LTW London Town

RNS Number:7180K
London Town PLC
28 December 2007

28 December 2007


Not for release, publication or distribution in whole or in part in or into the
United States, Canada, Japan, Australia, the Republic of Ireland or the Republic
                                of South Africa

          LONDON TOWN PLC ("London Town" or "the Company" or "Group")

               Acquisition of GRS Inns Limited for �4.31 million
                Appointment of new Chairman and Chief Executive

The Board of London Town is pleased to announce the acquisition of GRS Inns
Limited ("GRS"), the managed pub operator and service provider to the leasehold
pub industry, and a restructuring of its main Board.

  * Acquisition of GRS to be satisfied by the issue of 4,117,647 new Ordinary
    shares in London Town at 85 pence per share and �485,000 in cash. London
    Town is also funding the repayment of GRS Directors' loans totalling
    �325,000.

  * John Sands, currently Chairman of GRS, will become Non-executive Chairman
    of the enlarged Group with immediate effect. Andrew Wilson, current Chairman
    of London Town, will remain a Non-executive Director

  * Appointment of Richard Gundry, currently Managing Director of GRS, as
    Chief Executive of the enlarged Group

  * Ian Robinson to remain Finance Director and Company Secretary

  * As the result of the acquisition, GRS Shareholders, including  John Sands,
    Richard Gundry and Howard Thornton now own approximately 13.5% of the
    enlarged Group equity

  * Acquisition adds 60 unbranded leasehold pubs operated by GRS to the
    existing 222-strong tenanted London Town portfolio and adds core pub
    management skills to the enlarged Group

  * For the year to 27 May 2007, GRS generated unaudited pre-tax profits of
    approximately �396,000 and has a stated a net asset value of �725,000
    against gross assets of �3.9m

  * Cenkos appointed as Nominated Adviser to the Company with immediate effect

John Sands, Chairman, said: "I am delighted to have joined the Board of London
Town following the acquisition of GRS Inns.  The combination creates a dynamic
estate of managed and tenanted pubs and injects a new managed house skill base
to the London Town business.   The new Board is excited by the prospects ahead."

For further information, please contact
David Rydell/Christopher Hamilton/Laura Pope
Bell Pottinger Corporate & Financial                0207 861 3232/ 07870 257 276




Acquisition of GRS Inns Ltd

The Board of London Town PLC announces that it has acquired GRS Inns Ltd ("GRS")
for a total consideration of �4.31 million.  The acquisition is to be funded
through the issue of 4,117, 647 new Ordinary shares in London Town at 85 pence
per share, �485,000 in cash and �325,000 in cash to repay GRS Directors' loans.
The new Ordinary shares are expected to be admitted to trading on AIM on 3rd
January 2008.

The aggregate cash payment of �810,000 has been funded from the proceeds of a
short term unsecured loan of �2.5 million made available to the Company from
Strand Associates Limited ( "Strand"), a company incorporated in England and
Wales. Strand provides the services of Andy Wilson, Ian Robinson (Finance
Director) and Graham Lello (joint company secretary) to the Company. The loan is
repayable with interest at 10%, calculated at quarterly rests, at the end of 360
days. There is no penalty for early repayment. The balance of the loan proceeds
will be used for general working capital purposes.

At the same time, the Company has taken the opportunity to restructure its main
Board.  John Sands, the Chairman of GRS, is appointed Non-executive Chairman of
the enlarged group and Andrew Wilson, current Chairman of London Town, will
remain a Non-executive Director. Richard Gundry, currently Managing Director of
GRS, is appointed Chief Executive of the enlarged group. Ian Robinson remains as
executive Finance Director and Company Secretary.  Howard Thornton, joint owner
of GRS with John Sands and Richard Gundry and others, remains in his current
position as Finance Director of GRS.

John Sands and Richard Gundry will be entering into service contracts with the
Company and take up their posts with immediate effect.

John Sands has over 25 years experience within the brewing and licensed
retailing industry at a senior level. He is responsible for the creation and
development of Pubmaster, which was sold to Punch Taverns in December 2003 for
�1.2 billion.   Under his tenure as Executive Chairman of Pubmaster Ltd he
completed Pubmaster's biggest ever purchase, with the acquisition of Inn
Partnership and its estate of 1200 pubs. Previous roles include Managing
Director of Cameron Inns and Managing Director of Brent Walker Inns & Retail,
where he held responsibility for developing a strategic business unit to manage
and trade in public houses. He is presently Chairman of the North East Tourist
Advisory Board, Invesco English & International Investment Trust, Wear Inns
Limited and a director of the Community Foundation.

Richard Gundry has had over thirty-five years experience in the pub industry and
was owner of GRS from 1995 to 2000 before its sale to Pubmaster. In 2001 he
joined Pubmaster as Group Operations Director, where he was responsible for 3400
pubs nationally. Following Pubmaster's sale to Punch in 2004 he pursued other
interests in the licensed trade before buying back GRS from Punch Taverns along
with John Sands and Howard Thornton in June 2006. His other experience in the
industry includes senior positions at Grant Met (Norwich Brewery) and Whitbread
& Co.

As a result of the acquisition the vendor shareholders of GRS, which includes
John Sands and Richard Gundry, now own approximately 13.5 per cent of the
enlarged Group's share capital.

GRS operates 60 managed pubs and provides managed pub services to the industry
throughout the UK. GRS offers a number of solutions to the licensed trade which
can be split into three categories: temporary management services, core estate
management and pub accountancy services.

For the year to 27 May 2007, GRS generated unaudited pre-tax profits of
approximately �396,000 and has a stated a net asset value of �725,000 against
gross assets of �3.9m. GRS was previously owned by Punch Taverns PLC.

The Board believes that the acquisition injects dynamic new leasehold pub
management skills into the existing business which is predominantly a tenanted
pub model. As a result, the Company will operate a flexible combination of
managed and leasehold pub businesses across a total estate of 282 outlets.

For the purposes of the AIM rules, the following past and present directorships
are stated:

Current and past directorships of John Sands (aged 60) held within the last five
years are set out below

Current Directorships:

North East Tourist Advisory Board
Invesco English & International
Investment Trust
GRS Inns Limited
Wear Inns Limited
Community Foundation

Past Directorships:

Pub.Com Limited
Tudor Street Acquisitions Limited
Inn Partnership Pension Scheme Limited
Inn Partnership Limited
Tudor Street Holdings Limited
CB (1994) Limited
Sister of Pubmaster Limited
Pubmaster Midlands Limited
Pubmaster Midlands (Holdings) Limited
Mercury Taverns (Holdings) Limited
The Dublin Pub Company Limited
Pubmaster Group Share Trustees Limited
Pubmaster Finance Limited
Pubmistress Limited
GRS Inns Limited
Silverhoney Limited
Coinmine Limited
Pubmaster Taverns Limited
Silverhoney Holdings Limited
Pubmaster Holdings Limited
Pubmaster Limited
Pubmaster Group Limited
Jennings Brothers plc
Definnitive Leisure Ltd
Wessex Taverns Ltd

There is no further information required for disclosure under paragraph (g) of
Schedule 2 of the AIM Rules, with respect to the appointment of John Sands.


Current and past directorships of Richard Gundry (aged 57) held within the last
five years are set out below

Current Directorships:

GRS Inns Limited

Past Directorships:

Pubmaster Ltd
Pubmaster Group Ltd
Pubmaster Holdings Ltd
Inn Partnership Ltd
Pubmistress Ltd
GRS Inns Ltd

There is no further information required for disclosure under paragraph (g) of
Schedule 2 of the AIM Rules, with respect to the appointment of Richard Gundry

                                     -ends-








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