Disposal

Whitbread PLC
31 July 2006


31 July 2006





            WHITBREAD PLC SELLS PIZZA HUT UK JOINT VENTURE INTEREST



Whitbread PLC ('Whitbread') has today announced an agreement to sell its 50%
shareholding in Pizza Hut UK Limited ('Pizza Hut UK') to Yum! Restaurants
Holdings ('Yum'). The value agreed for the 50% interest is £112m. After
adjustments for debt and other liabilities, Whitbread will receive £99m in cash
on completion which is expected to occur in late September/early October 2006.


Whitbread is the 50/50 joint venture partner of Yum in Pizza Hut UK and,
accordingly, the sale is a related party transaction for Whitbread under the
Listing Rules of the United Kingdom Listing Authority. Completion is therefore
subject to approval by Whitbread shareholders. A circular convening the relevant
shareholder meeting and providing further details of the sale will be despatched
to shareholders shortly. The sale is also conditional upon Yum receiving
clearance from the EU competition authorities.


Whitbread will initially use the proceeds from the transaction to pay down debt
while it reviews its options for creating shareholder value.  Maintaining an
efficient balance sheet structure going forwards remains a priority for the
company.


In the announcement of its preliminary results on 25th April 2006, Whitbread
stated that it would be reviewing the nature and size of its investment in Pizza
Hut UK as part of its objective to focus on core businesses. Following a
detailed review and discussions with Yum, it was concluded that a sale of the
50% shareholding of Pizza Hut UK held by Whitbread to Yum represented the most
beneficial strategic option for both parties.

Alan Parker, Chief Executive, Whitbread said, 'We have worked closely with our 
partners Yum to conclude a successful outcome within a short timeframe. Our exit 
from this joint venture is further evidence of the continuing progress we 
are making towards becoming a leaner and more focused group, concentrating our 
management and capital on those owned businesses in which we have leading 
positions and strong growth prospects.'


Pizza Hut UK is the UK's biggest pizza restaurant business with more than 650
outlets. It was established as a joint venture between Whitbread and Pepsico in
1982. Pepsico's 50% shareholding was transferred to Yum as part of the demerger
of PepsiCo's KFC, Pizza Hut and Taco Bell interests in 1997.


As at 2nd March 2006, Whitbread's carrying value of its investment in Pizza Hut
UK was £29.8m and in the twelve months to the 16th July 2006 profit before tax
as shown in the management accounts were £14.3m of which Whitbread's share is
50%. The last audited accounts for Pizza Hut UK, as at 4 December 2005 showed
gross assets of £140.3m and profit before tax of £26.6m.







For more information please contact:






Christopher Rogers,

Group Finance Director, Whitbread PLC           [phone]

Anna Glover,

Communications Director, Whitbread PLC          [phone]



Celia Gordon-Shute, Tulchan                     [phone]







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