Sale and leaseback of 17 pub portfolio

Enterprise Inns plc

23rd December 2011

Sale and leaseback of a portfolio of 17 pubs for a consideration of £23.85m.

Enterprise Inns plc is pleased to announce that it has exchanged contracts and expects to complete today upon the sale and leaseback of a portfolio of 17 freehold pubs situated in London and the South of England, with the Hermes Real Estate Investment Management Ltd (HREIML) for total cash consideration of £23,850,000. The pubs will be leased back to Enterprise Inns plc on new 35 year leases. The sale proceeds from this sale and leaseback are above the total book value as at 30 September 2011.

All of the properties will be held on full repairing and insuring leases with five-yearly upwards only increases, all increases in line with RPI subject to a minimum uplift of 2% per annum and a maximum uplift of 4% per annum. The initial rent roll is £1,635,000 per annum.

This sale and leaseback is in line with Enterprise Inns' objective to seek efficient sources of capital and to use disposal proceeds and other surplus cash to reduce debts through repayment of bank debt or to purchase notes or corporate bonds.

Enquiries:

Tulchan Communications, Ed Orlebar, David Allchurch 0207 353 4200

Enterprise Inns 0121 733 7700