Graham Kirkham
04 March 2004


PRESS ANNOUNCEMENT
FOR IMMEDIATE RELEASE

4 March 2004

DFS Furniture Company plc
('DFS' or the 'Company')

Statement with respect to possible offer for DFS

Graham Kirkham, Executive Chairman of DFS, confirms that he is contemplating
making a possible offer for the share capital of the Company other than that
already owned by him and his family. An indicative proposal has been submitted
to the Board of DFS, which is subject, inter alia, to financing and due
diligence. In view of the recent share price rise, he wishes to clarify that the
offer price which he is contemplating is 415 pence per share.

Commenting on the situation, Graham Kirkham said:

'Over the last two years the market place in which DFS operates has become much
more competitive, as major retailers from other sectors have entered the home
furnishings market. I do not believe this is temporary, but represents a
structural change in the market place. As the UK's number one upholstery
retailer, DFS is more affected than others. This increase in competition
combined with the prospects of higher interest rates means that conditions in
our market will become even more demanding.

I believe that DFS would be better able to deal with these conditions as a
private company, free from the need to continue to deliver consistent growth in
sales, earnings and dividends.

Since flotation in November 1993, DFS has grown annual operating profits from
£18.6 million to £55.9 million. DFS' market capitalisation has increased by
approximately £166 million from £271 million at the time of flotation. In
addition, DFS has returned approximately £228 million to shareholders. I do not
believe this level of profit growth and value creation for shareholders is
sustainable. An offer price of 415 pence per share would represent a full and
fair price to shareholders.

I have agreed with the independent directors that I will continue in my
executive capacity at DFS. However I will be taking no part in their
deliberations of my approach.'

Hawkpoint Partners Limited has been appointed as financial adviser to Graham
Kirkham and Teather & Greenwood Limited as broker.

There can be no assurance that any offer will be made. A further announcement
will be made in due course, if appropriate.

Enquiries

Tulchan Communications

Andrew Grant
Kate Inverarity 020 7353 4200


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