CPR.L Regulatory News (CPR)

Embargoed until 7am, 1 February 2011

1 February 2011

Carpetright plc

Interim Management Statement

Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces a trading update for the 13 weeks ended 29 January 2011.

Highlights

·; Group sales declined by 6.4%, with the year on year effect of closing our operations in Poland accounting for 0.4% of this decline.

·; The Group's store base decreased by eight to 6942 stores at the period end.

·; UK and Republic of Ireland sales declined by 5.0%, with like-for-like sales3 down 7.7%.

·; In local currency terms, total sales in Rest of Europe (The Netherlands and Belgium) decreased by 3.5% with like-for-like sales down 5.0%. After allowing for the movement in exchange rates, this translates to a total sales decline of 11.2%.

·; Full year profit to be below market expectations.

Lord Harris of Peckham, Chairman and Chief Executive, said:

"The tough trading conditions in the UK and Republic of Ireland have continued into the third quarter of our financial year, with adverse weather conditions and fragile consumer confidence producing a difficult floor coverings market.

"As we stated at our last update, we were expecting January trading to be boosted by the impact of snow in the comparative period. Although we have achieved an increase in sales year on year since Christmas, this has not been at the level expected. This causes us to remain cautious about the outlook for the remainder of the financial year.

"We expect the total UK & Republic of Ireland full year margin to be in line with previous guidance of a 50 basis point increase on last year. The focus on effective cost management has continued.

"Given the difficult trading conditions and the likely outturn for the balance of the year, the Board now expects profits for the year to 30 April 2011 will be below last year and below the current range of market expectations, although ahead of those achieved in the 2009 full year.

"There have been no significant changes to the Group's financial position during the period and the business remains well placed to capitalise on opportunities when economic conditions improve."

The Group will report its usual year end pre-close trading update on Wednesday 27 April 2011 in advance of its year end on 30 April 2011.

Analyst conference call

Lord Harris will host a conference call for analysts at 8:30am today.

The dial in number is 0845 634 0041 with the passcode 4251417.

Thereafter, for further enquiries please contact:

Carpetright plc

Lord Harris of Peckham, Chairman and Chief Executive

Neil Page, Group Finance Director

Tel: 01708 802000

Citigate Dewe Rogerson

Kevin Smith / Lindsay Noton

Tel: 020 7638 9571

A copy of this trading statement will be available on our website www.carpetright.plc.uk today from 7.00am

Notes

1. All sales figures are quoted after deducting VAT.

2. Excludes Sleepright within Carpetright locations.

3. Like-for-like sales calculated as this year's net sales divided by last year's net sales for all stores that are at least 12 months old at the beginning of our financial year. Stores closed during the year are excluded from both years. No account is taken of changes to store size or introduction of third party concessions. Sales from insurance and house building contracts are supplied through the stores and included in their figures.

4. Certain statements in this report are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements contain risks and uncertainties, actual results may differ materially from those expressed or implied by these forward looking statements. We undertake no obligation to update any forward looking statements whether as a result of new information, future events or otherwise.

Appendix 1: Store portfolio