Mothercare Regulatory News (MTC)

MOTHERCARE PLC

SECOND QUARTER TRADING UPDATE

First half overseas retail sales exceed UK; 800th store overseas; 50th store in India

Mothercare plc issues a trading update for the second quarter (13 weeks) and the first half (28 weeks) ended 9 October 2010.

Group performance - second quarter

§ Worldwide network sales(1) up 7.0%

§ Total group sales up 4.7%

§ Total UK sales up 1.8%

§ International retail sales(1) up 14.2%

§ UK like-for-like sales(1) down 3.2% (down 1.9% inc. VAT)

§ Direct in Home sales up 18.2%

Group performance - first half

§ Worldwide network sales up 7.5%

§ Total group sales up 2.5%

§ Total UK sales down 0.5%; like-for-like sales down 3.8% (down 2.4% inc. VAT)

§ International retail sales up 17.3%; like-for-like sales flat

§ Direct in Home sales up 15.8%

Ben Gordon, Chief Executive said:

"We continue to see strong results from our global growth strategy. In the first half, overseas retail sales exceeded UK retail sales for the first time, and we now have 1,217 stores worldwide in 54 countries.

"International is growing rapidly and we have opened our 50th store in India and our 800th store overseas. We recently acquired a 25% stake in our Australian franchisee, which will have 60 Mothercare and Early Learning Centre stores in three years through a combination of acquisition and organic growth. So far this year we have opened 112 new overseas stores, increasing retail space by 13%. We expect to open at least 150 new overseas stores this year, 50 more than our previous estimate, increasing retail space by at least 20%.

"In the UK, Direct again delivered double digit growth and our new Wholesale channel was boosted by the successful launch of Mini Club, our new clothing partnership with Boots, already trading in 370 Boots stores. The property restructure is progressing well with 20 smaller in town stores closed and 7 larger Parenting Centres opened in the first half. New store openings are, as expected, reducing UK like-for-like sales whilst improving overall profitability.

"We are benefiting from the strategic initiatives we have taken and the rapid growth of International, Direct and Wholesale. The UK consumer environment remains uncertain, and accordingly we are planning cautiously for the important second half."

Enquiries to:

Mothercare plc

Brunswick Group

Note 1 - "Like-for-like" sales are defined as sales from stores that have been trading continuously from the same selling space for at least a year and include Direct in Home and Direct in Store and exclude estimated joint venture and Wholesale sales. International retail sales are the estimated retail sales of our overseas franchise partners and joint ventures. "Network" sales are UK retail sales plus franchise and joint venture retail sales and other Wholesale sales.