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23 August 2005

£39m re-financing at EAT ("the Company") through deal with private equity house Penta Capital

Funds used for planned national growth from 45 to 100 sandwich shops

Penta is pleased to announce that it has completed an investment to support the Management Buy-Out of EAT, the award-winning London-based sandwich company. The £39 million deal sees Penta Capital acquire a substantial minority stake in the Company and provides development capital funding which will catalyse the Company's ambitious expansion plans.

EAT plans to use the proceeds of the significant fund raising to increase the number of outlets to 100 shops within a three year timeframe and to continue to invest in its central kitchen to maintain and improve the Company's innovation and ensure differentiating levels of food freshness and quality. The company has already either identified or secured a number of new sites in Greater London, as well as some of the UK's major regional cities and at a number of transport hubs and shopping and visitor attractions.

EAT prepares and sells a range of freshly made sandwiches, soups, salads, hot pies and coffees. EAT serves over 200,000 customers a week and during the last year has served 2 million cups of soup. EAT has 45 outlets, of these, 35 are in prime sites in Central London, and the remainder are in Birmingham, Cambridge, Windsor, Canterbury, Leicester, Manchester and Gatwick North Terminal. One of the key factors in EAT's success has been the trend towards healthier eating. With more and more customers interested in the origin, content and freshness of their food, and as the average lunch hour dwindles, the Company has capitalised on its brand position as 'THE REAL FOOD COMPANY'. EAT operates a unique centralised kitchen which ensures a differentiating quality and freshness of product and market-leading innovation. EAT currently employs 720 people and expects to double the workforce by 2008.

Niall MacArthur will continue to lead the existing EAT managerial team as Managing Director, and Penta's Torquil Macnaughton will be appointed to the board as a non-executive director. In addition, Guy Harvey joins as finance director. Previously, Guy was finance director at Conran Restaurants. The Board otherwise remains unchanged with Faith MacArthur as Brand Director, Colin Hughes as Retail Director and John Herring as non-executive director. John Herring is also non-executive deputy-chairman of Wetherspoons, the pub group.

Niall MacArthur, founder and MD of EAT said: "This is terrific news for EAT as it gives us the fire-power to capitalise on our brand and realise our expansion plans, whilst continuing our focus on product innovation, quality, freshness and great service."

Commenting on Penta's involvement, Torquil Macnaughton said: "We are delighted to be partnering up with Niall and his team at EAT. Not only have we been hugely impressed by EAT's product, its people and its growth potential but also by its strong focus on core brand values of fresh, high quality, healthy food. Following on from our successful flotation of La Tasca, the UK's largest casual dining Spanish restaurant chain, earlier this year, EAT fits perfectly with Penta's investment focus on well managed strong brands within the leisure sector".