RNS Number:7222U
Scottish & Newcastle PLC
28 January 2004


28 January 2004

                            Scottish & Newcastle PLC

Scottish Courage, S&N's UK operating division has this morning made the
following announcement regarding an intended restructuring of its technical
services:

Carlsberg-Tetley and Scottish Courage Propose Innovative Technical Services
Venture in the UK

Carlsberg-Tetley and Scottish Courage announced today that they are in
discussions to launch a new independently managed technical services company in
the UK. Technical service operations across the brewing industry provide the
equipment and associated support to dispense draught beer from cellar to glass.

Both parties believe that this proposal is the best way to secure significant
benefits for customers, including enhanced services, quicker response times and
unrivalled product quality. Furthermore, benefits would be derived through
streamlined processes, reduced administration costs and a reduction in
duplicated activities.

The new company, Serviced Dispense Equipment Ltd (SDEL), would own all the
dispense assets of both brewers. The pooling of the assets would improve
efficiency and simplify processes and the new company would be owned by
Carlsberg-Tetley, Scottish Courage and companies controlled by Mr. Mike Foster
and Mr. Nick Bryan respectively. It is planned that SDEL will acquire total
assets to a value of #115m.

In addition, a new service company, called Innserve Ltd, would be formed to
manage the servicing and installation of technical services equipment on behalf
of Serviced Dispense Equipment Ltd. The new service company, would be wholly
owned by Mike Foster and Nick Bryan. Messrs. Foster and Bryan have extensive
experience in the brewing and licensed retail industry.

The proposal will shortly be submitted to the OFT for regulatory approval. A
decision is expected in approximately 4 weeks. Full consultation with staff
affected, will commence immediately and further details of the business will be
announced in due course. It is anticipated that the new service company will be
fully operational in the autumn of 2004.

ENDS

For further information please contact:

Scottish & Newcastle PLC
Jeremy Blood (media) Tel. 0131 528 2130
Bridget Walker (investors) Tel. 0131 528 2132

Notes to editors:

(1) Two new companies would be created upon OFT approval:

Serviced Dispensed Equipment Ltd (SDEL) will own the technical services capital
assets of both Scottish Courage and Carlsberg-Tetley and will be contracted to
maintain and procure the replacement of those assets. SDEL will be jointly owned
by Carlsberg-Tetley, Scottish Courage and companies controlled by Messrs. Foster
and Bryan.

Innserve Ltd would be formed and wholly owned by Messrs Foster and Bryan and
would be appointed as exclusive contractor to undertake the day to day provision
of technical services work on behalf of the two brewers. Carlsberg-Tetley and
Scottish Courage employees currently working in technical services would
transfer to Innserve Ltd. The two brewers currently employ around 140 and 390
people respectively in this area of their businesses.

(2) Career Details of Nick Bryan and Mike Foster

After financial roles with Lonrho and Carnation Foods, Nick Bryan joined Hanson
in 1983 as a Financial Controller. He joined Courage in 1987 as Finance and
Strategy Director and was made Managing Director following the acquisition of
Grand Metropolitan's beer interests in 1991. Following the sale of Courage to S&
N in 1995, Mr Bryan joined the private equity firm Investcorp as a member of the
Management Committee and as either Chairman or Investor Director of Investcorp's
European investments. He left Investcorp in 2001 to establish BDT Capital
Partners LLP. Nicholas Bryan qualified as a Chartered Accountant in 1979.

Mike Foster joined Courage Ltd in 1983 as Marketing Director having spent the
previous 15 years working in Europe, USA and Japan for the Colgate Palmolive
Company. He was appointed CEO of Courage in 1988 and Executive Chairman in 1991.
He left Courage in 1995 and was CEO of the Inntrepreneur Pub Company until its
sale to Nomura in 1998. Mike has held a number of non-executive positions and
was Chairman of the British Beer and Pub Association from 1998 - 2001. He is
currently non executive Chairman of W H Brakspear & Sons plc and Roxton, Bailey,
Robinson Ltd and is also a non-executive director of Punch Taverns plc.



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