Trading Update

Date: 30 November 2010

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

Embargoed until: 0700hrs

Finsbury Food Group plc

Trading Update

Finsbury Food Group plc (AIM: FIF), a leading manufacturer of cake, bread and gluten free bakery goods, is today holding its Annual General Meeting. At the meeting the Chairman will issue the following update on trading for the first 17 weeks of the current financial year ending 30 June 2011.

Our Bread and Free From division has continued to achieve strong, organic growth of 12.3% year on year. The principal driver of this growth is the introduction of our innovative fresh gluten free bread ranges.

Our larger Cake division has now returned to growth following last year's decline, with organic growth of 2.5% year on year. This increase, which is partially a result of increased promotional investment that we have made, is particularly significant when compared to the wider cake market which has remained flat.

As a result, revenue for the Group has increased year on year, with sales for the 17 weeks to the end of October 4.9% higher than the corresponding period last year on a like for like basis. There were no acquisitions in the period.

Recent cost saving initiatives have enabled the Group to take advantage of growth opportunities and delivered the desired reduction in the cost base.

We continue to navigate our way through difficult trading conditions and have seen marked increases in commodity prices. However, following the implementation of recent integration initiatives Group efficiency, product quality, and customer service have improved, resulting in operating margins remaining broadly unchanged.

Adding to this, John Duffy, Chief Executive of Finsbury, commented:

Finsbury maintains a strong market position and our commitment to product quality and innovation is second to none and has underpinned our return to growth. We are pleased with the reported update and, remembering the remaining tough economic conditions, I am happy with the Group's progress so far this year.

Finsbury remains a competitive player in its market place with a loyal and diversified customer base. We will remain adaptive to changes in market and customer demand by utilising our highly skilled, innovative and flexible production capability. Our strong management teams will continue to optimise the Group's strengths throughout this challenging period."

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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