RNS Number:6585N
ING Bank N.V. London Branch
17 July 2003

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR
FROM THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN



FOR IMMEDIATE RELEASE





17 July 2003





Statement re Proposed offer by Children's Stores Holdings Limited ("Children's
Stores" or the "Company") for Hamleys plc ("Hamleys")

On 27 June 2003 the Board of Children's Stores announced the terms of a cash
offer of 230 pence per Hamleys Share, to be made by ING Investment Banking on
behalf of Children's Stores, for the entire issued and to be issued ordinary
share capital of Hamleys (the "Offer").

On 3 July 2003 Soldier announced an increased offer of 254 pence per Hamleys
Share (the "Revised Increased Offer").  Children's Stores' Offer Price was
driven by the potential synergies of merging Hamleys with the Daisy & Tom chain.
  The Board of Children's Stores has concluded that it would not be commercially
viable for the Company to pay more than 230 pence per Hamleys Share.
Accordingly, as permitted by Note 2 to Rule 2.7 of the City Code and after
consultation with the Panel, the Board of Children's Stores has decided not to
pursue its interest in Hamleys and will not be posting an offer document to
Hamleys Shareholders.

Conditional upon the posting by Soldier to Hamleys Shareholders of an offer
document setting out its Revised Increased Offer and the release of this
announcement, Children's Stores has agreed to sell to Soldier its entire
interest in Hamleys' existing issued share capital amounting to, in aggregate,
3,513,548 Hamleys Shares on the twenty-first day following this announcement.
In addition, in the light of this announcement, the irrevocable undertakings to
accept the Offer from certain of Hamleys' institutional shareholders in respect
of, in aggregate, 940,400 Hamleys Shares will lapse.

Save as otherwise disclosed, as at the date and time of this announcement,
Children's Stores and parties acting in concert with it neither own nor control
any interest in the existing issued share capital of Hamleys.

Commenting on the Board's decision, Tim Waterstone, Chairman of Children's
Stores, said:

"Obviously I am disappointed with what has happened.  Hamleys would have been a
very good fit with Daisy & Tom and would have complemented Daisy & Tom's growth
plans.  However, decisions have to be made for sound economic reasons and even
with the clear synergies between Daisy & Tom and Hamleys it is not commercially
viable for us pay more than 230 pence per Hamleys Share.  I sincerely appreciate
the support of Rhone Capital in this process."


Enquiries:


Bell Pottinger Financial                                                                   Tel: 020 7861 3232
(PR adviser to Children's Stores)
Jonathon Brill
John Coles

ING Investment Banking                                                                     Tel: 020 7767 1000
(Financial adviser and broker to Children's Stores)
Fraser Marcus
Simon Newton



ING Investment Banking, which is authorised in the United Kingdom by the
Financial Services Authority for investment business activities, is acting
exclusively for Children's Stores as financial adviser in relation to the Offer
and is not acting for any other person in relation to such offer.  ING
Investment Banking will not be responsible to anyone other than Children's
Stores for providing the protections afforded to its clients or for providing
advice in relation to the contents of this announcement or any transaction or
arrangement referred to herein.



This announcement does not constitute an offer or an invitation to purchase any
securities.


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