Adoption of IFRS 2

10 June 2005

GUS plc, the retail and business services group, has in the past prepared its financial statements in accordance with UK Generally Accepted Accounting Principles (UK GAAP). Following a European Union Regulation issued on 19 July 2002, GUS will be required to report its results in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Commission from 1 April 2005. The Transition Date to IFRS for GUS is 1 April 2004, being the start of the period of comparative information.

An explanation of the differences between UK GAAP and IFRS that are applicable to GUS will be released on 14 June 2005 and key differences between UK GAAP and IFRS will also be described in the 2005 Annual Report due for release on 20 June 2005.

GUS has elected to apply IFRS 2 “Share-based payment” to those share-based payments granted before 7 November 2002 but not vested at the Transition Date. IFRS 2 is only required to be applied to share-based payments granted after 7 November 2002. However, the Group considers that retrospective application before this date provides a better indication of how past and future results are affected in relation to the year-on-year level of grants. As required by IFRS 2, the fair values of grants made before 7 November 2002 must be disclosed before IFRS is formally adopted. Accordingly, the fair values of all grants that impact the Group's financial results under IFRS for the year to 31 March 2005 are shown below.

Enquiries

GUS announcements are available on its website, www.gusplc.com.

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