DGC Dobbies Garden

RNS Number:6850J
Dobbies Garden Centres PLC
10 September 2001


                    DOBBIES GARDEN CENTRES PLC ("DOBBIES")

        Acquisition of Cross Lanes Farm Garden Centre ("Cross Lanes")

Dobbies today announces the acquisition of the business, fixed assets and
stock from Cross Lanes Farm Garden Centre Ltd and certain related partnership
interests. The consideration payable is #4.3M in cash. Simultaneously, Dobbies
is raising a further #2M of cash by way of a placing of 481,928 new ordinary
shares at 415p per share with new institutional investors. The acquisition is
subject to a number of conditions being fulfilled and completion is expected
to take place on 27 September 2001.

Cross Lanes owns and operates a retail garden centre located at Atherstone,
Warwickshire. The garden centre is situated upon a site of some 50 acres and
comprises a retail store of approximately 70,000 square feet of covered sales
area together with storage. The remainder of the site is presently given over
to woodland, lakes and agricultural land. The acquisition includes two
residential buildings. Cross Lanes has been owned by and is being sold by Mr
and Mrs John Dawson and their family. The family members will resign following
completion of the sale to Dobbies. All other staff will be taken on by
Dobbies.

Cross Lanes Farm Garden Centre Ltd is a recently formed company and has
therefore no historical trading record. Accounts for the Cross Lanes
Partnership business for the year to December 1999 showed a pre-interest
profit of #202,000. On this basis and making allowance for other central
overhead savings, Dobbies believes Cross Lanes should, in normal trading
circumstances, make a positive contribution to earnings per share.

Dobbies, however, plans further development at Cross Lanes, chiefly by
improvements to the covered retail space, improvements to the product range,
and the introduction of destination-leisure attractions. Cross Lanes already
serves a population of some 650,000 mainly from the nearby towns of Hinckley,
Nuneaton and Tamworth, but has the potential to serve a much larger area
comprising North East Birmingham, Coventry and Leicester.

Dobbies have completed two major store redevelopments this Spring both of
which are trading successfully. The existing business has continued to trade
strongly over the summer season and like for like sales are now up 13%.

James Barnes commented :

"This is an exciting acquisition for us. It fits well with our existing store
portfolio in the Midlands and fulfils our strategy of acquiring large
destination centres with growth potential.

"John and June Dawson have built up an excellent business and we look forward
to building on their success."

Enquiries :
Dobbies Garden Centres plc                  Bell Pottinger Financial
James Barnes, Chief Executive               Jonathon Brill
Sharon Brown, Finance Director              Caroline Sturdy
Tel : 0131 663 6778                         Tel : 020 7353 9203

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