First Quarter Highlights

-- Significant progress made towards achieving financial objectives for fiscal 2010(1)

-- Operational initiatives increasing profitable market share in a consolidating sector

-- Same store sales: down 2.9% compared to a decline of 14.9% in Q4 fiscal 2009(1)

-- Total sales: $762.6 million, down 1.1% at constant exchange rates(2)

-- Increased gross merchandise margin in US and UK

-- Income before income taxes: $41.4 million, up 3.2%

-- Basic and diluted earnings per share $0.31

-- Free cash inflow towards the top end of the $175 million to $225 million range now expected for fiscal 2010

(1) Fiscal 2009 is the year ended January 31, 2009 and fiscal 2010 is the year ending January 30, 2010.

(2) See note 12.

Terry Burman, Chief Executive, Signet Jewelers commented: "We have had a good start to the year reflecting the impact of our operational initiatives, and have made significant progress towards achieving our financial objectives for fiscal 2010. The retail environment remains very uncertain therefore we will continue to execute our strategy of enhancing Signet's position as the strongest middle market specialty jeweler, strengthening our balance sheet by maximizing profits and cash flow, and reducing business risk."

Enquiries Terry Burman, Chief Executive, Signet

Jewelers +1 441 296 5872

Walker Boyd, Finance Director, Signet

Jewelers +1 441 296 5872

Michael Henson, Taylor Rafferty +1 212 889 4350

Jonathan Glass, Brunswick +44 (0)20 7404 5959

Signet Jewelers Ltd is the world's largest specialty retail jeweler and operated 1,957 stores at May 2, 2009; these included 1,400 stores in the US, where it trades as "Kay Jewelers", "Jared The Galleria Of Jewelry", and under a number of regional names. At that date the Group operated 557 stores in the UK, where it trades as "H.Samuel", "Ernest Jones", and "Leslie Davis". Further information on Signet is available at www.signetjewelers.com. See also www.kay.com www.jared.com www.hsamuel.co.uk and www.ernestjones.co.uk.

Conference call

A conference call will take place for all interested parties today at 9.00 a.m. EDT (2.00 p.m. BST) with a simultaneous audio webcast on www.signetjewelers.com The call details are:

European dial-in: +44 (0)20 7806 1950

US dial-in: +1 718 354 1385

European replay until June 8: +44 (0)20 7806 1970

Access code: 6934146#

US replay until June 8: +1 718 354 1112

Access code: 6934146#

Group performance

During the first quarter Signet made good progress towards achieving its strategic and financial objectives for fiscal 2010. These are:

Strategy

-- Enhance position as strongest middle market specialty retail jeweler

-- Focus on profit and cash flow maximization to further strengthen balance sheet

-- Reduce business risk

Financial Objectives

-- $100 million US cost reduction program

-- Significant working capital reduction

-- Reduce capital expenditure by about 50%, to some $55 million

-- $175 million to $225 million cash inflow before financing activities

Same store sales decreased by 2.9%, an encouraging performance compared to the fourth quarter of fiscal 2009. Total sales fell by 7.3% to $762.6 million (13 weeks to May 3, 2008: $822.5 million) reflecting an underlying decrease of 1.1% at constant exchange rates (see note 12). The average US dollar rate was pounds Sterling 1/ $1.45 (13 weeks to May 3, 2008: pounds Sterling 1/$1.98). Operating income increased 14.2% to $52.4 million (13 weeks to May 3, 2008: $45.9 million), up by 13.4% at constant exchange rates (see note 12). This included a favorable impact of $4.0 million from a previously announced change in US vacation policy. Operating margin was 6.9% (13 weeks to May 3, 2008: 5.6%). Income before income tax rose by 3.2% to $41.4 million (13 weeks to May 3, 2008: $40.1 million). The tax rate was 36.5% (13 weeks to May 3, 2008: 36.0%). Basic and diluted earnings per share were $0.31 (13 weeks to May 3, 2009: $0.30).

US division (circa 80% of annual sales)

Total sales were down by 1.0% at $624.9 million (13 weeks to May 3, 2008: $631.1 million). The division gained profitable market share as a result of operational initiatives in a sector that in the past year experienced an accelerated level of capacity reduction. Same store sales decreased by 2.6%, reflecting a significant improvement in trend from the fourth quarter of fiscal 2009, although the trading environment remained very challenging. Valentine's Day trading was stronger than the rest of the period, with the performance of differentiated merchandise being beneficial to both sales and gross merchandise margin. Average unit selling price decreased by 9% in the mall brands and, on an underlying basis, by 7% in Jared, excluding the impact of a new merchandising program. While Kay achieved an increase in same store sales, Jared was adversely affected by the general weakness in expenditure among households with above average incomes.

Operating income increased by 20.8% to $56.4 million (13 weeks to May 3, 2008: $46.7 million) including the impact of $4.0 million from the change in vacation policy. Gross merchandise margin was up 90 basis points, benefiting from price increases implemented during the first quarter of fiscal 2009 and favorable changes in the sales mix, offsetting a higher cost of gold and greater promotional cadence. It is anticipated that the gross merchandise margin for fiscal 2010 will be at least at the level of fiscal 2009, however this is subject to future movements in commodity costs. The division made good progress towards achieving the fiscal 2010 target of reducing the underlying cost base by $100 million (excluding inflation, net bad debt and volume related costs on sales above plan), the reduction in the quarter being $32 million. Reflecting the economic environment, the net bad debt to total sales ratio was up by 130 basis points. The division's operating margin was 9.0% (13 weeks to May 3, 2008: 7.4%).

UK division (circa 20% of annual sales)

Total sales were down by 1.8% at constant exchange rates (see note 12) and by 28.1% as reported to $137.7 million (13 weeks to May 3, 2008: $191.4 million). Same store sales fell by 4.2%, with H.Samuel down 2.0% and Ernest Jones 6.7%. The division's performance was a little weaker towards the end of the period. There was an operating loss of $1.3 million (13 weeks to May 3, 2008: $3.5 million operating income) reflecting deleverage due to the decline in same store sales, partly offset by a 40 basis points improvement in gross merchandise margin. Selective price increases more than offset the increased cost of gold and an increase in promotional cadence. It is anticipated that the gross merchandise margin for fiscal 2010 will be somewhat lower than that of fiscal 2009. In sterling terms, there was a small increase in costs in the quarter largely due to property expenses, and the division remains on target to achieve stable costs for the year as a whole.

Central and Financing Costs

Central costs were $2.7 million (13 weeks to May 3, 2008: $4.3 million), reflecting the impact of the change in the average exchange translation rate and a gain on foreign exchange.

Financing costs rose to $11.0 million (13 weeks to May 3, 2008: $5.8 million) as a result of fees during the quarter of $3.4 million associated with the previously announced amendment to the borrowing agreements, the higher level of year end debt and increased interest rates under the new facilities. The balance of amendment fees ($5.9 million) will be amortized over the expected term of the borrowing agreements.

Cash Flow and Net Debt

Partly assisted by timing differences, the quarter saw a very significant improvement in "free cash flow" (cash inflow from operating activities less cash used in investing activities and amendment fees). The free cash flow was $181.2 million in the 13 weeks to May 2, 2009 (13 weeks to May 3, 2008: $3.4 million outflow). Inventories decreased by $43.2 million (13 weeks to May 3, 2008: $48.7 million increase) as a result of a better than expected sales performance, planned inventory reductions and meaningful timing differences. Accounts receivable reduced by $55.3 million (13 weeks to May 3, 2008: $62.0 million), with the decline in sales in the US division being partly offset by a little slower collection rate. There was an increase in accounts payables of $65.9 million (13 weeks to May 3, 2008: $8.8 million), reflecting the low level of payables at the start of the quarter. Net capital expenditure was $8.4 million (13 weeks to May 3, 2008: $25.4 million) as a result of a planned full year reduction to about $55 million. For fiscal 2010, free cash inflow is expected to be towards the top end of the $175 million to $225 million range indicated in the fiscal 2009 annual report, subject to general economic uncertainties.

Net debt at May 2, 2009 was $290.2 million (May 3, 2008: $377.0 million) (see note 13). During the quarter, amended borrowing agreements were entered into, the details of which were announced on March 16, 2009. The amended agreements provide Signet with additional financial flexibility until 2013 and more appropriately structured the borrowing facilities, including the prepayment of $100 million of the private placement notes at par.

Investor Relations Program Details

Annual general meeting

The annual general meeting is to be held at 11.00 a.m. on June 16, 2009 at the Hilton Akron/Fairlawn, 3180 West Market Street, Akron, Ohio, 44333, USA.

Second quarter sales

The second quarter sales performance for the 13 weeks ending August 1, 2009 is expected to be announced on Thursday, August 6, 2009.

Second quarter results

The second quarter results for the 13 weeks ending August 1, 2009 are expected to be announced on Wednesday, September 9, 2009.

Goldman Sachs 16th Annual Global Retailing Conference in New York

Signet will be presenting at the Goldman Sachs 16th Annual Global Retailing Conference taking place in New York on Thursday, September 10, 2009. The presentation, which will also be webcast on www.signetjewelers.com, will be given by Terry Burman, Chief Executive. Terry Burman and Walker Boyd, Finance Director, will also be available for one-on-one meetings.

This release includes statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management's beliefs as well as on assumptions made by and data currently available to management, appear in a number of places throughout this release and include statements regarding, among other things, our results of operation, financial condition, liquidity, prospects, growth, strategies and the industry in which Signet operates. Our use of the words "expects," "intends," "anticipates," "estimates," "may," "forecast," "objective," "plan" or "target," and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, including but not limited to general economic conditions, the merchandising, pricing and inventory policies followed by management, the reputation of the business, the level of competition in the jewelry sector, the price and availability of diamonds, gold and other precious metals, seasonality of the business and financial market risk.

For a discussion of these and other risks and uncertainties which could cause actual results to differ materially, see the "Risk Factors" section of the Company's fiscal 2009 annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 1, 2009 and other filings made by the Company with the Commission. Actual results may differ materially from those anticipated in such forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein may not be realized. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

Unaudited condensed consolidated income statements

for the 13 weeks ended May 2, 2009

__ 13 weeks__ 13 weeks

__ ended__ ended

__ May 2, 2009__ May 3, 2008

__ $m__ $m__ Notes

Sales__ 762.6__ 822.5__ 2

Cost of sales__ (507.1)__ (544.8)

Gross margin__ 255.5__ 277.7

Selling, general and administrative expenses__ (232.8)__ (261.7)

Other operating income, net__ 29.7__ 29.9

Operating income__ 52.4__ 45.9__ 2

Interest income__ 0.6__ 1.7

Interest expense__ (11.6)__ (7.5)

Income before income taxes__ 41.4__ 40.1

Income taxes__ (15.1)__ (14.4)

Net income__ 26.3__ 25.7

Earnings per share - basic__ $0.31__ $0.30__ 5

- diluted__ $0.31__ $0.30__ 5

All of the above relate to continuing activities attributable to equity

shareholders.

The accompanying notes are an integral part of these unaudited condensed

consolidated financial statements.

Unaudited condensed consolidated balance sheets

at May 2, 2009

__ May 2, May 3,__ Jan. 31,

__ 2009__ 2008__ 2009

__ $m__ $m__ $m__ Notes

Assets

Current assets:

Cash and cash equivalents__ 69.2__ 29.2__ 96.8

Accounts receivable, net__ 770.1__ 787.4__ 825.2

Other receivables__ 65.0__ 33.5__ 81.8

Other current assets__ 58.0__ 25.9__ 45.0

Inventories__ 1,327.1__ 1,516.0__ 1,364.4__ 6

Total current assets__ 2,289.4__ 2,392.0__ 2,413.2

Non-current assets:

Property, plant and equipment, net of

accumulated depreciation of $575.8

million, $658.0 million and $572.6

million, respectively.