Chairman's AGM Statement

Domino's Pizza UK & IRL PLC 17 April 2000 Domino's Pizza UK&IRL plc ANNUAL GENERAL MEETING STATEMENT Domino's Pizza UK&IRL plc, the AIM listed pizza delivery company, held its Annual General Meeting at 11.00 today. Colin Halpern, Chairman, updated the meeting on current trading and the outlook for the year saying: 'Sales in the first fifteen weeks of the year to 9 April 2000 were 13.1% up on the previous year. As the year has progressed sales have improved such that like-for-like sales are almost up to the level achieved in the strong start to 1999. We look forward to forthcoming initiatives including the Euro 2000 football championship and new e-commerce partnerships to provide strong growth in like-for-like sales. Six new stores were opened in the first quarter of the year, which was ahead of budget. Of these, one will be operated corporately and five by franchisees. One of the franchise stores was opened in the Republic of Ireland, bringing the total to five. Two stores were closed. The total number of stores now stands at 205. The outlook for store openings in 2000 remains very positive with a good portfolio of stores at various stages of construction and planning. The number of corporate stores has grown this quarter from 13 to 15. A number of new corporate openings and the acquisitions of several groups of stores from franchisees are planned. The staffing to manage a significant increase in the number of corporate stores has imposed additional costs on this part of our business in the early part of the year. This is expected to be recovered in the second half of the year as the new stores are opened or acquired. E-commerce initiatives continue to grow rapidly. In February we reported that within eighteen weeks of the start-up of our e-commerce ordering, sales had reached 2% of delivery sales in the UK. This has since grown to 2=%. An important initiative announced last week was Domino's move into e-fulfilment' or last mile delivery, by using up to 2000 delivery staff across our current 205 store system to deliver products ordered via the internet and interactive television. The first such initiative is an association with 'gameplay', a leading games retailer, and we will be delivering a computer game together with a pizza and Coke the night before the game's official launch. The 'gameplay' initiative has understandably attracted high levels of media attention, given that this is the first time Domino's has delivered any product other than the traditional pizzas and side orders. We anticipate that 'gameplay' will be the first of many successful ventures of a similar nature in our expanding last mile fulfilment activity. The 'Second Wave' of e-commerce partnerships is now finalised, and involves a number of key platforms. Our co- promotion with 'Yahoo!' will create a dual-branded site offering a unique promotion to 'Yahoo!' users from 17th April until 4th June. Building on our success with 'Open...', Domino's will go live nationally on Cable and Wireless interactive from May 2nd, and on a rolling basis in 11 Telewest regions from March to August. The company that helped us deliver the world's first interactive TV order, Yes TV, is rolling out into three major London areas and Domino's will have the same brand leading position on the Yes TV platforms in these areas. A deal has been finalised with BT Easicom, giving Domino's an exclusive presence in the Easicom walled garden from May, and negotiations are well underway with a number of mobile communications service providers with a view to launching Domino's WAP ordering in the next few months.' The Directors expect that the balance between the two halves of the year will more strongly favour the second half in the current year than in previous years and remain confident of producing a result in line with expectations for the year. They remain confident that the strategy of using e-commerce as another means of growing store sales, increasing the coverage of the system by the accelerated roll-out of new stores, and the growth in the number of stores operated corporately will deliver shareholders the anticipated growth in value. Contact: Domino's Pizza Stephen Hemsley, Finance Director 01908 580000 Tom Gadsby Buchanan Communications 020 7466 5000
UK 100

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