Disposal / Acquisition

Next PLC
1 February 2001


Date:       Embargoed until 07:00, Thursday 1 February 2001


Contact:    David Keens, Finance Director
            Next plc
            Tel:  [phone]

            Alistair Mackinnon-Musson
            Philip Dennis
            Hudson Sandler
            Tel:  [phone]
            E-Mail:  [e-mail]



                              NEXT PLC ('NEXT')

               Purchase of First Retail Finance Limited ('FRF')
        Disposal of First Retail Finance (Chester) Limited ('FRF Chester')


Next, through its subsidiary Ventura, has for some years operated two joint
venture companies under the names of FRF and FRF Chester with the Bank of
Scotland ('BoS').  FRF is managed by Ventura and is engaged in the provision
of funded consumer credit through third party clients.  FRF Chester is managed
by BoS and engaged in the marketing and provision of personal loans to FRF
clients and customers.

Next and BoS have agreed to terminate the joint venture arrangements and as a
consequence BoS has acquired Next's shareholding in FRF Chester for £0.1m in
cash.  Next has acquired the BoS shareholding in FRF for £1.4m in cash and has
also repaid in cash £17.4m of funding previously provided by BoS to FRF.  The
total net cash outflow to Next was therefore £18.7m.  Next has acquired the
net assets of FRF, which are predominantly consumer debtors, at approximately
their net book value.  Next will focus FRF on collecting out its consumer
debtors, although a small amount of new advances through existing FRF clients
will continue for up to one year.

The purchase of FRF and disposal of FRF Chester follows the disposal last week
of Clydesdale Financial Services Limited and is part of the process to focus
Ventura on the provision of call centre services and customer account
management to companies who wish to benefit from outsourcing these business
activities.


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