Respective responsibilities of directors and auditors

The directors are responsible for preparing the Annual Report and Form 20-F. As described in the Statement of Directors' Responsibilities, this includes responsibility for preparing the accounts in accordance with applicable United Kingdom law and accounting standards. The directors have also presented additional information under US requirements. Our responsibilities, as independent auditors, are established by statute in the United Kingdom, auditing standards generally accepted in the United Kingdom and in the United States, the Listing Rules of the United Kingdom Financial Services Authority, the United States Securities and Exchange Commission and by our profession's ethnical guidance.

We report to you our opinion as to whether the accounts give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the director's report is not consistent with the accounts, if the Company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law or the Listing Rules regarding directors' remuneration and transactions with the Group is not disclosed.

We review whether the corporate governance statement reflects the Company's compliance with the seven provisions of the Combined Code specified for our review by the Listing Rules, and we report if it does not. We are not required to consider whether the Board's statements on internal control cover all risks and controls, or form an opinion on the effectiveness of the Group's corporate governance procedures or its risk and internal control procedures.

We read other information contained in the Annual Report and Form 20-F and consider whether it is consistent with the audited financial statements. This other information comprises only the chairman's statement, group chief executive's review, five year financial summary, the US and UK operating review, group employees, description of property, financial review, risk and other factors, directors' officers and advisers, report of the directors, the corporate governance statement, board report on remuneration, statement of directors' responsibilities, statement on social ethical and environmental matters, shareholder information, selected financial data and quarterly results. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.

Basis of audit opinion

We conducted our audit in accordance with auditing standards generally accepted in the United Kingdom and in the United States. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the accounts. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the accounts, and of whether the accounting policies are appropriate to the Group's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the accounts are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the accounts. We believe that our audit process provides a reasonable basis for our opinion.

The maintenance and integrity of the Signet Group plc web site is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the web site.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

United Kingdom opinion

In our opinion the accounts give a true and fair view of the state of affairs of the Company and the Group as at 2 February 2002 and of the profit of the Group for the 53 week period then ended and have been properly prepared in accordance with the Companies Act 1985.

United States opinion

In our opinion the consolidated accounts present fairly, in all material respects, the financial position of the Group at 2 February 2002 and 27 January 2001 and the results of its operations and its cash flows for the 53 week period ended 2 February 2002, and the 52 week periods ended 27 January 2001 and 29 January 2000 in conformity with generally accepted accounting principles in the United Kingdom.

Generally accepted accounting principles in the United Kingdom vary in certain significant respects from generally accepted accounting principles in the United States. Application of generally accepted accounting principles in the United States would have affected the results of operations for the 53 week period ended 2 February 2002, and the 52 week periods ended 27 January 2001 and 29 January 2000 and shareholder's equity at 2 February 2002 and 27 January 2001 to the extent summarised in the summary of differences noted between UK and US generally accepted accounting principles.

KPMG Audit Plc
Chartered Accountants, Registered Auditor
London
10 April 2002