Acquisition

Conviviality Retail Plc

("Conviviality" or "the Company")

Acquisition of 26 Rhythm and Booze stores for £1.7 million

Conviviality Retail Plc (AIM: CVR), one of the UK's largest franchised off-licence chains, is pleased to announce that on 2 May 2014 it exchanged contracts to acquire 26 stores from R N B Stores Limited ("RNB"), a subsidiary of Bibby Retail Services Limited, for a total consideration of £1.7 million in cash of which £0.2 million is deferred consideration. The stores to be acquired are largely in Yorkshire and the North East and currently operate under the Rhythm and Booze brand.

Conviviality intends to retain all store staff and rebrand the stores under an appropriate Conviviality fascia. Completion is planned for 16 May 2014 following a consultation period for transferring staff.

The Board believes that the purchase of the RNB stores opens up some key regions in which the Company does not currently have a presence and will offer great locations to franchisees. Over time it is the intention to consider transferring stores to the Company's franchise model.

About RNB

RNB is a retailer of wine, beer, spirits and other alcoholic and non-alcoholic beverages with stores predominantly in the Yorkshire and North East area.

For the year ended 31 December 2013, the 26 stores to be acquired generated revenues of £13.68 million and net profits of £0.05 million. Five of the stores are freehold properties, with a combined value of £0.54 million, and the remainder are leasehold.

The Directors are confident that these stores provide an excellent geographic fit with the existing Conviviality portfolio. It is also envisaged that the profitability of the stores will be enhanced following their rebranding to operate under Conviviality fascias, as well as leveraging the Company's buying power.

Terms of the Acquisition

The initial consideration for the acquisition of the RNB stores is £1.5 million in cash and is being settled out of the cash resources of the Company as will the deferred consideration of £0.2 million.

Diana Hunter, Chief Executive Officer, Conviviality Retail Plc, commented:

"This acquisition in entirely in line with our strategy for geographic expansion. The 26 stores provide opportunities for us to extend our reach into Yorkshire, offering growth opportunities for the Company and our franchisees. The 26 stores provide opportunities to expand our Bargain Booze, Select Convenience and Wine Rack fascias."

6 May 2014

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