Disposal

Whitbread PLC
31 May 2002



For Immediate release

31 May 2002



         ECI backs £25m MBI of Pelican and BrightReasons from Whitbread

The Pelican Group Limited and BrightReasons Group Limited have been sold by
Whitbread PLC to a management buy-in (MBI) team backed by private equity firm
ECI, for a cash consideration of £25 million.

Tragus Holdings Limited has purchased the Pelican and BrightReasons groups which
comprise 153 restaurants including the Cafe Rouge, Bella Pasta, Mamma Amalfi,
Abbaye, Leadenhall Wine Bar and Oriel brands.

Whitbread's decision to sell the business followed a review of its restaurant
division in October 2001 and is in line with the group's strategy of driving
growth from its core restaurant brands (Brewers Fayre, Brewsters, Beefeater,
Costa, Pizza Hut and TGI Friday's).

Tragus is led by chief executive Finlay Scott, former head of the Aroma cafe
chain and of Whitecross Dental Care.  The MBI team also includes Gavin Williams,
(who was managing director of Bella Pasta between 1997 and 1999 and later of
Aroma), who will be chief operating officer, and Harry Morley, former finance
director of Whitecross Dental Care, who will be chief financial officer.  Gavin
Casey, former chief executive of the London Stock Exchange, becomes
non-executive chairman.  Richard Chapman and Ken Lindsay of ECI have also joined
the board as non-executive directors.

Tragus plans to invest in and develop Cafe Rouge and Bella Pasta as leading
family brands in the burgeoning dining-out and pizza / pasta sectors.  Plans
include the development of all-day dining menus at Cafe Rouge and broadening the
appeal of the Bella Pasta brand. The other restaurants will continue to be
operated as niche brands.

Finlay Scott, chief executive of Tragus, commented: 'There is a first class team
of talented people within the business and the brands have considerable popular
appeal.   They will prosper with more focused investment and marketing and the
greater innovation allowed by an entrepreneurial approach.'

Richard Chapman of ECI said: 'We will build on very strong foundations rather
than go for wholesale change. This business has a good future and we will invest
in these valuable brands.'

The £25 million of cash consideration is subject to adjustment for working
capital after completion of the deal.

Dresdner Kleinwort Wasserstein acted as financial adviser to Whitbread PLC;
Altium Capital acted as financial adviser to Tragus Holdings Limited.


Enquiries:

Whitbread PLC                                 Tragus Holdings
Dan Waugh - 020 7806 5442                     020 7763 5992 or 07973 159918
                                              Einir Williams or Ray Eglington,
                                              Four Communications

Dresdner Kleinwort Wasserstein                EC1 Ventures
Tel: [phone]                            020 7357 6606 or 07778 343252
Nigel Binks                                   Mark Brown, Dialogue
Charles Berkely

                                              Altium Capital
                                              020 7484 4040
                                              Glen Cooper
                                              Rupert Hill


Dresdner Kleinwort Wasserstein Limited ('Dresdner Kleinwort Wasserstein'), which
is regulated in the United Kingdom by the Financial Services Authority, is
acting for Whitbread PLC and for no one else in relation to the matters
discussed herein and will not be responsible to anyone other than Whitbread PLC
for providing the protections afforded to customers of Dresdner Kleinwort
Wasserstein nor for providing advice in relation to the matters discussed
herein.

Altium Capital Limited ('Altium Capital'), which is regulated in the United
Kingdom by the Financial Services Authority, is acting for Tragus Holdings
Limited and for no one else in relation to the matters discussed herein and will
not be responsible to anyone other than Tragus Holdings Limited for providing
the protections afforded to customers of Altium Capital nor for providing advice
in relation to the matters discussed herein.

Sir John Banham, the Chairman of Whitbread is also Chairman of ECI Group Limited
('ECI Group').  By virtue of his interests in the share capital of ECI Group and
certain existing commitments to participate in the funding of investments made
by entities associated with ECI Group, Sir John will have a small indirect
financial interest in Tragus Holdings Limited.  Although Sir John took part in
the decision of Whitbread to put the Pelican business up for sale, he took no
part in the decisions of Whitbread, ECI Group or entities associated with ECI
Group to enter into the transaction referred to in this announcement.



END



                      This information is provided by RNS
            The company news service from the London Stock Exchange