RNS Number:3327Q
Woolworths Group PLC
30 January 2007




     Entertainment UK Limited ("EUK") appointed to supply entertainment and
              associated products to Virgin Retail Limited ("VRL")


Woolworths Group plc announces that its entertainment wholesaling subsidiary,
EUK has reached agreement to supply Virgin Retail Limited with entertainment and
associated products.

EUK has been awarded a three-year contract and will assume responsibility for
buying VRL's core entertainment categories of Music, DVD, Games and Books as
well as peripheral categories from 1 June 2007. There will be a phased migration
prior to that date that will include transfer of key VRL personnel to EUK. EUK
will take responsibility for physical distribution to VRL's retail stores no
later than April 2008.

The new contract represents an innovative approach to the management of a large
scale specialist entertainment retailer in that it combines EUK's buying and
supply chain expertise with VRL's retailing and brand expertise. VRL operate 127
stores in the UK and Republic of Ireland.

Following the announcement in January 2006 that EUK would cease to supply Tesco
with Music, DVDs, and Games from mid 2007, EUK has sought to restore sales
volume and diversify its business by increasing its customer base and moving
into new markets. The acquisition, in September 2006, of THE Distribution and
more recently the agreement to purchase Bertram Group, a books wholesaler, were
both important steps in achieving those aims and will bring additional turnover
in excess of #400m. The VRL contract is further evidence of progress in
developing a truly world class entertainment distribution business. As a result,
EUK's turnover is expected to be in excess of #1.2bn per annum.

Commenting on EUK's appointment, Woolworths Group Chief Executive, Trevor
Bish-Jones said:

"EUK is extremely excited to be working with Virgin, one of the strongest brands
in the world and one of the most vibrant names on the High Street. The new
contract strengthens EUK and is another important milestone in the development
of the business."


Enquiries to:

Stephen East, Group Finance Director, Woolworths Group plc      020 7479 5179

Kirstie Hamilton, Tulchan Communications                        020 7353 4200

Celia Gordon Shute, Tulchan Communications                      020 7353 4200




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            The company news service from the London Stock Exchange
END

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