Acquisition

Compass Group PLC
23 July 2001

                                                                    23 July 2001

                              COMPASS GROUP PLC
                      ACQUIRES VENDEPAC FOR £84 MILLION

Compass Group PLC is delighted to announce the acquisition of Vendepac, the
UK's largest vending business, from TM Group Holdings plc for a total cash
consideration of £84 million, to be paid on completion.  Subject to
performance considerations a further maximum of £3 million may be payable.

The acquisition of Vendepac fills an important gap in Compass Group's vending
capability and joins sister companies Canteen Vending and Selecta - the
largest vending companies in North America and Europe respectively.

Vendepac, with annual revenues of £58m, is the UK market leader with a 9%
market share, operating over 28,000 food and beverage vending machines.
Worldwide the foodservice market is estimated to be worth £200 billion per
annum, with vending predominantly centred in North America, Japan and Europe.

Michael J Bailey, Chief Executive of Compass Group said:  'This is a
strategically important move for Compass Group.  Our experience shows that our
ability to offer clients in North America an integrated foodservice and
vending offer has been a significant factor in our business growth there.
Vendepac builds our vending capability in Europe, as already established with
Selecta, and we are delighted to welcome the management and staff to Compass
Group.'


                                    Ends.

Enquiries:

Andrew Lynch, Compass Group             Tel: [phone]
Nick Lyon/Wendy Baker, Hudson Sandler   Tel: [phone]

Notes to Editors


1.    Compass Group is the world's largest foodservice company employing over   
      265,000 people in over 90 countries and with annual revenues in excess of 
      £8.3bn. Compass Group provides catering for clients including major
      employers, educational establishments, hospitals, leisure venues, retail
      locations and at major airports and stations throughout USA, Europe, and
      developing markets in Asia and South America.  It operates through
      sector-specific subsidiaries such as Eurest, the world's largest          
      specialist in providing foodservice to business and industry clients.     
      Further information on the Group can be found at  www.compass-group.com
                         
2.    Vendepac is the UK's largest vending company with over 40 years experience
      of providing vending services to public and private organisations across  
      the UK.  For further information visit www.vendepac.co.uk