Mothercare Plc : Statement re Australia

                   Mothercare Plc : Statement re Australia

                                MOTHERCARE PLC
                             Update on Australia

Following the deterioration of trading  conditions in Australia, as  announced 
in November 2012, a decision was  taken by our associate Mothercare  Australia 
Limited^1 to sell its Mothercare and  Early Learning Centre businesses to  The 
Myer  Family  Company   Holdings  Pvt  Ltd.   These  discussions  have   ended 
inconclusively  and  Mothercare  Australia  Limited^1  has  been  placed  into 
administration.

In November 2012, Mothercare plc made  a provision of £10.6 million,  covering 
the remaining  value of  its  investment in  and  other receivables  due  from 
Mothercare  Australia  Limited^1.  Since  then  receivables  from   Mothercare 
Australia Limited^1 have been tightly controlled on short payment terms.

Mothercare Australia Limited^1 accounts for  circa 7% of International  retail 
sales. The expected profit impact is  minimal and does not change our  overall 
view of International profitability going forward.

Apart from  the  information contained  in  this  update, there  has  been  no 
significant change to the financial position of the Company.

Note 1: Mothercare  Australia Limited  is a separate  entity in  which the  UK 
quoted company Mothercare plc has an indirect minority stake.

Enquiries to:
Mothercare plc
Ramona Tipnis, Director of Investor Relations 01923 206455

Tulchan Communications
Katharine Wynne & Susanna Voyle   020 7353 4200

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Source: Mothercare Plc via Thomson Reuters ONE
HUG#1674043
 
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