Joint Venture Agreement

Date: 23 December 2010

On behalf of: Finsbury Food Group plc ('Finsbury', 'the Company' or 'the Group')

For Immediate Release

Finsbury Food Group plc

Joint Venture Agreement

Finsbury Food Group plc (AIM: FIF), a leading manufacturer of cake, bread and gluten free bakery goods, is pleased to announce that it has today, through its United Central Bakeries and Livwell subsidiaries ("UCB & Livwell"), entered into a new contractual joint venture agreement ("JV Agreement") with Genius Foods Limited ("Genius"), its existing partner and owner of the Genius brand. Finsbury and Genius are expanding their existing relationship through the introduction of additional gluten free products to be sold under the Genius brand and will therefore operate as contractual joint venture partners within the UK fresh bakery goods sector.

The JV Agreement also contains details of an option, granted by Finsbury to Genius, to buy the business and assets of UCB & Livwell for a consideration of £21.0 million, at any point within 12 months from this date. UCB & Livwell are the subsidiaries of Finsbury which produce Finsbury's gluten-free products, as well as yum-yums and potato scones. In the year ended 30 June 2010, UCB & Livwell recorded revenues of £23.1 million and profit before tax (after Group costs) of £1.0 million, which in the event of the option being exercised will no longer accrue to the Finsbury Group. In the event of the option being exercised the proceeds of the sale will be used to repay debt and for general corporate purposes. Genius has also undertaken to transfer the potato scone and yum-yum business back to the Finsbury Group.

John Duffy, Chief Executive of Finsbury said,

"We are delighted to announce the formation of this joint venture with Genius, the leading and most innovative brand in the gluten free market. We have enjoyed a successful working relationship with Genius, and believe that this joint venture will cement and develop this relationship further.

We also believe the joint venture will give added momentum to the fastest growing area of our business and we look forward to working with Genius to drive forward our market leading position for the longer term."

Gervase Cottam, Chief Executive of Genius said,

"We are looking forward to further developing the strong team that has been working with Finsbury as a key partner in the UK. Both parties are aligned and focussed on developing great tasting gluten free products that deliver against the exacting demands of our customers and consumers."

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Notes to Editors:

§ Finsbury Food Group plc (AIM: FIF), a leading manufacturer of premium and celebration cakes, low fat cake slices and artisan, organic and gluten free bread and morning goods

§ Finsbury Food Group is the second largest manufacturer of Ambient Packaged Cake (excluding ISB) in the UK, a market valued at £1.04bn (Source: Nielsen Scantrack Total Coverage, October 2010).

§ The Group is also the market leader in the supply of gluten free baked goods to the UK's multiple grocers

§ The Group's strategy is to generate returns for shareholders by building a crafted bakery group focused on premium, celebration and well being that delivers for customers and consumers. Finsbury continues to develop its licensed brand portfolio to complement its core retailer brand relationships and improve its understanding of and response to changing consumer needs

§ Whilst the Company sees exciting organic growth opportunities in all its businesses and its short-term focus is on integrating and growing its existing businesses, the aim is to take advantage of the appropriate bolt on acquisitions to drive longer term value as opportunities and circumstance allow