Update on Daventry Warehouse

RNS Number:1998J
Mothercare PLC
26 March 2003



                                                                   26 March 2003

                                 Mothercare plc

                      Update on Daventry Warehouse Review



Mothercare plc is today providing an update on its Warehouse review which was
initiated by Ben Gordon following his appointment as Chief Executive in December
2002.



Mothercare has decided to remain at its current facility in Daventry with
Tibbett & Britten as principal contractor and has signed a revised contract.
This conclusion was reached after a thorough financial and operational review of
a wide range of options, which included changing both site and contractor. The
reasons for the decision are as follows:-


     *    The Daventry warehouse is working effectively and costs are beginning to reduce.

     *    The contract with Tibbett & Britten has been amended to a two-year rolling contract with a
          management fee that includes an element payable against the achievement of performance measures.

     *    Remaining at the Daventry site is low risk as Mothercare will avoid the disruption and costs which
          would arise from another warehouse move.



Ben Gordon is currently undertaking a fundamental operational review of the
business, including the Supply Chain. The new contract arrangements with Tibbett
& Britten gives Mothercare the flexibility to reassess its warehouse
requirements in the light of that review.





Ben Gordon, Chief Executive, Mothercare, said



"We have worked with rigour and speed to reach this conclusion. We have
considered every option and looked for the most appropriate solution to support
the business at this time.  We believe that the decision to remain at Daventry
with Tibbett & Britten gives Mothercare stability now and the flexibility to
review our requirements in two years time and to accommodate the conclusions of
the supply chain work we are undertaking.   Working closely with Tibbett &
Britten, we are making good progress in improving the cost structure and
performance of the warehouse and continue to meet customer needs effectively."



Enquiries to:-



Brunswick
Susan Gilchrist/Philippa Power                                     020 7404 5959



Note: Mothercare will announce its preliminary results for the 52 weeks ended

29 March 2003 on Thursday, 22 May 2003.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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