Merger Update:Court Approval

Compass Group PLC
Granada Group PLC
26 July 2000

                                      
              MERGER OF GRANADA GROUP PLC AND COMPASS GROUP PLC
                               COURT APPROVAL

Granada and Compass Group announce that following the Court hearings on 24
July at which the Schemes of Arrangement were sanctioned, at today's Court
hearings of the reductions of capital required to effect the Schemes of
Arrangement, the Court approved the reductions and granted an order
sanctioning the Schemes.  All required approvals have been received and the
Merger will become effective on the registration of the Court Orders by the
Registrar of Companies, which is expected to occur on 26 July 2000.

It is further announced that at the Court hearing on 24 July 2000, the Court
approved the petition and granted an order sanctioning the Bondholder Scheme.
It is anticipated that the Bondholder Scheme will become effective on
registration of the Court Order by the Registrar of Companies, which is
expected to occur on 27 July 2000.

Dealings in new Granada Compass shares are expected to commence on the London
Stock Exchange at 8.00 a.m. on 27 July 2000.


Enquiries:
Granada Group PLC                               Compass Group PLC

Gerry Robinson                                  Francis Mackay
Charles Allen                                   Michael Bailey
Henry Staunton                                  Andrew Lynch
020 7451 3000                                   01932 573 000

Lazard                                          Schroder Salomon Smith Barney

John Dear                                       Robert Swannell
Nicholas Shott                                  David Wormsley
Robert Constant                                 Simon Lindsay
020 7588 2721                                   020 7986 4000

Citigate Dewe Rogerson                          Hudson Sandler Ltd

Jonathan Clare                                  Michael Sandler
Simon Rigby                                     Nick Lyon
Chris Barrie                                    Wendy Baker
Alex Brown                                      020 7796 4133
020 7638 9571

This announcement is made jointly by Granada Group PLC and Compass Group PLC.
Terms defined in the announcement made jointly by Granada Group PLC and
Compass Group PLC  on 17 May 2000 shall have the same meanings in this
announcement.

This press release does not constitute an offer of securities.