Share Buy Back

Belgo Group PLC 28 November 2000 28 November 2000 FOR IMMEDIATE RELEASE Belgo Group Plc ('Belgo') Proposed off-market buy-back of 19.8% of its Ordinary Share Capital Belgo today announces a proposed off-market buy-back of approximately 19.8% of its ordinary share capital from Avado Brands Inc. The proposed repurchase is expected to be earnings enhancing and is subject to the approval of Belgo shareholders at an EGM convened for 21 December 2000. MAIN POINTS OF THE REPURCHASE: * 203,233,460 Ordinary Shares representing 19.8 per cent of Belgo's issued share capital * Total consideration of £5.79 million * Repurchase price 2.85p per share, representing a discount of approx. 12.3 per cent to the closing mid-market price on 27 November 2000 * Expected to be earnings enhancing Andy Bassadone, Chief Executive of Belgo Group Plc, commented: 'This repurchase, at an attractive price for our shareholders, will immediately remove a major area of uncertainty on our share register at the same time as enhancing earnings per share.' Nick Fiddler, Finance Director of Belgo Group Plc, stated: 'Following the repurchase the Group's on going cash flows provide significant headroom, particularly in respect of interest cover, and accordingly the increased borrowings do not constrain the Group's ability to grow'. DETAILS OF THE REPURCHASE: Belgo has reached agreement, in principle, with Avado for the repurchase and subsequent cancellation of its shareholding in Belgo, which currently amounts to 203,233,460 Ordinary Shares, representing approximately 19.8 per cent. of the Company's issued share capital. Under the terms of the proposed agreement, the Company has agreed to pay a price of 2.85p per share, a discount of 12.3 per cent. to the closing middle market price of Belgo shares as at 27 November 2000 and which amounts to a total consideration of approximately £5.79 million. The proposed repurchase is subject to the approval of Belgo shareholders at an Extraordinary General Meeting convened for 21 December 2000. An explanatory circular to shareholders together with a notice of Extraordinary General Meeting is expected to be posted to Belgo shareholders today. EFFECTS OF THE REPURCHASE: The Directors believe that the proposed repurchase of 203,233,460 Ordinary Shares by Belgo would: a. enhance earnings per share; and b. leave Belgo with a widely spread share register with no dominant shareholding and avoids the potential over-hang and/or uncertainty created by a major shareholding block. The consideration for the repurchase of approximately £5.79 million would be funded from increased bank facilities. The Board believes that the borrowings incurred pursuant to the repurchase relative to the Group's ability to generate cash will not constrain the future development of the Group. CURRENT TRADING AND PROSPECTS: Trading since 2 July 2000 is ahead of the same period last year although, as stated in the Chairman's statement issued on 25 October 2000, trading continues to be highly competitive. The Group has expanded with the recent opening of a Strada in Upper Street, Islington and a Bierodrome in the Holborn area of London. A further Strada is on schedule to open prior to Christmas 2000 in the Regent Street area of London and the sixth Strada is due to open shortly after Christmas 2000 in the Covent Garden area of London. The Directors believe that the Group, with its solid financial base and mix of both established and new concepts, is well positioned for growth. -ENDS- For further information please contact: Belgo Group plc Tel: 020 7557 6333 Andy Bassadone, Chief Executive Nick Fiddler, Finance Director Citigate Dewe Rogerson Tel: 020 7638 9571 Simon Rigby / Kylie Child