Further re Possible Offer

RNS Number:0950D
Big Food Group PLC
17 September 2004

Not for release into the United States of America



17 September 2004







                The Big Food Group plc ("BFG" or the "Company")

       Preliminary approach regarding a possible offer and trading update

Approach and possible offer


The Big Food Group has received a preliminary approach from Baugur Group hf 
("Baugur") and certain other investment partners regarding a possible offer for
all of the issued and to be issued share capital of the Company at 110p in cash
per share.   This approach is preliminary and there are a number of
pre-conditions, including due diligence, which need to be satisfied before any
formal offer can be made.  There can therefore be no certainty at this stage
that an offer for the Company will be forthcoming. The Board has agreed to allow
Baugur to conduct due diligence on the Company in order to explore further
whether a formal offer can be put forward.  This statement has been made with
the approval of Baugur and certain other investment partners, who have reserved
the right to make an offer at a lower price with the agreement of the Board of
BFG.



Trading update



The Board considers it appropriate to provide an update on current trading in
view of the above circumstances.  In its announcement of 12 July 2004, BFG
stated that the grocery trading environment was difficult.  Since then, weather
conditions have been generally worse than last year, impacting the performance
of a number of retailers.  The environment has also continued to be challenging
in the light of consolidation in the grocery market and increasing price
competition, which is expected to continue.



Against this background, like-for-like sales for the 10 week period to 10
September 2004 and the 23 weeks to 10 September 2004 were as follows:


                                                           10 weeks                      23 weeks
                                                                  %                             %
Group                                                         (3.2)                         (1.7)
Iceland                                                       (3.8)                         (2.6)
Booker                                                        (4.1)                         (2.4)
   - tobacco                                                  (3.4)                         (1.6)
   - non tobacco                                              (4.5)                         (3.0)
Woodwards                                                     27.1                          29.7



The period reported on above accounts for 23 weeks out of BFG's 24 week first
half, the results of which are expected to be announced around the middle of
November.  Throughout this period, the Company has continued to pursue its focus
on cost control and margin protection, which has largely mitigated the impact of
the sales performance at the operating profit level.




The new format Iceland stores continue to perform well, with 32 refits completed
over the 10 weeks, bringing the total to 218.  At Booker, the Premier fascia
continues to expand with 113 members recruited during the 10 weeks, bringing the
total to 1699 members.



Average net debt for the 23 weeks to 10 September was approximately #245
million.









Enquiries:
The Big Food Group

Bill Grimsey - Chief Executive                      020 7796 4133
Bill Hoskins - Finance Director                     on 17 September 2004 only

gcg hudson sandler
Michael Sandler                                     020 7796 4133
Andrew Hayes
Noemie de Andia

Citigroup Global Markets Limited

Ian Hart                                            020 7986 4000
Ted Kuh
Ed Matthews (Corporate Broking)

UBS Limited

Adrian Haxby                                        020 7567 8000
Michael Lacey-Solymar






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