AGM Statement

Greggs PLC
10 May 2006

                                                                     10 May 2006


                                   GREGGS plc

                            CHAIRMAN'S AGM STATEMENT


Greggs is the UK's leading retailer specialising in sandwiches, savouries and
other bakery products, with a particular focus on takeaway food and catering.
It has over 1,300 retail outlets throughout the UK, trading under the Greggs and
Bakers Oven brands.


At the Annual General Meeting held in Newcastle upon Tyne today, the Chairman
Derek Netherton said:


"The current year has developed very much in line with the expectations we set
out in our preliminary statement in March.  Like-for-like sales in the 18 weeks
to 6 May 2006 were flat, continuing the trend already reported.  This compares
with a period of very strong growth last year, when like-for-like sales in the
first 19 weeks increased by 5.8%.


Costs have increased as we expected, with the rise in energy costs making a
particularly strong impact on the first half and, as a result, profits to date
remain materially below the level of last year.  For the rest of the year, we
expect to see benefits from the actions we are taking to reduce costs and from a
number of initiatives to drive turnover growth.


Overall, although it is still early in the year, we believe that the business
will perform in line with our previous expectations for the year as a whole,
although the first half will be materially affected as described above.  We will
provide a further update at the time of our interim results, due to be announced
on 4 August 2006.


Since 1 January 2006 we have opened 14 new shops and closed two, making a net
addition of 12 to 1,331.  This is in line with our stated target to make a net
addition of approximately 35 shops to our portfolio during the year.


So far this year the company has purchased a total of 360,000 of its ordinary
shares for cancellation, at an average price of £38.23 and a cost of £13.8
million.  This is in addition to the purchase of 439,829 shares at a cost of
£16.3 million by the trustees of the Greggs Employee Benefits Trust.  We are
seeking renewal and extension of our authority to buy back shares at today's
AGM, and expect to continue a buyback programme over the medium term where it is
in the interests of shareholders generally.  We continue to review the optimum
capital structure of our balance sheet.


Susan Johnson will be retiring as a Non-Executive Director on 30 September 2006
and I would like to express thanks, on behalf of the Board, for the contribution
she has made during the past six years."


ENQUIRIES:

Greggs plc                                          Hudson Sandler

Sir Michael Darrington, Managing Director           Jessica Rouleau / James Hill
Richard Hutton, Finance Director                    Tel:  [phone]
Tel:  [phone]                                 keithhann.communications
                                                    Keith Hann
                                                    Tel:  [phone]



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