Disposal

Whitbread PLC
17 October 2000


Whitbread PLC, Punch Group Limited and Nomura International plc

Sale of off-licence joint venture

The boards of Whitbread PLC (Whitbread) and Punch Group Limited announce that
they have today completed the sale of First Quench Retailing Limited to
Carmelite Acquisitions Limited, a company formed and financed by the Principal
Finance Group of Nomura International plc.  The consideration was £225 million
subject to an adjustment relating to net assets.

David Thomas, Chief Executive of Whitbread, said:  'The disposal represents a
further step in the transformation of Whitbread into a focused leisure
business.  It follows the disposal of the Whitbread Beer Company in May 2000.'

Hugh Osmond, Chairman of Punch, said: 'This disposal continues the
rationalisation programme that we put in place at the time of our acquisition
of Allied Domecq Retailing.  Whilst some of the proceeds of the sale will be
applied to reduce the outstanding debt of Punch, a substantial amount will be
invested in the continued development of our core pub estate where the
benefits of such investment have already been shown.'

Guy Hands, Managing Director of Principal Finance Group, said: 'The
acquisition of First Quench is a good deal for all concerned.  First Quench is
not a core business of either Whitbread or Punch.  Based on our track record
with similar consumer-facing businesses, we believe that First Quench's full
potential can be realised by empowering the management and investing in staff
and technology.' 


Enquiries:
Whitbread       
David Read        020 7615 1324
       
Punch       
Hugh Osmond       020 7935 3536
       
First Quench       
Graham Frost      01707 385 000
       
Close Brothers Corporate Finance       
Tom Quigley       020 7655 3100
       
Financial Dynamics (for Nomura)       
Andrew Dowler     020 7831 3113 (mobile [phone])
       
Citigate (for Punch)       
Anthony Carlisle  020 7638 9571 (mobile [phone])