Issue of Equity

RNS Number:3051S
Prezzo PLC
20 November 2003

                                   PREZZO PLC

                    PLACING OF 4,135,625 NEW ORDINARY SHARES


Prezzo plc ("Prezzo" or "the Company") is pleased to announce that it has raised
approximately #2.7million, before expenses, through a placing ("the Placing"),
predominantly with existing shareholders of 4,135,625 new ordinary shares of 20p
each ("New Shares") at a price of 65 pence per share. The Placing is conditional
upon admission of the New Shares to trading on AIM.


The net proceeds from the Placing will be used by the Company to continue the
expansion of its restaurant chains, specifically for the purchase and fit out of
two freehold sites in Brentwood and Norwich. The Directors anticipate that these
two purchases, together with commitments for a further seven restaurants secured
following the Company's #6.0 million placing in May 2003, will bring the
aggregate number of sites owned or leased to 34 at the end of 2003, of which 26
are expected to be open for business at the year end. Further restaurant
openings are scheduled for the first half of 2004.


Certain of the directors of the Company ("Directors") have subscribed, in
aggregate, for 408,000 New Shares through the Placing and following these
subscriptions, they will have the following beneficial interests:

Name           Subscription   Number of Ordinary      Percentage of enlarged issued
                              Shares after the        share capital after the
                              Placing                 Placing

Jonathan       385,000        6,968,333               15.44
Kaye

Michael        23,000         204,667                 0.45
Carlton


In addition, the Company was today notified that Phillip Kaye, a consultant to
the Company, subscribed for 2,533,577 New Shares through the Placing. Following
this subscription, Phillip Kaye has a beneficial interest in 23,123,577 ordinary
shares, representing 51.25 per cent. of the Company's enlarged issued ordinary
share capital.


As Jonathan Kaye and Michael Carlton are Directors and Phillip Kaye is a
substantial shareholder of the Company, the participation by them in the Placing
constitutes a related party transaction (as defined in the AIM Rules). John
Lederer, the Non-executive Director who is not participating in the Placing,
having consulted with Evolution Beeson Gregory Limited, Prezzo's nominated
adviser, considers that the terms of the transaction are fair and reasonable
insofar as the Company's shareholders are concerned.


Application will be made for the New Shares to be admitted to trading on AIM and
dealings are expected to commence on 26 November 2003.


20 November 2003






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