MUL Mulberry Group Plc

RNS Number:2853N
Mulberry Group PLC
05 December 2006

MULBERRY GROUP PLC



5 December 2006



RELATED PARTY TRANSACTION



PURCHASE OF MULBERRY STORE ON THE BROMPTON ROAD



Mulberry Company (Sales) Limited (the "Company"), a wholly owned subsidiary of
Mulberry Group plc has purchased the stock and shop fittings of the Mulberry
shop at 171 - 175 Brompton Road, London, and taken over the lease by way of
assignment.



The shop was operated by Mul 21 (UK) Limited (Mul 21) an associated company of
Challice Limited the majority shareholder in Mulberry Group plc, furthermore Mul
21 had a sublease on the shop from Canbe Services Limited another associated
company of Challice.



The total consideration consists of the value of the stock estimated at
#287,000, which is subject to validation by a stock take, plus the fixed assets
including shop fittings purchased for #100,000. The lease will be assigned to
the Company. The current rent is #475,000 per annum. There are currently no
profits attributable to the shop.



The Company has decided to take control of the shop for marketing and
operational reasons. The shopfit will be updated and a new retail system
installed.



The Directors having consulted with the Group's Nominated Adviser, Teather &
Greenwood, are of the opinion that the terms of the transaction are fair and
reasonable insofar as its shareholders are concerned.



There is no further information required to be disclosed under Schedule Four of
the AIM Rules.



Enquiries:



Teather & Greenwood           Tel: 020 7426 9000

Mark Dickenson

Fred Walsh




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

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