LTW London Town

RNS Number:9656Q
London Town PLC
27 March 2008


27 March 2008

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")

                   Short term unsecured loan of �2.5 million

The Board of London Town announces that a short term unsecured loan of �2.5
million ("the Loan") has been made to the Company by Burac Invest and Trade and
Corp ("Burac"). Burac holds 48.4% of the issued share capital of the Company on
behalf of The Horizon Charitable Trust. The Loan carries interest at the rate of
10% per annum and is repayable no later than 20 March 2009. The proceeds of the
Loan will be used to provide the balance of funding of approximately �300,000
for the acquisition of two pubs, to repay approximately �900,000 of bank
borrowings of GRS Inns Limited, the Company's wholly owned subsidiary, and the
balance will be used for general working capital purposes. The total
consideration for the two pubs being acquired is �845,000 of which approximately
�545,000 will be provided by bank debt.


Burac, being a substantial shareholder of London Town, is a related party for
the purposes of the AIM Rules and, under the AIM Rules, the Loan from Burac is a
related party transaction. Having consulted with Cenkos Securities plc, London
Town's nominated adviser, the directors of London Town consider that the terms
of the Loan are fair and reasonable insofar as its shareholders are concerned.

                                     -ends-

For further information, please contact

David Rydell/Christopher Hamilton/Laura Pope
Bell Pottinger Corporate & Financial                     020 7861 3232

Nicholas Wells
Cenkos Securities plc                                    020 7397 8924



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

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