Britannia - Agreements Signed

InterContinental Hotels Group PLC
11 March 2004



                       InterContinental Hotels Group PLC

                 Britannia Soft Drinks - Signing of Agreements

InterContinental Hotels Group PLC ("IHG") is pleased to announce that its soft
drinks subsidiary, Britannia Soft Drinks Limited ("BSD"), has signed agreements
with PepsiCo, Inc. ("PepsiCo") that secure new long-term Exclusive Bottling
Agreements. BSD's existing shareholders have also signed an agreement with BSD
and PepsiCo which creates an opportunity to undertake an initial public offering
("IPO") of BSD.

Renewal of Exclusive Bottling Agreement

BSD has successfully renewed its Exclusive Bottling Agreement with PepsiCo on
broadly similar terms to those of the current agreement. This maintains BSD's
exclusive rights in the Great Britain to the Pepsi and 7UP brands. The agreement
has a term of 15 years and will be automatically extended by a further 5 years
on IPO.

Opportunity for Initial Public Offering

BSD's existing shareholders have agreed to exchange PepsiCo's 10% shareholding
in Britvic Holdings Limited, a subsidiary of BSD, for a 5% share in BSD.  The
existing shareholders will reduce their holdings in BSD on a pro rata basis.


The ownership of BSD is now as follows:

InterContinental Hotels Group                                          47.50%
Allied Domecq                                                          23.75%
Whitbread                                                              23.75%
PepsiCo                                                                 5.00%


BSD's shareholders have also agreed subject, inter alia, to market conditions,
to consider an initial public offering of BSD,  between 1 January 2005 and 31
December 2008.

IHG will continue to control and consolidate BSD.

Richard North, chief executive of IHG and chairman of BSD said, "This is great
news for Britvic, its employees, owners and customers.  Renewal of the bottling
agreement with PepsiCo ensures a steady stream of revenue, assuring Britvic's
long term future."

He continued,  "The option to IPO the business is great news for IHG as it
offers us the opportunity, should market conditions allow,  to realise in full a
very valuable asset and enable us to focus entirely on hotels."

                                     -ends-


For further information , please contact:

Karen Whitworth, Investor Relations                         [phone]
Dee Cayhill, Corporate Affairs                              [phone]
Kathryn Holland, Corporate Affairs                          [phone]


Notes to Editors:

Prior to the introduction of the new agreements, BSD's shareholders were IHG
(50% plus one share), Allied Domecq (25% less half a share) and Whitbread (25%
less half a share).  BSD in turn owned 90% of Britvic Holdings Ltd, with the
remaining 10% (having a net asset value of £22.9 million) held by PepsiCo.

Diagrams of the previous and new structures of Britannia Soft Drinks are
available on our website at http://www.ihgplc.com/britannia .

The Britvic Group is the second largest manufacturer of soft drinks, by volume,
in the UK. The Britvic Group owns an impressive portfolio of soft drinks that
includes Robinsons, Tango, Britvic (juice and mixers), R Whites, Ame, J2O,
Purdey's and Aqua Libra and the exclusive rights in perpetuity to Red Devil (in
the UK and the Republic of Ireland.) The Group also holds the exclusive
franchise rights in Great Britain for the Pepsi and 7UP brands.

The franchise has historically been very successful with Pepsi brand volume
having trebled from 172 million litres in 1987 to 580 million litres in 2003
making Great Britain one of PepsiCo's most successful regions for its Pepsi and
7UP brands. BSD believes there is significant scope for further growth from the
partnership with PepsiCo under the new agreements.






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