At the Annual General Meeting to be held at 2pm today, Giles Thorley, Executive Chairman, will make the following comment on the Company’s trading since the start of the current financial year on 18th August 2002:

“Punch Taverns has continued to perform well since the beginning of our financial year, with good growth in operating and pre-tax profit in line with our expectations.  The Company owns some of the best community pubs in Britain and has therefore suffered less from the downturn in trading that appears to have affected the High Street.  This continued steady growth is reflected in like-for-like turnover up 2% in the 20 weeks to 4th January.  Growth has been driven both organically and by acquisition and we have seen further improvement in operating margins.

“So far this financial year, we have invested £9m in 131 pub improvement schemes.  Our award winning retailer training programmes have had 291 attendees so far this year.  In addition, we have acquired 198 pubs, for a total acquisition spend of £76m, and disposed of 19 pubs at a profit to book value.  The total number of pubs within the estate is now 4,479.

“Our focus on predominantly community pubs provides inherent strength and shields us from some of the effects of the trading difficulties that have been experienced by High Street pubs.  The continued improvement in performance reflects the resilient features of the leased/tenanted business model and our long standing commitment to help our retailers develop their individual businesses.”

As previously announced, following today’s AGM, Phil Cox will become Non-Executive Chairman of the Company and Giles Thorley will become Chief Executive. Fritz Ternofsky will become the Senior Independent Non-Executive Director.

The Company’s interim results, covering the 28 weeks to 1st March 2003, are expected to be announced on 24th April 2003.

Ends