Bond Issue

Mitchells & Butlers PLC
12 September 2006



12 September 2006

                   NOT FOR DISTRIBUTION IN THE UNITED STATES


                            MITCHELLS & BUTLERS PLC

                               £1.1bn BOND ISSUE

Mitchells & Butlers today announces that the terms of the bond issue launched on
31 August have been finalised. The total amount to be raised is £1.1bn, £655m of
which is incremental financing and the balance of £450m will be used to
refinance existing sterling and dollar denominated Floating Rate Notes.
The average cash interest cost on the new bonds will be 5.4%.

As a result, the total securitised debt of Mitchells & Butlers will increase to
£2.46bn and the overall cash interest cost of this debt will reduce to
approximately 5.7% before tax.

Completion and issue of the bonds is expected to take place on Friday 15
September.

As previously stated, following completion of the bond issue, Mitchells &
Butlers will pay a special dividend of £1 per share, amounting to approximately
£486m, to shareholders, which will be accompanied by a proportionate
consolidation of the shares in issue.

An Extraordinary General Meeting of shareholders will be held to approve the
proposed share consolidation accompanying the special dividend. Full details
will be provided in a circular to shareholders. It is currently anticipated that
the circular will be posted before the end of September and that the special
dividend will be paid before the end of October.

Commenting on the issue, Karim Naffah, Finance Director said:

'We have had an excellent response to our bond issue. The strong operational
performance of our pub estate and the resulting property appreciation have
enabled us to raise additional debt on attractive terms. This allows us to make
a further substantial cash return to shareholders, in addition to the
acquisition of 239 pub restaurants successfully concluded earlier this year.'

The details of the new bonds are as follows:



Class  Rating                 Amount             Coupon
A1N    AAA/AAA/Aaa            £200m              £Libor + 18bps
A3N    AAA/AAA/Aaa            $418.75m           $Libor + 18bps
A4     AAA/AAA/Aaa            £170m              £Libor + 23bps
AB     AAA/AAA/Aaa            £325m              £Libor + 24bps
C2     BBB+/BBB+              £50m               £Libor + 75bps
D1     BBB/BBB                £110m              £Libor + 85bps

Notes:

1. All bonds pay interest quarterly
2. Rating = S&P/Fitch/Moody's
3. The A3N class of $418.75m is equivalent to £250m

The floating rate and currency exposures of the bonds will be hedged through
swaps such that all of the interest costs to the Company on the securitised debt
are fixed.

The bond issue was arranged and managed by the Royal Bank of Scotland and
Citigroup.

For further information, please contact:

Investor Relations
Kate Holligon                                             0121 498 5092

Media
Finsbury Group - James Murgatroyd                         020 7251 3801


Further information on Mitchells & Butlers' existing Securitisation is available
under 'Securitisation & Debt information' at www.mbplc.com.



Cautionary note regarding forward-looking statements
This announcement contains certain forward-looking statements as defined under
US legislation (section 21E of the Securities Exchange Act of 1934) with respect
to the financial condition, results of operations and business of Mitchells &
Butlers and certain of the plans and objectives of the board of Directors with
respect thereto. These forward-looking statements can be identified by the fact
that they do not relate only to historical or current facts. Forward-looking
statements often use such words as 'will', 'should', 'continue', 'anticipate',
'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe' or other
words of similar meaning. The forward-looking statements contained herein are
based on assumptions and assessments made by Mitchells & Butlers' management in
light of their experience and their perception of historical trends, current
conditions, expected future developments and other factors they believe to be
appropriate. By their nature, forward-looking statements are inherently
speculative and involve risk and uncertainty, and there are a number of factors
that could cause actual results and developments to differ materially from those
expressed in or implied by such forward-looking statements. These factors
include, but are not limited to: the future balance between supply and demand
for Mitchells & Butlers' sites; the effect of economic conditions and unforeseen
external events on Mitchells & Butlers' business; the availability of suitable
properties and necessary licenses; consumer and business spending, changes in
consumer tastes and preference; levels of marketing and promotional expenditure
by Mitchells & Butlers and its competitors; changes in the cost and availability
of supplies; key personnel and changes in supplier dynamics; significant
fluctuations in exchange rates, interest rates and tax rates; the availability
and effects of any future business combinations, acquisitions or dispositions;
the impact of legal and regulatory actions or developments; the impact of the
European Economic and Monetary Union; the ability of Mitchells & Butlers to
maintain appropriate levels of insurance; the maintenance of Mitchells &
Butlers' IT structure; competition in markets in which Mitchells & Butlers'
operates; political and economic developments and currency exchange
fluctuations; economic recession; management of Mitchells & Butlers'
indebtedness and capital resource requirements; material litigation against
Mitchells & Butlers; substantial trading activity in Mitchells & Butlers'
shares; the reputation of Mitchells & Butlers' brands; the level of costs
associated with leased properties; competition for high quality managers;
declining sales of beer in pubs in the UK; food safety scares; funding
liabilities in respect of the Group's pension schemes and the weather.

                                     -ends-




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