Invests In Savoury Site

Greggs PLC
28 January 2005

                                                               28th January 2005

                                   GREGGS plc

         Invests £13 million in second Savoury Facility in North East.


Due to continued growth in sales of sausage rolls and pasties, Greggs plc is
delighted to announce that it will be investing £13 million in a second central
savoury facility in the North East. This will be located on the Balliol Park
site at Longbenton, in close proximity to the highly successful first factory it
opened in 1998.

The new facility will be of a similar design and equipped with the same leading
edge equipment and processes as used in the existing factory.

This investment will progressively create over 50 new jobs and provide
additional capacity for the continued growth of the group's very successful
range of savouries, in line with its ambitious business plans.

Greggs has been supported with a £250,000 Selective Finance for Investment grant
by One NorthEast, which has been closely involved in making the case for Greggs'
investment in the region.

North Tyneside Council and the Tyne and Wear Development Company also worked
closely with Greggs to secure this major new investment.

Greggs' Group Managing Director Sir Michael Darrington said "As we invest and
grow our business throughout the country, it is particularly pleasing to be able
to announce this major investment in the North East where the business started
and our head office is based".

Group Production Director Nigel Oldham said "This new factory will build on the
success of our original facility which is already at the forefront of technology
and efficiency.  The new facility will be built during 2005 in readiness to be
brought on stream in 2006.  This is another exciting chapter in the history of
Greggs plc and the North East and will be a major step towards the company's
mission to be one of Europe's finest companies.

"The additional capacity will enable the company to meet the continuously
growing demand for our freshly baked savouries in all Greggs and Bakers Oven
shops across the country".

Alan Clarke, One NorthEast Chief Executive, said: "This investment by Greggs in
a major new facility is a real North East success story and one that we are
delighted to have played some part in.

"This new facility will allow the company to meet customer demand and create 50
new jobs with all the benefits they will bring to the regional economy."


ENQUIRIES:
Greggs plc                             gcg hudson sandler/keithhann.com
Malcolm Simpson, Financial Director    Wendy Baker/James Hill Tel: [phone]
Nigel Oldham, Production Director      Keith Hann             Tel: [phone]
Tel: [phone]



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