Mitchells & Butlers PLC 14 April 2008 14 April 2008 Mitchells & Butlers plc Strategic Review Update Following the recent press comment, Mitchells & Butlers announces an update to the strategic review, which is due to be completed by the Interim Results. Since the announcement on 29 January 2008 stating that Mitchells & Butlers was initiating a strategic review, the Board has been actively engaged in discussions to explore ways of creating value for shareholders. As part of this process, the Board has received a number of preliminary proposals from private equity investors to take a minority interest in Mitchells & Butlers at a material premium to the current share price. The Board believes that significant value through enhanced sales and profitability can be created by integrating Punch's managed pub business into Mitchells & Butlers operational and brand structure. The Board has now initiated an approach to Punch to explore whether terms for such a mutually beneficial transaction can be agreed. The Board is actively considering how such an acquisition of Punch's managed pub business could be best funded. One form of funding being considered is the basis on which the private equity investors, who support Mitchells & Butlers strategy of consolidation, might invest in the Company. Any transaction structure and financing will be assessed by the Board in the light of creating value for all existing shareholders and will be subject to any necessary shareholder approvals. On 9 April 2008, Mitchells & Butlers reported resilient sales growth and robust operating profits performance together with strong operational cash generation for the first 27 weeks of the financial year. The Company has no requirement for any capital injection to meet its existing funding needs. The Board is seeking to clarify the proposals from all interested parties prior to the conclusion of the review. All the discussions are at a preliminary stage and subject to further due diligence and negotiation. There can therefore be no certainty that any transaction will be concluded. For further information, please contact: Investor Relations: Erik Castenskiold 0121 498 6513 Media: Kathryn Holland 0121 498 4526 James Murgatroyd (Finsbury Group) 0207 251 3801 Notes for editors: - Mitchells & Butlers owns and operates around 2,000 high quality pubs in prime locations nationwide. The Group's predominantly freehold, managed estate is biased towards large pubs in residential locations. With around 3% of the pubs in the UK, Mitchells & Butlers has 10% of industry sales and average weekly sales per pub over three times greater than that of the average UK pub. - Mitchells & Butlers' leading portfolio of brands and formats includes Ember Inns, Harvester, Sizzling Pub Co., Toby Carvery, Vintage Inns, All Bar One, O'Neill's, Nicholson's and Browns. In addition, Mitchells & Butlers operates a large number of individual city centre and residential pubs. Dealing Disclosure Requirements Under the provisions of Rule 8.3 of the Takeover Code (the "City Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of Mitchells & Butlers plc ("Mitchells & Butlers") or Punch Taverns plc ("Punch"), all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which any offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of Mitchells & Butlers or Punch, they will be deemed to be a single person for the purpose of Rule 8.3. Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of Mitchells & Butlers or Punch by Mitchells & Butlers or Punch, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at "Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel. This information is provided by RNS The company news service from the London Stock Exchange