Trading Update

GREENE KING plc

TRADING UPDATE

Greene King announces a Trading Update for the 49 weeks to 11 April 2010 ahead of today's business update and site visits for sell-side analysts. No further material information will be disclosed and a copy of the presentation will be available on the website, www.greeneking.co.uk, later today.

Our year-to-date performance remains strong across the business.

Greene King Retail like-for-like sales are +3.6% with continued strong food sales growth and another successful trading period for our Hungry Horse and Old English Inns brands. We expect margins in the second half of the year to be broadly in line with the corresponding period last year.

Pub Partners average EBITDA per pub was -3.4% after 48 weeks, with second half average EBITDA per pub broadly level with last year. We now have 90% of the estate on substantive agreements and we expect targeted licensee support to be below £6.0m in this financial year.

Brewing Company continues to outperform the market; own-brewed volumes are +3.9% against an on-trade beer market down 6% and the cask ale market down 3%. Greene King IPA remains the UK's no.1 cask ale brand and Old Speckled Hen is the leading premium ale brand in the UK.

Belhaven Retail continues to deliver industry-leading LFL sales growth of +5.6%, underlying tenanted profit per pub is still level with last year and Belhaven Best volume continues to grow strongly at +15.4%.

This year's acquisitions are trading ahead of expectations and, including individual freehold pub acquisitions and below par debt repurchases, we have spent £86m, or 42%, of the rights issue proceeds. We are confident of driving additional growth via further utilisation of the rights issue proceeds in 2010, whilst maintaining our strict financial and strategic disciplines.

We are still cautious for the remainder of 2010 as election uncertainty, rising taxes, public sector cutbacks and fragile consumer confidence may continue to limit consumer spending. Nevertheless, we are confident we can meet these challenges and that the strength of our consumer offer in terms of value, service and quality, in combination with our high quality pub estate, retail and beer brands, will ensure we continue to deliver sector-leading performance.

We are confident of meeting our expectations for this financial year.

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