Disposal

Nichols PLC
13 January 2006



Date:           Embargoed until 07.00hrs, Friday 13 January 2006


Contacts:       John Nichols, Executive Chairman
                Brendan Hynes, Group Finance Director
                Nichols plc
                Telephone:  [phone]
                Website:  www.nicholsplc.co.uk

                Alistair Mackinnon-Musson
                Philip Dennis
                Hudson Sandler
                Telephone:  [phone]
                Email:      [e-mail]





                            NICHOLS PLC ('Nichols')

     Disposal of Balmoral Trading Ltd ('Balmoral') to the Autobar Group



Nichols plc, the soft drinks group, announces the disposal of Balmoral - its hot
beverage systems business, to the Autobar Group.



Following this disposal Nichols has two principal operations, namely:



1)      Soft Drinks (primarily involved in the sale of soft drinks, including
        Vimto, throughout the world and Panda & Sunkist in the UK) and



2)      Beverage Systems (Cabana, soft drinks on draught)



The disposal by Nichols of Balmoral to the Autobar Group for £6.5 million in
cash includes £2.4m inter-company debt and will create a small exceptional
profit on disposal.  The proceeds will be used in the short term to reduce group
debt.



The net assets of Balmoral were £4.8m including inter-company debt and the
business generated a profit before tax of £0.73m for the year to 31 December
2004 (as shown in its last audited accounts).



Balmoral's disposal is consistent with the strategy of Nichols plc to focus its
future efforts and investment upon developing further growth opportunities
relating to the soft drinks sector.



The Autobar Group is considered one of Europe's leading companies in the hot
beverage and vending markets and it also owns the Pelican Rouge and Cafe Bar
trading brands.  Autobar has recently embarked on a series of acquisitions
across Europe as it clearly wishes to grow its share of the hot beverage
dispense market.  Autobar therefore sees the purchase of Balmoral as another key
milestone in achieving its overall objectives.



Commenting John Nichols, Chairman Nichols plc, said:



'The disposal of Balmoral will now enable us to focus all our future efforts and
investment entirely on the soft drinks sector.  I am also pleased it has been
acquired by a major player in its sector and I would like to thank all of the
Balmoral team for their support and commitment over the last six years of our
ownership and to wish them well in the future'.





                                    - ENDS -


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