Acquisition

RNS Number:6456Q
Strategic Retail PLC
31 August 2005


                              Strategic Retail plc

      Acquisition of part of the business and assets of Room 2 Limited (In
 Administration) trading as Texstyle World, Texstyle World Home and Room 2, and
       part of the assets of Container Store Limited (In Administration)


The Board of Strategic Retail plc ("Strategic Retail" or "the Company")
announces that the Company has entered into an agreement to acquire certain of
the assets and liabilities of Texstyle World Home ("Texstyle World"), a home
furnishings company based in East Kilbride, Scotland.  Under the terms of the
agreement, Strategic Retail has been granted a licence to trade from eight
stores and will acquire stock to the value of #1,249,996, together with fixtures
and fittings and other fixed assets, for a consideration of #1.5 million. The
stores are located at Uddington, Aberdeen, Inverness, Elgin, Dumfermline,
Falkirk, Dumfries and Bishopbriggs.


In the year ended 27th February 2005, these stores recorded turnover of
approximately #9.9 million and profits before interest and taxation of
approximately #350,000.


The net book value of the assets being acquired as at 31st July 2005 amounted to
approximately #2.6 million.


The consideration will be satisfied by an immediate cash payment of #350,000 and
the issue of convertible loan notes to the value of #500,000.  Certain
liabilities of Texstyle World to the value of #650,000 will also be assumed.


At the option of the Company, the convertible loan notes are convertible into a
maximum number of 5,926,470 Strategic Retail ordinary shares, representing
approximately 27.1 per cent. of the enlarged share capital of the Company.


The acquisition expands the group in terms of products and number of stores. The
existing management of Fads (Trading) Limited, a wholly-owned operating
subsidiary of the Company, will oversee the acquisition and the group expects to
produce margin and overhead benefits as a result of the  enlarged business. The
acquisition also brings the Texstyle World brand into the group enabling it to
be expanded in other areas.



For further details contact:


Ian Currie                          Strategic Retail plc                0161 831 1512

David Youngman                      W.H. Ireland Limited                0161 832 2174


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