DGC Dobbies Garden

RNS Number:2735C
Dobbies Garden Centres PLC
16 August 2007


Dobbies Garden Centres plc ("Dobbies")


Clarification re press comment


Today's edition of the Daily Mail contained the following comments attributed to
James Barnes, chief executive of Dobbies:


(Explaining why retail investors should sell their shares): "From my research
it's the highest exit multiple paid for a retail business in the last 30 years";
and


(Warning those who might choose to retain their Dobbies shares in the
expectation of a better deal): "The future dividend would be questionable as we
are probably going to use our cash to expand".


The Board of Dobbies wishes to clarify the above statements:


The Board confirms that the Offer from Tesco Holdings represents the highest
multiple of EBITDA paid in recent quoted transactions in the UK retail sector
other than in a distressed sale. However, the Board does not have access to
supporting evidence to substantiate this comment over a timescale of 30 years.


As explained in James Barnes' statement within the Annual Report and Accounts
for the year ended 30 October 2006, the Board's ambition is to raise the growth
rate of the business through new site developments, by acquisitions as and when
appropriate and via the internet. The financial cost of generating growth in
sales was evident in the previous financial year when capital investment in the
business totalled #25.5 million. However, the Board has not at this stage agreed
formally either its future business development plan (other than development
expenditure to which the Group is already committed) or its future dividend
strategy in the event that the Offer from Tesco Holdings is unsuccessful. As a
result, the comments referred to above regarding future dividends should be
ignored.


The Board of Dobbies emphasises that shareholders should rely solely upon
statements contained within the Offer document issued on behalf of Tesco
Holdings and in subsequent formal communications with them in determining what
action to take in connection with the Offer.


Enquiries:

Dobbies
James Barnes
Sharon Brown                                                        
Tel:          0131 663 6778

Deloitte Corporate Finance (Financial Adviser to Dobbies)
Cahal Dowds
Roger Esler                                                           
Tel:          0131 535 7342

Bell Lawrie (Nominated Adviser and Joint Broker to Dobbies)
Sandy Fraser                                                         
Tel:          0131 225 2566


Shore Capital (Joint Broker to Dobbies)
Alex Borrelli 
Tel:          020 7468 7932


Bell Pottinger Corporate & Financial (PR Adviser to Dobbies)
Ben Woodford
Emma Kent
Antonia Coad 
Tel:          020 7861 3232


The Directors of Dobbies accept responsibility for the information contained in
this announcement. To the best of the knowledge and belief of the Directors (who
have taken all reasonable care to ensure that such is the case), the information
contained in this announcement for which they accept responsibility is in
accordance with the facts and does not omit anything likely to affect the import
of such information.


Deloitte Corporate Finance is acting exclusively for Dobbies and for no-one else
in connection with the Offer and will not regard any other person as its client
nor be responsible to anyone other than Dobbies for providing the protections
afforded to the clients of Deloitte Corporate Finance nor for providing advice
in relation to the Offer or any matter referred to in the Offer Document or this
announcement. Deloitte Corporate Finance is a division of Deloitte & Touche LLP,
which is authorised and regulated by the Financial Services Authority in respect
of regulated activities.


Bell Lawrie, a division of Brewin Dolphin Securities Limited, which is
authorised and regulated in the United Kingdom by the Financial Services
Authority, is acting exclusively for Dobbies and no-one else in connection with
the Offer and will not be responsible to anyone other than Dobbies for providing
the protections afforded to clients of Bell Lawrie nor for providing advice in
relation to the Offer or this announcement.


The Offer (including the Loan Note Alternative) is not being made, directly or
indirectly, in or into, and is not capable of acceptance in or from, Canada,
Australia or Japan. Accordingly, copies of the Offer Document, the Form of
Acceptance, this announcement and any related documents are not being, and must
not be, mailed or otherwise forwarded, distributed or sent in or into or from
Canada, Australia or Japan. Custodians, nominees and trustees should observe
these




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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