Corporate Action

Whitbread Holdings PLC
2 May 2001

DEMERGER BY MEANS OF A REDUCTION OF CAPITAL & CONSOLIDATION
SECURITY TITLE
*Ord Shs
MNEMONIC CODE        *WTB
SEDOL CODE           *3-001-419
TERMS                *Shareholders will receive the following in place of their
                      existing shares:
      
                      For every 5 Ordinary Shares - 3 Ordinary Shares of  
                      of GBP4.50 in Whitbread       GBP0.50 in Whitbread
                      Holdings                      and
                                                    5 Unlisted Ordinary
                                                    Shares of GBP1.00 in
                                                    Fairbar Limited

DEALINGS COMMENCE NEW SHARES *10-05-01                      
PROVISIONAL EX DATE  *10-05-01                              
RECORD DATE          *10-05-01 (before 7:30am)                         
NOTES *