RNS Number:4997S
Coles Myer Ld
26 November 2003

Coles Myer Ltd.

ABN 11 004 089 936

800 Toorak Road, Tooronga, 3146

Telephone (03) 9829 3111

Facsimile (03) 9829 6787

Postal Address: PO Box 2000, Glen Iris, 3146

News Release

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26 November 2003

                          Coles Myer earnings guidance

Coles Myer's underlying full year earnings were expected to rise by 20-23% to
$548-$558 million during financial year 2004, CEO John Fletcher told the Annual
General Meeting in Melbourne today.

Mr Fletcher said that net of supply chain implementation costs, this would mean
earnings in line with market expectations of $520-$530 million, subject to
satisfactory Christmas trading conditions.

Mr Fletcher told shareholders that Group sales in the second quarter to last
weekend were up by 12.1%. In Food & Liquor, comparative store sales were
strengthening, in line with expectations, and this trend was expected to
continue as the Coles Express fuel offer was launched in New South Wales, the
ACT and Tasmania on 1 December.

"It has been a good start to the year," he said.

With the underlying performance of the Group now clearly improving, Coles Myer
was in a position to reinvest in its business for the long-term.

The five-year transformation of Coles Myer's information technology systems and
supply chain would incur net cost in the early stages to reap benefits which
would increase as the change progressed.

"We have previously flagged to the market a net annual cost of $40 million
before tax for the initial stage of the supply chain transformation, the very
significant benefits from which will flow in future years," Mr Fletcher said.

"Having said that, we are committed to delivering significant annual earnings
improvement even after the $40 million before tax.

"We are committed to unlocking the full potential of our combined businesses for
our customers and for you, our shareholders, for the first time in Coles Myer's
history," Mr Fletcher said.

Further enquiries:

Media        Scott Whiffin      03 9829 5548

Analysts     Amanda Fischer     03 9829 4521


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