Re Agreement

Whitbread PLC
11 March 2004

11 March 2004

                                 WHITBREAD PLC



                 Britannia Soft Drinks - Signing of Agreements



The board of Whitbread welcomes the announcement today by InterContinental
Hotels Group PLC ('IHG') that its soft drinks subsidiary, Britannia Soft Drinks
Limited ('BSD'), has signed agreements with PepsiCo, Inc. ('PepsiCo') that
secure new long-term Exclusive Bottling Agreements. BSD's existing shareholders
have also signed an agreement with BSD and PepsiCo which creates an opportunity
to undertake an initial public offering ('IPO') of BSD.



Renewal of Exclusive Bottling Agreements



BSD has successfully renewed its Exclusive Bottling Agreements with PepsiCo on
broadly similar terms to those of the current agreement. This maintains BSD's
exclusive rights in Great Britain to the Pepsi and 7UP brands. The agreement has
a term of 15 years and will be automatically extended by a further 5 years on
IPO.



Opportunity for Initial Public Offering



BSD's existing shareholders have agreed to exchange PepsiCo's 10% shareholding
in Britvic Holdings Ltd, a subsidiary of BSD, for a 5% share in BSD.  The
existing shareholders will reduce their holdings in BSD on a pro rata basis.



The ownership of BSD is now as follows:


InterContinental Hotels Group                               47.50%
Allied Domecq                                               23.75%
Whitbread                                                   23.75%
PepsiCo                                                     5.00%



BSD's shareholders have also agreed subject, inter alia, to market conditions,
to consider an initial public offering of BSD,  between 1 January 2005 and 31
December 2008.



Whitbread equity accounts for its interest in BSD.



David Thomas, Chief Executive, said:  'These new long-term exclusive bottling
agreements strengthen the already successful relationship between BSD and
PepsiCo's brands.  The IPO and share sale agreements will provide the
opportunity, should market conditions allow, for all shareholders to realise the
value in the growing business they have developed.'

                                     -ends-

Please contact:


David Reed                    020 7806 5436
Julie Weldon                  020 7806 5443




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