Pre Close Statement

Finsbury Food Group plc

Pre Close Statement

Finsbury Food Group plc (AIM: FIF), a leading manufacturer of cake, bread and gluten free bakery goods, is today providing an update on trading for the first half of the current financial year, ended 1 January 2011, prior to entering into its closed period.

Group revenue was up 6.0% compared with the same period last year reversing the decline of the last full year. There were no acquisitions or disposals during the period.

Sales in the Bread and Free From division accounted for the majority of the Group's growth, up 14.5% on prior year, driven by strong growth from the Genius brand in the fresh gluten free market and the Vogel's brand in the speciality bread market. As reported in December, the Group, through its United Central Bakeries and Livwell subsidiaries, entered into a new contractual joint venture agreement with Genius Foods Limited ("Genius"), its existing partner and owner of the Genius brand, to further expand its free from product portfolio.

Sales in the larger Cake division are up 3.2% versus the first half of last year. UK market and export sales have both shown growth although the former has required increased promotional support levels to remain competitive and deliver growth in the current marketplace.

We continue to steer a cautious path through difficult times. Our operating environment is constantly evolving but continues to be very challenging with commodity price and cost inflation pressures on one hand and fragile consumer confidence impacting spending on the other. Our internal efficiency programmes across the business remain key in our meeting these external challenges.

During January, the German fresh egg dioxin scare in our Memory Lane cake business, communicated previously, has resulted in a challenging start to the second half of the financial year. Although the products were safe to consume, cakes were removed from shelves by retailers as a precautionary measure. The fact that there was no public health risk, has led our insurer to challenge recovery of any associated withdrawal costs. We are currently in discussions with the insurer, retailers and the egg supplier to resolve the issue.

Whilst the consumer and inflationary environment remains difficult to predict, we continue to see new product growth opportunities within our businesses and, after six months, are trading in line with expectations.

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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