Released: 01/06/2000

Signet Strengthens its US Business by the Acquisition of Marks & Morgan Jewelers, Inc.

Signet Group plc (LSE: SIG and Nasdaq NMS: SIGYY), the world's largest speciality retail jeweller, today announced the acquisition of Marks & Morgan, the ninth largest speciality retail jeweller in the US. The business consists of 137 stores predominantly positioned in prime mall locations in the fast growing South Eastern region of the US. This acquisition will significantly strengthen Signet's competitive position in the US jewellery industry and is expected to be earnings enhancing in the current and future years.

Marks & Morgan is a privately owned business for which Signet has agreed to pay $115.0 million (£76.9 million) in cash to acquire all the outstanding share capital. Signet will also repay approximately $45.0 million (£30.1 million) of Marks & Morgan's debt (the actual figure to be determined at completion). The acquisition is conditional on, inter alia, the receipt of US regulatory consents and is expected to be completed within 60 days.

Details of Marks & Morgan's recent financial performance are given below:

		12 months to		12 months to
		31 December 1999		30 June 1999
		(Unaudited)		(Audited)
Sales		$158.1 million		$141.4 million
Operating profit		$15.1 million		$11.1 million
Profit before tax		$11.7 million		$7.5 million
Average sales per store		$1.138 million		$1.063 million
Operating margin		9.6%		7.9%

Marks & Morgan's unaudited net assets at 31 December 1999, were $82.5 million (£55.2 million). Its audited net assets at 30 June 1999, were $74.6 million (£49.9 million) including $65.2 million (£43.6 million) of customer receivables.

The acquisition will substantially increase Signet's presence in a key geographic area of the US in which it is currently under-represented. Marks & Morgan's target customers together with its merchandise mix are similar to Signet's. Approximately 80 stores will be converted to the Kay Jewelers brand. The remaining stores will continue to trade as Marks & Morgan and will be integrated into Signet's division of regional mall stores. The location of Marks & Morgan's stores and those of Signet in the same states are shown in the appendix.

Signet is confident it will obtain considerable commercial benefit from the acquisition which will:

• significantly increase Kay's nationwide representation to circa 628 stores, from 548 stores,

• materially strengthen the Kay brand's competitive position and increase the effectiveness of both Kay and the regional stores' advertising and marketing programmes,

• enhance Marks & Morgan's performance through implementing Signet's proven store management systems and by integrating the buying and merchandising functions,

• generate significant cost savings through combining Marks & Morgan's administration and distribution functions with those of Signet.

Signet currently operates 1,436 speciality retail jewellery stores. These include a total of 832 stores in the US, where the Group's US division trades as "Kay Jewelers", "Jared - The Galleria of Jewelry" and under a number of regional names. Signet operates 604 stores in the UK, where the Group trades as "H. Samuel", "Ernest Jones" and "Leslie Davis".

Enquiries:	Terry Burman, Group Chief Executive	+44 (0)20 7399 9520
	Walker Boyd, Group Finance Director	+44 (0)20 7399 9520
	Lazard	+44 (0) 20 7588 2721
	Paul Kelly	+44 (0) 20 7588 2721
	Susan Gilchrist, Brunswick	+44 (0) 20 7404 5959
	Caroline Roberts-West, Brunswick	+44 (0) 20 7404 5959

This release includes certain forward-looking information that is based upon management's belief as well as on assumptions made by and data currently available to management. This information, which has been, or in the future may be, included in reliance on the "safe harbour" provisions in the Private Securities Litigation Reform Act of 1995, is subject to a number of risks and uncertainties, including but not limited to the factors identified in the Company's 20-F and other documents filed with the Securities and Exchange Commission. Actual results may differ materially from those anticipated in such forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein may not be realised. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

There will be an analyst and institutional investor conference call chaired by Terry Burman at 3.00 pm London time today (10.00 am New York time). The details for the call are:

	European dial-in:	+44 (0) 20 8240 8246
	48 hr replay:	+44 (0) 20 8288 4459	Access code: 675 632
	US dial-in:	+1 800 553 2165
	48 hr replay:	+1 800 625 5288	Access code: 735 143

All US$ figures have been translated at an exchange rate of £1=US$1.4956

APPENDIX
STORE LOCATION
State		Marks & Morgan		Signet				Combined
				Kay		Regional
North Carolina		18		12		-		30
South Carolina		13		3		-		16
Georgia		23		9		-		32
Florida		36		38		3		77
Tennessee		15		9		-		24
Alabama		17		2		-		19
Virginia		7		23		14		44
Kentucky		1		17		8		26
Mississippi		5		-		-		5
Louisiana		2		6		-		8
Total		137		119		25		281
Other States		-		429		231		660
Mall Stores Total		137		548		256		941
Jared Stores								28
Grand Total								969