Swallow Inns and Restaurants to be Sold

Whitbread PLC
8 February 2000


Whitbread to sell Swallow Inns and Restaurants

Whitbread today confirmed that it is to offer for sale the pubs and
restaurants business obtained as part of the acquisition of Swallow Group plc.
 A small number of properties have been retained and will be converted to
Whitbread branded pubs.

The business for sale comprises a portfolio of 187 pubs, including 146 managed
and 41 tenanted pubs, supported by a head office infrastructure.  Located 
predominantly in the North East and Yorkshire, the estate includes successful
branded concepts such as Bramwells and Barcentro.  In the financial year ended
30 September 1999, the business, including the retained pubs,  generated sales
of approximately £64.4 million with an operating profit of £14.6. million.

Whitbread has appointed Deutsche Bank to act as adviser in connection with a
possible sale and parties interested in the estate should register their
interest directly with Deutsche Bank.

Press enquiries:

Whitbread PLC

David Reed           0171 615 1324
Lesly Hughes         0171 615 1059
Jeremy Probert       0171 615 1445


Deutsche Bank

Hilary Bowman       0207 545 8000
James Legge