Trading Statement

Mothercare PLC 18 January 2007 18 January 2007 MOTHERCARE PLC THIRD QUARTER TRADING UPDATE Mothercare plc today issued the following update on trading in respect of the 13 weeks to 12 January 2007 (third quarter). All figures in this statement are comparable with the same weeks last year. Group performance Worldwide sales for the 13 weeks to 12 January 2007 were up 5.1%, and for the 41 weeks to 12 January were up 5.3%, driven by the improvements we have made in product, sourcing, distribution and stores which benefit our entire multi-channel business in the UK and overseas. UK performance +---------------------------------+------------+--------------+ | | 13 Weeks to| 41 Weeks to| | | | | | | 12 January| 12 January| +---------------------------------+------------+--------------+ |Total UK sales* | +0.4%| +1.3%| +---------------------------------+------------+--------------+ |Total UK like-for-like sales* | +0.8%| +1.9%| +---------------------------------+------------+--------------+ |UK store sales | -0.7%| +0.6%| +---------------------------------+------------+--------------+ |UK store like-for-like sales | -0.3%| +1.1%| +---------------------------------+------------+--------------+ * Total UK sales and Total UK like-for-like sales include Direct in Home (home shopping). The multi-channel UK business has delivered a resilient sales performance with the Direct business performing very well, including Direct in Home sales up 22%. Trading conditions were particularly difficult in November but improved in December. As a result markdown levels were higher than planned in quarter three, but have now returned to normal levels. The new National Distribution Centre performed well over Christmas and we will look to optimise our return on this investment next year. International performance +---------------------------------+------------+--------------+ | | 13 Weeks to| 41 Weeks to| | | | | | | 12 January| 12 January| +---------------------------------+------------+--------------+ |Total International sales | +38.0%| +31.0%| +---------------------------------+------------+--------------+ The strong momentum in our International business continues. We have opened 53 stores in the current year taking the total to 319. We are on track to open approximately 70 overseas stores in this financial year. Ben Gordon, Chief Executive said; 'Mothercare delivered a resilient third quarter sales performance in what remained a volatile UK consumer environment. Direct in Home sales were up 22% supported by the successful launch in November of our new state of the art online platform, built by Amazon Services. This performance demonstrates the importance of our multi channel strategy in the UK. The International business continues to grow rapidly with sales up 38%, driven by strong like-for- like sales and 53 new store openings in the year to date, taking the total to 319 including the recent opening of our 18th store in Russia and our 10th store in India.' Mothercare expects to make a pre-close statement on 4 April 2007 ahead of its preliminary results announcement for the 52 weeks to 31 March 2007. Enquiries to: Mothercare plc Ben Gordon, Chief Executive 01923 206001 Neil Harrington, Finance Director 01923 206187 Brunswick Group Catherine Hicks/Anna Jones 020 7404 5959 Note 1 Under IAS 39 (Financial Instruments: Recognition and Measurement) we are required to mark commercial currency hedges to market and as a result we reported an IAS 39 currency loss of £0.9m in the first half. As a result of the recent strengthening of Sterling against the US dollar, which benefits our buying operations, we estimate that the IAS 39 currency adjustment has now increased to approximately £2.5 million. This is a highly volatile non-cash adjustment which varies daily and does not reflect the underlying profitability or cash flows of the business and at the year end we will again present an Underlying Profit Before Taxation measure which excludes the IAS 39 adjustment and other exceptional items. This information is provided by RNS The company news service from the London Stock Exchange

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