Card Factory Regulatory News (CARD)

3 October 2016

CARD FACTORY PLC

("Card Factory" or the "Company")

NOTIFICATION OF TRANSACTIONS OF DIRECTORS AND PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES ("PDMRs")

LTIP awards granted to Karen Hubbard and Darren Bryant

Card Factory announces that, in line with the Company's Remuneration Policy ("Policy") set out in its 2016 Annual Report and Accounts ("Annual Report"), conditional, nil-cost, awards over ordinary shares of 1p each in Card Factory plc have been granted to Karen Hubbard, Chief Executive Officer of Card Factory, and Darren Bryant, Chief Financial Officer of Card Factory, under the Card Factory Long Term Incentive Plan ("LTIP"). Karen Hubbard was awarded 235,485 shares and Darren Bryant 160,448 shares.

In determining the number of shares to be awarded, the Remuneration Committee, in accordance with the LTIP rules, used the average middle market price from the London Stock Exchange's Daily Official List over the 6 months prior to the date of the award.

The vesting of such awards and the receipt of shares is subject to the satisfaction of a performance condition over the three financial years commencing 1 February 2016 and the shares will be subject to a holding period which will end two years after vesting.

As disclosed in the Annual Report, the Remuneration Committee has, in accordance with the Policy, reviewed the performance targets ahead of the grant of these awards to ensure they remain appropriately stretching over the performance period and deliver strong earnings growth and capital returns.

Having consulted with shareholders and considered in detail the strategic objectives of the business and the opportunities for growth over the three year performance period, the Remuneration Committee has set the EPS performance measures with threshold vesting (25% of maximum award) at 5% compound annual EPS growth rate ("EPS CAGR") (2015: 9%) and maximum vesting (100% of award) at 10% EPS CAGR (2015: 15%). In addition, for awards to vest, the Company's return on capital must be consistent with historic levels, reinforcing the focus on returns for shareholders. The Committee feels these future targets are sufficiently stretching and balance the need to appropriately incentivise management whilst providing assurance to shareholders that the targets support the long-term profitable growth of the business.

The transaction took place on 30 September 2016 in West Yorkshire. This notification is made in accordance with Article 19 of the Market Abuse Regulation and the Disclosure and Transparency Rules. Card Factory was notified of the above transactions on 3 October 2016.

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