Ashley (Laura) Hldgs PLC
30 November 2006


30 November 2006


                           LAURA ASHLEY HOLDINGS plc
                                ('the Company')



            Result Of Arbitration Proceeding Concerning L'Oreal S.A


Laura Ashley Holdings plc announces the result of the Final Arbitral Award in
the matter of an arbitration under the rules of the International Chamber of
Commerce between L'Oreal and two of the Company's subsidiaries.


The dispute concerned a 20-year licence granted in 1996 by the Laura Ashley
companies to L'Oreal, which was arbitrarily terminated by L'Oreal in 2002. On 19
October 2004, the Company announced that after considering the parties'
respective claims, the Tribunal had ruled in favour of the Laura Ashley
companies on the issue of liability. L'Oreal's purported termination of the
licence was found by the Tribunal to be invalid. The questions of costs and
compensatory damages were left for the final phase of the proceedings.


In the Final Arbitral Award, the Tribunal determined that the Laura Ashley
companies should be awarded an amount of £2.9 million plus interest. Assuming
the award is paid by the end of December 2006, the amount of interest is
expected to be in the region of £0.6 million. In total, the Company has incurred
legal and other costs of £3.8 million which have been treated as a prepayment in
the balance sheet. In addition, the Company has a royalty debtor due from
L'Oreal in the amount of £0.7 million.


Albeit with some important trading weeks still to come, the Company remains
pleased with performance in the year to date.



Enquiries:



David Cook      Finance Director & Company Secretary         020 7880 5100



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