Alexon Group PLC : Company Statement

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

5 September 2011

FOR IMMEDIATE RELEASE

Alexon Group PLC

Response to recent press speculation, commencement of offer period and trading update

The Board of Alexon Group PLC (the “Company” or, together with its subsidiaries, the “Group”) notes the press speculation concerning the Company. The Board confirms that it continues to actively explore a number of options for a more appropriate capital structure. One of the options under review is a possible offer for the issued share capital of the Company. The Company is in discussions with more than one party, however no firm proposal has been received in this regard and there can be no certainty that a formal offer will be made for the Company in due course. Further announcements on this matter will be made as appropriate.

Since the Interim Management Statement on 7 July the trading environment has deteriorated, most notably in August. Like for like sales for the first half were slightly positive at +0.7% although total sales were down 8% as the Group continued to slow its opening programme to conserve cash.

However, sales during August were below the Board’s expectations with the first three weeks of the month being down 9% on a like for like basis during very difficult retail and economic conditions. Although this trend is improving, with sales in the last week of August down 1% on a like for like basis, the trading environment and outlook remains very tough. Accordingly, having undertaken a reforecasting exercise, the Board now expects the Group’s performance for the year to be well below its previous expectations.

Despite this, progress is being made in a number of areas. Online maintained its very strong growth, up 118% at the half year (8% of the mix); the reshaping of the portfolio is on track; re-fitted stores and concessions continued to significantly outperform the balance of the estate and the Kaliko and Alexon brands achieved double digit like for like sales growth. Furthermore, the work which has been undertaken to develop each of the brands within the portfolio has resulted in the Group receiving a number of approaches for additional new business opportunities for Spring 2012. These offers are presently being scoped in the context of an ongoing portfolio re-shape.

A detailed update will be given at the Group’s interim results on 30 September 2011 for the half year ended 30 July 2011.

A copy of this announcement will be available at www.alexongroup.co.uk. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

Investec Investment Banking (which is authorised and regulated in the United Kingdom by the Financial Services Authority) is acting exclusively for the Company and for no one else in connection with any possible offer and will not be responsible to anyone other than the Company for providing the protections afforded to Investec clients nor for providing advice in relation to any possible offer or any other matters referred to in this announcement.

Dealing Disclosure Requirements of the Takeover Code (the “Code”)

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any paper offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any paper offeror is first identified. An Opening Position Disclosure must contain details of the person’s interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any paper offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any paper offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a paper offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any paper offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any paper offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person’s interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any paper offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a paper offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel’s website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. If you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure, you should contact the Panel’s Market Surveillance Unit on +44 (0)20 7638 0129.