Posting of Offer Documents

Compass Group PLC
Granada Group PLC
12 June 2000


Not for release, publication or distribution in or into the USA, Canada,
Australia or Japan

                     Merger of Granada and Compass Group
        Creation of Independent Focused Media and Hospitality Groups

Granada  and  Compass Group are today posting documents to their shareholders
regarding  the  proposals, announced on 17 May 2000, to  create  two  focused
world-class groups:

*  one  of the world's leading hospitality groups, comprising Compass Group's
   existing  businesses  and Granada's hospitality division,  called  Compass
   Hospitality; and

*  a  major  independent  media group, based upon  Granada's  existing  media
   division, called Granada Media.

It  is  intended  that the Proposals will be implemented in two  stages  -  a
merger  between  Granada and Compass Group to create Granada Compass,  to  be
followed by the separation of Compass Hospitality and Granada Media by  means
of  a  demerger of Compass Hospitality.  Following the Demerger, Granada  and
Compass  Group  shareholders will each hold shares in the  separately  listed
hospitality and media businesses.

The  documents posted today relate to the first stage of the Proposals, which
is  the  merger  between  Granada  and Compass  Group.   A  joint  letter  to
shareholders from the Chairmen of Granada and Compass Group is included  that
sets  out  plans  for  Granada Compass, in particular the  strategy  for  the
hospitality  business.   Developments in respect of Granada  Media  are  also
highlighted.

Granada and Compass Group are currently aiming to send documentation relating
to  the second stage, the Demerger, to shareholders by the end of the year to
allow completion early in 2001.

The  documents  include  notices of court meetings and extraordinary  general
meetings  for  the shareholders of Granada and Compass Group to  approve  the
Merger.  These will be held on Wednesday 5 July and proxies should be  lodged
at  the  latest  by  Monday  3  July (precise times  being  set  out  in  the
documentation).   Assuming approval by shareholders and the  satisfaction  of
the  other  conditions  to  the  Merger, the Merger  is  expected  to  become
effective, and trading to commence in Granada Compass shares, on Thursday  27
July 2000.

Subject  to  market  conditions, an IPO of Granada Media is  intended  to  be
launched  before  the  meetings necessary to approve the  Merger  have  taken
place,  including publication of an indicative valuation range.  The  listing
of  the Granada Media shares is expected to take place before the Merger  has
become  effective.  Upon the listing, a minority stake in Granada Media  will
be held by new shareholders.
___________________________________________________________________________

Enquiries

Lazard                                    Schroder Salomon Smith Barney

John Dear                                 Robert Swannell
Nicholas Shott                            David Wormsley
Robert Constant                           Simon Lindsay
020 7588 2721                             020 7658 6000

Citigate Dewe Rogerson                    Hudson Sandler Ltd

Jonathan Clare                            Michael Sandler
Simon Rigby                               Nick Lyon
Chris Barrie                              Wendy Baker
Alex Brown                                020 7796 4133
020 7638 9571




This announcement is made jointly by Granada Group PLC and Compass Group PLC.
Terms defined in the announcement made jointly by Granada Group PLC and
Compass Group PLC on 17 May 2000 shall have the same meanings in this
announcement.

Lazard  Brothers & Co., Limited ('Lazard'), which is regulated in the  United
Kingdom  by  The  Securities and Futures Authority  Limited,  is  acting  for
Granada  and  no  one  else in connection with the Merger  and  will  not  be
responsible  to  anyone  other  than Granada for  providing  the  protections
afforded to customers of Lazard, or for providing advice in relation  to  the
Merger.   Salomon  Brothers  International Limited ('Schroder  Salomon  Smith
Barney'),  which  is  regulated in the United Kingdom by The  Securities  and
Futures  Authority Limited, is acting for Compass Group and no  one  else  in
connection  with the Merger and will not be responsible to anyone other  than
Compass Group for providing the protections afforded to customers of Schroder
Salomon Smith Barney, or for providing advice in relation to the Merger.

This  press release does not constitute an offer of securities. Granada Media
shares have not been and will not be registered under the US securities  laws
and  may  not  be  offered  or  sold  in the  US  absent  an  exemption  from
registration requirements.


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