Acquisition

RNS Number:5542H
Punch Taverns PLC
17 February 2003


                                  News Release

For immediate release
                                                              16th February 2003

             Punch acquires 12 managed pubs from Honeycombe Leisure


Punch Taverns today announces the purchase of 12 managed pubs from Honeycombe
Leisure for #11.7 million.  In an innovative transaction, Punch will lease the
properties back to Honeycombe under a hybrid tied lease arrangement.  The
transaction releases capital to Honeycombe to continue to expand its business
and provides Punch the opportunity to acquire a high quality portfolio of pubs,
let to an excellent operator. The acquisition takes the total number of pubs in
Punch's estate to 4490.

Commenting on the transaction, Giles Thorley, Chief Executive of Punch, said, "
We are very pleased with this transaction.  We have admired the quality of
Honeycombe's operation for some time and have been discussing with them ways of
developing a mutually beneficial relationship.  This transaction brings together
the finance and capital capability of Punch with the retailing skills of
Honeycombe.  We see this as a template for similar deals in the future".


James Baer, Chief Executive of Honeycombe, commented, "This transaction
represents a significant milestone in Honeycombe's strategic development. Not
only does the transaction reduce substantially Honeycombe's bank borrowings but,
more importantly, it also establishes a relationship with Punch Taverns, the
UK's second largest pub owner, and provides a potential template for future
deals by which Honeycombe can grow its estate without the need to raise further
equity or take on additional debt."



Enquiries:



Punch Taverns                                   Tel: [phone]
Giles Thorley
Robert McDonald



Citigate Dewe Rogerson                          Tel: [phone]
Anthony Carlisle                                Mob: [phone]
Michael Berkeley                                Mob: [phone]
Sue Pemberton



Print resolution images are available for the media to view and download free of
charge from www.vismedia.co.uk



Further information on the Company is available on www.punchtaverns.com




Note to Editors:



Punch Taverns is a leading leased and tenanted pub company. As at 17th August
2002 the Company's portfolio comprised 4,302 pubs located across Great Britain.
The Group was established in 1997 when the original Punch Taverns portfolio of
pubs was acquired from Bass PLC. Punch's business has been enlarged over the
years principally through the acquisitions of Inn Business Group and the
Vanguard estate from Allied Domecq in 1999, as well as other incremental
acquisitions. The group generates income from three primary sources: sales of
beer and other products to retailers (lessees & tenants), rent from retailers
and profit sharing agreements with retailers for income from leisure machines.



In March 2002 Punch Taverns demerged the Spirit Group, comprising the managed
pub business with 1,040 pubs. Punch Taverns subsequently floated on the London
Stock Exchange (Ticker: PUB), with full listing from 27th May 2002.




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