TR-1 NOTIFICATION OF MAJOR INTERESTS IN SHARES

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached:

Debenhams plc

2.    Reason for the notification     

Settlement of the total return swap arrangement over 57,547,879 ordinary shares between Baugur Group hf and UBS AG.

3.    Full name of person(s) subject to the notification obligation:

Baugur Group hf

4. Full name of shareholder(s) (if different from 3.):

UBS AG

5. Date of the transaction (and date on which the threshold is crossed or reached if different):

8 July 2008

6. Date on which issuer notified:

14 July 2008

7. Threshold(s) that is/are crossed or reached

3% threshold crossed on 8 July 2008

8. Notified details:

A: Voting rights attached to shares

N/A

B: Financial Instruments

N/A

Total A +B

0

9.  Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable.

Baugur Group hf (6.57%)

Proxy Voting:

10. Name of the proxy holder:

N/A

11. Number of voting rights proxy holder will cease to hold:

N/A

12. Date of which proxy holder will cease to hold voting rights:

N/A

13. Additional Information:

The notification is being made as a result of the settlement of the total return swap arrangement between Baugur Group hf. and UBS AG.

14. Contact Name:

Paul Eardley

Company Secretary

15. Contact telephone number:  

020 7408 3529

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