Trading Statement

Heavitree Brewery PLC
5 January 2001

Heavitree Brewery PLC

Trading Announcement for Year Ended 31st October 2000



Heavitree Brewery PLC announces that, with the year-end audit almost complete,
it is now apparent that Group Profit Before Tax will fall short of last year's
figure by approximately 20%.

The problems highlighted by the Chairman in his half-year statement have had a
marked effect, and in particular, the interim arrangements for the operation
of some houses, under which no rent is paid, have proved both more difficult
to resolve and more expensive than expected. However, the situation is now
improving as significant changes have recently been concluded in this area,
with increasing numbers of houses being successfully returned to tenancy and
others, that no longer fit the Board's declared policy of upgrading the
estate, marketed for sale.

The performance of our managed house subsidiary, Heavitree Inns, has been a
matter of concern throughout the year. The anticipated turnaround in the
summer months did not materialise and little change can be expected from the
half-year position. We do, however, remain confident in the quality and
prospects of our managed estate and, following the termination of arrangements
with Hall & Woodhouse as management agents, we have appointed the proven pub
management specialists, Albion Pub Contracts. This company took up
responsibility for Heavitree Inns from 1st November 2000.

In the absence of unforeseen circumstances the Directors intend to recommend
an unchanged final dividend of 5.25p.



5 January 2001