Sale and leaseback of 26 pub portfolio

Enterprise Inns plc

Sale and leaseback of a portfolio of 26 pubs for a consideration of £32.46m.

Enterprise Inns plc is pleased to announce that it has reached agreement for the sale and leaseback of a portfolio of 26 freehold pubs situated in London, with the Hermes Property Unit Trust for total cash consideration of £32,460,000. 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 2010 of £25,053,000.

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 £2,160,000 per annum.

This sale and leaseback is in line with Enterprise Inns' stated objective to seek efficient sources of capital, and the disposal proceeds will be used for debt repayment.

Enquiries:

Tulchan Communications, Andrew Honnor/Mal Patel 0207 353 4200

Emma Greves, Investor Relations Manager 0121 733 7700/07990 550210