Acquisition

Whitbread PLC
23 December 2003

23rd December 2003



David Lloyd Leisure to acquire Netherlands fitness group from Cannons


Whitbread PLC is to take its David Lloyd Leisure brand into Holland.



David Lloyd Leisure has today exchanged contracts with Cannons Health Clubs
Limited to acquire Cannons Health & Fitness BV, which operates five health and
fitness clubs in the Netherlands and has two sites under construction.



The consideration for the transaction is €31m cash subject to adjustment,
depending on the net assets of Cannons Health & Fitness BV at completion. The
deal is expected to complete on 31st December 2003.



Stewart Miller, managing director of David Lloyd Leisure, said: 'We are entering
an exciting market with five well-managed, maturing clubs in strong locations.
The clubs are trading well and with a membership base of over 20,000 from day
one we have a significant head start in developing a profitable and
high-returning business.



'With two further clubs under construction and a pipeline of suitable sites
identified, this is a business that is already well into its stride. We inherit
from Cannons a successful relationship with the property group, Pellikaan, and
this gives us a firm base for growth.'



Miller is keen to stress that the UK remains the principal focus for the
development of David Lloyd Leisure.



Yet he points out that the company's acquisition of the Dutch arm of Cannons is
an important strategic step for the brand: 'We have identified two territories,
Spain and the Benelux region, where market conditions and demographics are
particularly well suited for the David Lloyd Leisure club model. We have now
secured footholds in both markets; we have signed up strong local partners; and
we have done all this without major capital investment.'



David Lloyd Leisure has already agreed a deal to buy a site in Barcelona and has
announced its intention to seek further sites as part of plans to develop the
brand in Spain. The company also expects to open a club in Brussels, in late
2004, independent of the Cannons Health & Fitness BV deal.



                                     -ends-


Press & City
Dan Waugh            Whitbread PLC,         [phone]

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Julie Weldon         Whitbread PLC          [phone]

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