                     [phone]

Marie-Noelle Brouaux                                                                [phone]







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