AGM Statement

FOR IMMEDIATE RELEASE 18 MAY 2011

CHURCHILL CHINA plc

AGM STATEMENT 2011

At the Company's Annual General Meeting today, Jonathan Sparey, Chairman, will make the following statement:

"I am pleased to report that in the period since our Preliminary Results Statement on 30 March 2011, overall trading performance has continued at satisfactory levels with encouraging signs of further growth in our UK hospitality business in particular.

Hospitality revenues for the period to 30 April 2011 are in line with expectations and reflect a good performance in the UK balanced by a slower start in certain export markets, especially the US. The UK has seen a steady improvement in monthly sales activity since January. We have increased our sales and marketing capabilities in a number of export markets and, given the present level of activity in these markets, are confident of making progress through the rest of this year.

Retail revenues over the same period have declined against 2010, in line with our continued change in business mix away from lower margin volume channels in favour of middle market customers in the UK and abroad. Our performance has been consistent with our revised strategic plan and the quality of earnings is improving.

In summary we are making good progress against our plans to improve profitability for the year as a whole and are very focused on delivering enhanced returns."

- Ends -

For further information, please contact: