GT News Franchisee

Conviviality Retail Plc

("Conviviality" or "the Company")

Conviviality signs former Association of Convenience Stores Chairman as franchisee of recently acquired GT stores

Conviviality is pleased to announce that it has entered into a 10 year Franchise agreement with Jonathan James, a very respected and experienced leader in the convenience store sector. In line with the business model, Conviviality has franchised 36 of the newly acquired GT stores to James who plans to grow his store estate within Conviviality to 100.

We have worked on this transaction concurrently with the acquisition of GT News and therefore we do not expect any changes to our profit expectations for this and the following financial period to April 2016.

Earlier this month Conviviality, one of the UK's largest franchised off-licence chains, announced the acquisition of the GT News which has 37 convenience stores in Yorkshire and the East Midlands.

Diana Hunter Chief Executive Officer of Conviviality, said: "With an impressive track record in the independent and convenience sector, we are very pleased to welcome another very experienced retailer to Conviviality. Jonathan James is a highly skilled operator and we are looking forward to growing our brands with him."

James said: "With over 600 stores and its innovative franchisee incentive plan Conviviality is truly championing local off-licence led convenience on the high street. Its unique strategy makes Conviviality stand out from the crowd, attract loyal customers and most importantly, aligns franchisees interests with the Company. It was most important for me to join a collaborative, progressive company that works in partnership with their Franchisees. Their innovative approach to customer engagement with leading edge initiatives such as a new mobile loyalty app and the forthcoming click and collect service is also very appealing."

27 February 2015