At the Annual General Meeting to be held at 10am this morning, Giles Thorley, Chief Executive, will make the following comment on the Company's activity since the start of the current financial year on 24th August 2003:

"The first few months of the financial year have been transformational for Punch. In November we restructured our debt funding, raising £265m additional cash and lowering our average cost of borrowing. On 1st December we utilised this finance to complete the acquisition of the Pubmaster business, increasing the size of our estate by some two thirds. We have since announced the planned disposal of 252 pubs, in areas where we had a significant geographical overlap.

"The acquisition has created an excellent estate of 7,386 pubs, improving our national coverage and our range of lease types and suppliers. The integration of the Punch and Pubmaster businesses is underway and progressing well. We have recently announced our intention to concentrate our support activities from our head office in Burton on Trent, and the consequent closure of the former Pubmaster head office in Hartlepool, together with their other regional offices. We expect full integration will take about six months to complete, and see good opportunities both for development of the enlarged business and consequent cost savings.

"Meanwhile we continue to enhance the Punch estate, investing £16.1m on 213 development schemes, and acquiring 38 pubs whilst disposing of a further 27, since the start of the financial year.

"Both businesses are performing well, in line with management expectations, and trading conditions continue to be favourable. In the 16 weeks to 13th December 2003, like for like turnover growth in the existing Punch estate was 2%.

"We expect the forthcoming changes in licensing regulations to bring benefit to our industry in due course through greater flexibility and modernisation. Initially however, there will be an additional burden on our retailers to comply with local authority requirements. We will shortly be announcing plans to support our retailers through this process, and to help them to take advantage of opportunities that would suit their individual business.

"I am pleased to announce today the appointment of Adrian Fawcett to the Punch Taverns plc Board. Adrian, 35, joined Punch as Chief Operating Officer in August 2003 after a career which has included Mars, Interbrew and Bass Brewers, and will strengthen the Board's operational focus on our enlarged estate.

"2003 was an excellent year for Punch. We now have a larger, high quality estate of core UK pubs, run by retail professionals serving their local communities, and a robust business model which continues to deliver strong results. We begin 2004 with confidence and optimism."

Interim results for the 28 weeks to 6th March 2004 are expected to be announced in late April.

Ends