Statement re Travelodge & Little Chef

28th June 2002

                  COMPASS GROUP PLC: TRAVELODGE & LITTLE CHEF                  

Following a strategic review of Travelodge and Little Chef, Compass Group PLC
has decided to pursue their disposal through separate auction processes, to be
handled by SSSB.

Travelodge is the UK's second-largest budget hotel company with around 12,000
rooms located in key roadside and urban locations in the UK. Little Chef is the
UK's leading roadside restaurant business with 397 outlets across the country.

Michael J. Bailey, Chief Executive, Compass Group, commented:

'Travelodge is a strong brand in the highly attractive market for budget
accommodation. Little Chef has an unparalleled network of sites across the UK.
Both businesses have committed and highly motivated management teams, and
proven growth strategies in place.

'Nonetheless, given Compass Group's strategic focus on contract foodservice,
vending and on selected foodservice concessions, we have taken the view that
neither business is core to Compass Group's strategy going forward, and that it
is appropriate to pursue these disposals.'

                                     Ends                                      

Enquiries

Tim Grey / Simon Sporborg Brunswick 020 7404 5959

Notes to Editors

 1. Compass Group is the world's largest foodservice company with annual
    foodservice revenues in excess of £10bn. Compass Group has over 360,000
    employees working in more than 90 countries around the world providing
    foodservice and hospitality. For more information visit 
    www.compass-group.com
   
 2. Travelodge is the second largest operator in the budget hotel sector,
    providing around 12,000 rooms in 220 hotels located on Britain's trunk road
    and motorway network and major city centres.
   
 3. Little Chef is the largest roadside restaurant chain in Britain with 397
    outlets on the trunk road and motorway network. Every year, more than 30
    million people eat at Little Chef restaurants. Over the past twelve months,
    Compass Group has successfully piloted a brand development programme for
    Little Chef.