MOSB.L Regulatory News (MOSB)

FOR IMMEDIATE RELEASE 20 June 2011

Moss Bros Group PLC

("Moss Bros" or the "Company")

Disposal of the Cecil Gee Businesses

and

Trading Update

Moss Bros, the UK's number 1 branded suit specialist, today announces that, in line with its stated strategy of focusing on the core Moss business, it has disposed of 8 Cecil Gee stores to JD Sports Fashion plc, for a cash consideration of £1.7 million (the "Disposal"). JD Sports Fashion plc acquired the business and assets of the 8 stores as a going concern and completion of the Disposal ("Completion") took place on 18 June 2011. The Cecil Gee business comprised 9 menswear retail stores and the remaining store, Glasgow, will convert to a new format Moss store in the next few weeks. The value of the gross assets sold at 29 January 2011 was £3.0m and in the financial year ended 29 January 2011 the loss attributable to those assets was £0.5m

Highlights

·; Cash consideration of £1.7 million was paid to Moss Bros in cash on Completion.

·; The transaction is integral to Moss Bros' strategy to focus growth and resources on the core Moss business.

·; The Disposal, in conjunction with the disposal of the Hugo Boss Franchised business announced earlier this year, will enable Moss Bros to significantly accelerate this strategy as the cash proceeds of the Disposals will provide funding for the redevelopment of Moss branded stores, investment in the service experience, piloting an appropriate roll out of new initiatives such as Moss Bespoke and the development of a customer relationship management system to leverage the value of the hire business.

·; The Disposal will result in a much simpler business model.

Current Trading Update

·; Moss Bros confirms that it has continued to trade well, with like-for-like sales, excluding the Cecil Gee business, up 13.4% for the 20 weeks to 18 June 2011. Gross margin is currently ahead of last year, although rising raw material prices are expected to limit further improvement in the second half of the year.

·; With the disposal of Cecil Gee secured, and the strong trading performance to date, the Board, although mindful of the fragile external trading environment and the importance of Christmas trading to the full year results, nonetheless anticipates that the out turn for the full year will be ahead of current market forecasts.

Commenting on the Disposal, Brian Brick, Chief Executive of Moss Bros, said:

"This is another significant milestone in delivering the strategy we set out of leveraging the core Moss business. Having restored the quality of our product offering and continued the strong momentum in positive like-for-like sales, this transaction will give us the opportunity to accelerate investment and development of the brands which we own, from a position of operational focus and financial strength.

Although we are ever mindful of the fragile trading conditions in the UK, we are making good progress towards leadership of the attractive niche which we have as the UK's number 1 branded suit specialist."

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