Pre Close Trading Update

Mitchells & Butlers PLC
28 September 2004


28 September 2004

                            Mitchells & Butlers plc
                            Pre Close Trading Update

Mitchells & Butlers is pleased to report strong trading in the 19 weeks to 18
September with same outlet like for like sales up 6.0%.

Our sales strategy is focused on improving range, service and value to our
customers. Same outlet volume growth in the 19 weeks of 8% in food and 5% in
drinks has enabled continued improvements in purchasing terms and increases in
staff productivity. As a result, overall trading for the year ending 30
September 2004 is expected to be at the upper end of the Board's expectations.

Same Outlet Like for Like Sales

                19 Wks* to 18 September 2004   51 Wks to 18 September 2004
Residential                             7.0%                          6.6%
High Street                             3.9%                          3.4%
Total                                   6.0%                          5.6%

Uninvested Like for Like Sales

                19 Wks* to 18 September 2004   51 Wks to 18 September 2004
Residential                             5.7%                          4.7%
High Street                             2.0%                          1.6%
Total                                   4.4%                          3.8%

* Last reported like for like sales included 32 weeks to ensure comparability of
Easter trading.

The 70% of the Mitchells & Butlers' estate in residential areas continues to
drive our growth, with same outlet like for likes up 7.0% in the 19 weeks led by
a particularly strong performance in our pub restaurant brands, Harvester, Toby
and Vintage Inns. In the high street, our businesses continue to perform well
despite the competitive pressures, with same outlet like for likes up 3.9%, led
by recovery in our central London businesses.

Our sales initiatives generated continued growth in uninvested like for like
gross profit, driven by the gains in volume and mix as well as improved
purchasing terms. This was achieved with average food and drink prices being
down less than 1%.

In the 51 weeks to 18 September average sales per managed pub have risen by 8%
to £15,200 per week, over three times the industry average, driven by the
success of our sales strategy and the actions we have been taking to develop
further the quality of the estate. Net of the impact of disposals and outlets
moving to franchise, total retail sales were up 4.5%. Net operating margins were
only slightly below last year, despite £15m of external cost increases.

Mitchells & Butlers will announce its Preliminary Results for the year ended 30
September 2004 on 1 December.

Outlook for 2005

The Mitchells & Butlers' business is increasingly focused on the long term
growth of the informal, value for money, eating and drinking-out market in
residential areas, where our pubs are capturing a disproportionate share.

In 2005 however, we expect to incur increases in external costs of a similar
magnitude to that seen in 2004 together with additional energy costs of some
£4m. The actuarial valuation of our pension fund is in progress and any future
impact on the business will be outlined at the Preliminary Results.

In the pub sector in general, there remains regulatory uncertainty over smoking
and strong price competition in the High Street.

To meet these challenges, we will continue to build on the success achieved this
year. The Board is confident in its strategy of delivering better choice and
value to customers, in order to drive volume growth and generate the associated
purchasing and productivity improvements.

For further information please contact:
Investor Relations:
Kate Holligon                                           0121 498 5092
Media:
Simon Ward                                              0121 498 5795
Finsbury Group - James Murgatroyd                       0207 251 3801

There will be a conference call for analysts and investors at 8.30am, please
dial 020 7162 0189. The replay will be available for one week on 020 8288 4459,
passcode 420732.

Notes for editors:
-   Same outlet like for like sales include all managed pubs that were trading
    for the whole of the two years being compared. 94% of the estate is included
    in this measure.
-   Uninvested like for like sales include only those managed pubs that have not
    received expansionary investment of more than £30k in either year being
    compared. 83% of the estate is included in this measure.
-   Mitchells & Butlers owns and operates approximately 2000 high quality,
    managed pubs in prime locations nationwide. The group's predominantly
    freehold estate is biased towards large pubs in residential locations. With
    some 3% of the pubs in the UK, Mitchells & Butlers has 10% of industry
    sales, and average weekly take per pub of over three times the industry
    average.

Cautionary note regarding forward-looking statements
This update contains certain forward-looking statements as defined under US law
(Section 21E of the Securities Exchange Act of 1934). These forward-looking
statements can be identified by the fact that they do not relate to historical
or current facts. Forward-looking statements often use words such as 'target',
'expect', 'intend', 'believe' or other words of similar meaning. By their
nature, forward-looking statements are inherently predictive, speculative and
involve risk and uncertainty. 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. Factors that could affect the
business and the financial results are described in Item 3 Key Information -
Risk Factors in the Mitchells & Butlers plc Form 20-F filed with the United
States Securities and Exchange Commission on 16 March 2004.




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