Acquisition

HG Capital Trust PLC
14 October 2005



The following is the text from a press release issued by HgCapital, which
manages the investment portfolio of HgCapital Trust plc alongside those of other
clients. The trust, which participates in all of HgCapital's investments, will
invest €6.8 million in Hofmann-Menu Group.


HgCapital acquires Hofmann-Menu Group from Pricoa Capital Group

Frankfurt, London 14 October 2005. HgCapital, the European sector-focused
private equity investor, and Pricoa Capital Group have signed an agreement on
the sale of Hofmann-Menu Group ('Hofmann'). The MBO of Hofmann will be mainly
financed through HgCapital's funds and bank debt. The transaction is subject to
approval from regulatory authorities.

Headquartered in Boxberg-Schweigern, Germany, Hofmann is a market-leading
provider of frozen food products as well as related on-site catering for small
business canteens and social organisations such as care homes, hospitals, and
schools in Germany. Hofmann differentiates itself from its competition through a
focus on quality (no preservatives and no additives) and a wide choice of
healthy and tasty menus. The company's centralised production process also
allows for significant cost advantages over traditional catering firms.

Hofmann is expected to generate sales of over €90m in 2005. It currently serves
and services 9,000 clients and produces 150,000 meals daily. The Group currently
employs more than 1,100 people.

Pricoa took full control of Hofmann in 1999 when it bought out a stake held by
Schroders, to whom it had already supplied mezzanine capital in 1996.

Dr Karsten Hartmann, Director, HgCapital Frankfurt, said:
'CEO Johannes Ulrich and his team have done a tremendous job at Hofmann. They
have significantly increased EBIT and put the business back on an attractive
growth path. Hofmann is the market leader in Germany in the production and
delivery of frozen food and a strong number two in the 'meals-on-wheels'
business. Hofmann is well positioned to continue its highly successful
development. We see a lot of untapped potential in the German market and look
forward to working with the management.'

Thomas Krausser, Vice President, Pricoa Capital Group stated:
'In the last four years, Johannes Ulrich and his team have set the course for
sustainable profitable growth at Hofmann. It has been a pleasure working with
them. With the support and backing of HgCapital, there is no doubt they are well
positioned to exploit market potential and take Hofmann to the next level.'

Johannes Ulrich, CEO of Hofmann, commented:
'Under the ownership of Pricoa Capital Group we successfully turned around the
business in a difficult market environment by continuously focussing on quality
and building an excellent sales force. We see very good potential for expanding
our position in servicing small businesses canteens, where many companies still
run inefficient in-house kitchens. Hofmann is also set to benefit from the
rising cost pressures in hospitals and the increasing number of nursing home
residents. In HgCapital, we have found a strong partner for pursuing our
strategy for growth.'

HgCapital was advised by Sal. Oppenheim, Lovells, and KPMG. Debt financing was
provided by HVB.

For further information

HgCapital

Dr. Karsten
Hartmann              [phone]   [e-mail]
Philipp Schwalber     [phone]   [e-mail]
                      --------------------

Pricoa Capital
Group
Alice Moeller         [phone]   [e-mail]

Hofmann Menu
Manufaktur GmbH
Clemens Bettermann    [phone]   [e-mail]

Maitland (for HgCapital)

Dr. Axel Ludeke       [phone]   [e-mail]
Peter Ogden           [phone]   [e-mail]






                      This information is provided by RNS
            The company news service from the London Stock Exchange