Final salary pension scheme

Whitbread PLC
09 April 2003


9th April 2003

Whitbread final salary pension scheme


The board of Whitbread announces that it has put in place an agreement with
Whitbread Pension Trustees Limited which:-
     
-    undertakes that the company will continue to fund the scheme for a period 
     of up to 15 years;

-    provides reassurance to scheme members that the company will continue to 
     act positively to fulfil its pension obligations;

-    utilises the strength of the company's balance sheet and gives undertakings 
     to the trustees similar to some of the covenants provided in respect of the 
     company's banking  agreements.

There will be no change to the profit and loss account as a consequence of this
agreement for each of the three financial years until the next triennial
valuation in March 2005.  Over this period, the company will make payments to
the Whitbread Group Pension Fund which are £15m greater than the SSAP 24 profit
and loss account pensions charge.

These additional payments:

-    are contained within existing and projected cash flows;
     
-    may be used to reduce future cash contributions once sufficient funding
     levels have been achieved.

Sir John Banham, chairman, said:  'By taking these prudent steps now we are
protecting our shareholders' interests by avoiding the immediate need for a
major capital payment into the fund.  We have also safeguarded the interests of
fund members who are essential to the future success of the company.'


                                     -end-

Contact:-

David Richardson          -          020 7806 5405
David Reed                -          020 7806 5436
Dan Waugh                 -          020 7806 5442


There will be a conference call for analysts starting at 08.30am this morning.
Dial 020 8974 7900 and ask for the 'Whitbread' call.  A recording of the call
will be available until July 7th, 2003 by dialling 01296 618700 and using PIN
453247.


Note to editors:

The board has confirmed with the actuary that the pension fund had assets in
excess of the minimum funding requirement level at the date of valuation of 31st
March 2002. The board also has agreed with the actuary that the SSAP24 charge
includes an amount which is estimated to eliminate any deficit within a
reasonable time.  Accordingly, no change will be made to the method of
calculating the company's profit and loss account pension charge until either
the next full valuation in March 2005 or the ASB determines that SSAP24 should
be superseded.

The board has taken a long-term view of the pension fund liabilities and funding
requirements.  It has been assisted in doing so by the length of time before
many of the scheme's benefits become payable.  In particular, it will be some 25
years before the average active fund member reaches pensionable age.

The SSAP 24 profit and loss account charge will be approximately £12m in the
year to March 2003.  In addition to this charge, the board has agreed to make
further payments into the fund of £15m gross (£10.5m net of tax) for each of the
next three financial years.

The board estimates that the Whitbread final salary schemes had a deficit of
£420m under FRS17 accounting rules at March 1st, 2003, the end of the last
financial year.  The net deficit after tax was £294m.

The board further estimates that the deficit as at April 8th, 2003 was
approximately £350 million gross and £245 million net after tax.

The final salary scheme was closed to new members from January 1st, 2002.



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