RNS Number:4989S
Madisons Coffee PLC
26 November 2003





Date           26 November 2003



Contacts       Gareth Lloyd-Jones, Chief Executive
               Madisons Coffee plc                         Tel: 020 7929 5599



               John Bick, Trevor Phillips
               Holborn                                     Tel: 020 7929 5599


                              MADISONS COFFEE PLC

                                  ("Madisons")



            Sale of Group's Coffee Operations for upto #2.30 million



Madisons has completed the sale of the Group's coffee operations for an initial
cash consideration of #2.20 million payable on completion.  In addition the
Group will receive a deferred cash consideration of #0.10 million subject to the
completion of an existing property transaction.  Under the agreement, the entire
issued share capital of two Madisons' subsidiaries, City Gourmets Limited 
("CGL") and Carwardine Limited (together the "Companies") have been acquired by
the Out of Town Group Limited ("OOTG").



Group Strategy



Following the sale, Madisons will continue to build on the success of the
Group's Richoux restaurant format through the organic development of the
existing Richoux restaurant business in the UK, the franchising of the brand
Internationally and through possible opportunities to selectively acquire
additional restaurant outlets.



In addition the Board proposes to review other suitable branded restaurant
acquisition opportunities in the casual dining market, where there is a strong
commercial and geographic logic to build and develop certain formats into
high-growth, restaurant concepts.



Commenting, Gareth Lloyd Jones, CEO of Madisons, said:



"Over the last two years we have been successful in improving the financial
performance and value of the coffee business against the backdrop of an
incredibly competitive market. Its sale will allow us to exploit the
opportunities available in the restaurant sector where we already have an
attractive brand.



The cash proceeds will enable us to focus all our efforts on growing the
restaurant business which I believe is an exciting opportunity, where we can
build on our success to date and deliver long-term value to our shareholders."


Sale of City Gourmets Limited ("CGL") and Carwardine Limited

(the "Companies")



The Companies together own and operate the Group's coffee businesses, "Madisons
Coffee", "Madisons Speciality Coffee Bars" and "Carwardine's of Bristol", across
a total of 27 sites.



Madisons has completed the sale of the Group's coffee operations for an initial
cash consideration of #2.20 million payable on completion.  In addition the
Group will receive a deferred cash consideration of #0.10 million subject to the
completion of an existing property transaction.



Under the agreement, the entire issued share capital of two Madisons'
subsidiaries, City Gourmets Limited ("CGL") and Carwardine Limited (together the
"Companies") have been acquired by the Out of Town Group Limited ("OOTG").



The initial cash consideration will be reduced by #0.70 million, which is the
amount equal to the estimated working capital requirement of the Companies,
which have been assumed on completion by OOTG.



The actual working capital requirement will be calculated by reference to the
agreement of completion accounts within three months and the actual adjustment
made accordingly.



The net book value of the fixed assets of the Companies was #1.27 million at 19
October 2003.  In the management accounts (which have not been audited) for the
52-week period to 29 June 2003 the coffee businesses being sold produced a
turnover of #6.45 million and a profit before tax of #0.07 million.



Prior to the sale of the shares of the Companies the Madisons' group have
carried out a reorganisation pursuant to which (i) Richoux Limited purchased
from CGL the business of Richoux Restaurants at a market value of #2.50 million
(ii) Madisons purchased the entire share capital of Richoux Limited from CGL
(iii) CGL purchased from Newultra Limited the business of the Rendezvous
Restaurant in Windsor for a consideration of #50,000 and (iv) Madisons purchased
from CGL various assets and liabilities relating to Madisons' head office
function in Putney, London for #1.



Under the terms of the agreement the Group has agreed to change its name,
subject to shareholder approval, by no later than end of December 2004.



The consideration received from the sale of the Companies will give rise to a
profit on disposal that will be calculated by reference to completion accounts.
Such profit (net of transaction costs) will be treated as an exceptional item in
Madisons' next interim results.

                                     -ends-


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