Disposal

Compass Group PLC
25 May 2001

                                                                   25 May 2001



                     COMPASS GROUP PLC ('COMPASS GROUP')

                    SALE OF LE MERIDIEN HOTELS FOR £1.9BN

             ENTIRE FORTE HOTEL PORTFOLIO NOW SOLD RAISING GROSS

                          PROCEEDS OF £3.26BN


Compass Group is pleased to announce the agreement for the sale of Le Meridien
Hotels to Grand Hotels (M) Acquisition Company I Limited, a company formed by
the Principal Finance Group of Nomura International plc, for a cash
consideration of £1.9 billion.  This disposal will successfully conclude the
sale process for the Forte Hotel division brands of Le Meridien, Posthouse,
Heritage and London Signature, which will in aggregate have generated total
gross proceeds for the Group of £3.26 billion.

Completion is expected to take place in approximately six weeks and is
conditional upon receipt of certain regulatory consents.

The proceeds of the hotel disposals will primarily be used to strengthen the
Group's balance sheet and to fund strategic in-fill acquisitions.  The Company
recognises the importance of maintaining an efficient balance sheet and it
will therefore continue to review this against all opportunities for
delivering shareholder value.

Francis Mackay, Chairman, Compass Group, said; 'We are delighted to have
successfully concluded the sale of the Forte Hotel division, and look forward
to being able to invest in the further growth and development of Compass
Group.'  Commenting on the auction process he noted, ' The auction process has
enabled us to deliver the best possible return for our shareholders.'

Over the past six months Compass Group has already re-invested over £1.1
billion in its core foodservice market through a number of transactions,
including the acquisition of Levy Restaurants in Chicago, USA, Beaver Foods in
Canada, Morrison Management Specialists in the USA and the remaining shares in
Selecta in Switzerland and joint venture agreements in the Middle East and
Japan.

Michael J Bailey, Chief Executive, Compass Group, said: 'I am delighted that
we have already been able to invest part of the proceeds of the hotel disposal
in developing the Group within our core foodservice markets.  These
strategically important moves have significantly strengthened our position in
US healthcare foodservice, European vending and in the Middle East and Japan.
Our strong financial position makes us ideally placed to exploit the
attractive opportunities available to supplement our sustained organic growth
with further tactical in-fill acquisitions.'

In making the announcement Francis Mackay and Michael J Bailey thanked the
staff and management teams of the hotel brands and of the Forte Hotel
division.  Michael J Bailey added, 'The professionalism and commitment of
Antoine Cau, Chief Executive of Forte Hotels, and his team has been exemplary
throughout this process and I would like to thank them all for their support.'

Le Meridien is one of the leading international luxury hotel chains in the
World, providing a world-wide network of 4 and 5 star hotels in key city and
resort destinations in over 55 countries, with in excess of 40,000 rooms.   In
the year to 30th September 2000, Le Meridien generated an operating profit
after central costs of £170m on sales of £493m.  It had net assets of £1.26bn
as at 31st March 2001.  The price achieved represents a multiple of
approximately ten times historic EBITDA after central costs.



Ends

Enquiries

Compass Group PLC                         01932 573 000
Michael J Bailey, Chief Executive
Andrew Lynch, Group Finance Director
Cathi Lawrence, Corporate Communications Director



Hudson Sandler                            020 7796 4133
Nick Lyon/Wendy Baker



Notes



1.        Compass Group is now the world's largest foodservice company with
proforma annual revenues in excess of £8bn, employing in excess of 265,000
people worldwide in over 90 countries.  The Group's strategy continues to be
one of achieving strong revenue growth in the £200bn foodservice market
through the development of its sector-focused businesses and the use of its
unique portfolio of foodservice brands, growing both organically and through
strategic in-fill acquisitions.  For further information visit the Group's
website: www.compass-group.com



2.      Le Meridien:  Of the hotels, 38 are owned on a freehold or leasehold
basis, 77 are operated under management contracts, 13 are franchises and 22
operate through a strategic alliance with Nikko Hotels International Limited.
For further information visit www.lemeridien-hotels.com