Whitbread PLC 21 July 2006 Whitbread PLC Disposal of freestanding pub restaurants Whitbread PLC ("Whitbread") announced today that it has agreed to sell 239 of its freestanding pub restaurant sites (the "Disposal Estate") to Mitchells & Butlers plc for £497 million. The Disposal Estate comprises 235 trading pub restaurants located throughout the United Kingdom and 4 pub restaurants not yet open for trade. The consideration is payable in cash and includes contingent deferred consideration of up to £7 million. Completion of the transaction is expected on 28th July 2006. Whitbread will initially use the proceeds from the transaction to pay down debt while it reviews its options for creating shareholder value. Maintaining an efficient balance sheet structure going forwards remains a priority for the company. The aggregate net book value of the Disposal Estate, included in the consolidated balance sheet as at 1st March 2006, was £280.9 million. The Disposal Estate made a profit contribution before allocation of central overhead of £37.5 million in the year ended 1st March 2006. Alan Parker, Whitbread PLC Chief Executive commented: "We are very pleased that the sale process has been completed so successfully in terms of both value and speed. We can now focus on operating those sites that combine a pub restaurant with a Premier Travel Inn - a combination that has produced some of the highest returns in the industry. We will also be progressing our programme of adding around 3,000 new rooms on our existing pub restaurant sites. We see substantial opportunities for further profitable growth from these combined sites." For more information please contact: Christopher Rogers, Group Finance Director, Whitbread PLC +44 (0) 1582 396 581 Miranda Acland, Tulchan +44 (0) 20 7353 4200 Celia Gordon Shute, Tulchan +44 (0) 20 7353 4200 Brian Magnus, Morgan Stanley +44 (0) 20 7425 5000 This information is provided by RNS The company news service from the London Stock Exchange