Marks & Spencer announced today that many of its store staff are set to share a total of £40m through gains made in the Company's Sharesave schemes.

The increase in Marks & Spencer's share price to around £5 means that over 11,500 employees who participated in the three schemes (a seven year, five year and three year scheme) which are maturing this month will gain an average of £3,500 per person.

For example, employees who saved the maximum amount of £250 per month in the five year scheme starting in 2000 could make a gain of £39,085 at a share price of £5, a return of 260% on their original investment of £15,000. The average amount saved in this scheme was £50 per month, giving a gain of £7,815 on an investment of £3,000.

Marks & Spencer has offered employees the opportunity to share in the progress of the Company through Sharesave schemes for over 20 years. Employees save on a monthly basis for a fixed term, mainly for either three or five years, and use their savings, plus a bonus, to buy shares at the market price at the beginning of the savings period, discounted by 20%. At present, over 22,000 M&S employees, the majority of whom work in stores, are members of the scheme.

Stuart Rose, Marks & Spencer's Chief Executive, said: "We are delighted that many of our employees who have shown their faith in our business are able to reap the benefits of their hard work."

Marilyn Myers, from Edgware Broadwalk store, made the maximum gain from her savings. She said: "I am thrilled to have made this money from my Sharesave scheme. It means I can make exciting plans for the future."

Louisa Dmello, from Croydon store, also made the maximum gain from her savings. She said: "This is fantastic. I love going on cruises and now I can plan the world cruise I have always dreamed about."

For further information, please contact:
Marks & Spencer Corporate Press Office - 020 8718 1919

Notes to Editors

The three Sharesave schemes maturing in January 2006 are:

• 1998 - 7 year scheme (Option Price £3.24)
• 2000 - 5 year scheme (Option Price £1.56)
• 2002 - 3 year scheme (Option Price £2.83)

• Photographs of the two employees quoted can be downloaded from the General section in our Image Library at www.mandslibrary.com

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