RNS Number : 2513D
Mitchells & Butlers PLC
30 November 2009

30 November 2009


Announcement on RecentPressSpeculation

Themajority of the Board of Mitchells & Butlers notes the recent press speculation regarding the increasingly difficult relationship between the Board and a small number of its largest shareholders.

In particular, the majority of the Board would like to bring to shareholders' attention two actions by a shareholder representative of Piedmont Inc which together could potentially undermine the independence and effectiveness of the Board.

The first action taken was the frustration of the appointment of an independent Chairman to replace Drummond Hall, who has made public his intention to step down. The nomination committee of the Board put forward three independent candidates for election to the position of Chairman, all of whom were vetoed at the final stage by a nominated representative ofPiedmontwho had been involved in the process from its beginning as a member of the nomination committee.

The second action was requesting the resignation of the Senior Independent Director, Simon Laffin, advising him that if he did not, a small number of large shareholders would vote against his election at the January 2010 AGM.

The Panel on Takeovers and Mergershas been approached and a submission will be made imminentlyregarding the cumulative evidence that a number of shareholders have beenseeking to gain control of the Board and of the Company to advance the interests of a small group of shareholders at the expense of others.

The majority of the Board is continuing to work to strengthen the Board through further independent appointments, and to identify an independent candidate to succeed the Chairman, Drummond Hall, urgently.

For further information, please contact:

Erik Castenskiold

0121 498 6513

James Murgatroyd (Finsbury Group)

0207 251 3801

Notes for editors:


Mitchells &Butlersowns 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 theUK, Mitchells &Butlershas over 10% of industry sales and average weekly sales per pub almost four times greater than that of the averageUKpub.

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