Lees Foods: agrees Patisserie UK settlement

Coatbridge / UK. (lf) Lees Foods PLC announces that it has reached a settlement with the former directors and shareholders of Patisserie UK Limited. Lees purchased Patisserie in 2007. The takeover was concluded on both sides in good faith at an agreed market value. However, due to unforeseen circumstances, anticipated sales did not materialise as originally forecast leading to a dispute between Lees and the former directors and shareholders of Patisserie. Lees is pleased to report that following a constructive process of discussion, an amicable settlement has been reached with no admission of liability on either side. Under the terms of the settlement, Lees will receive approximately 225’000 GBP, comprising 125’000 GBP in cash and, in addition, all of the 65’000 Lees ordinary shares issued to the shareholders of Patisserie as part of the consideration for the acquisition of Patisserie will be transferred to Lees or at Lees´ direction. The Consideration Shares have a market value at the current mid-market share price of approximately 100’000 GBP. The Company intends to buy-in the Consideration Shares for a nominal sum and then to cancel them. A general meeting will be convened for some time in January 2010 to seek the requisite shareholder approvals to effect this.

About: Lees Foods PLC, along with subsidiaries, is principally engaged in the manufacture and supply of bakery-related products. The Company´s subsidiaries include Lees of Scotland Limited, which manufactures confectionery products, meringues and other bakery products; The Waverley Bakery Limited, which Manufactures ice cream cones and wafers, and Patisserie UK Limited, which is engaged in the Manufacture and wholesale supply of patisserie products. The Company´s subsidiary Patisserie UK Limited discontinued its operations and was placed into administration in March 2009.