Famous Brands Relishes Exceptional Quarter

Famous Brands Relishes Exceptional Quarter                                      
Famous Brands Limited                                                           
(Incorporated in the Republic of South Africa)                                  
(Registration number 1969/004875/06)                                            
Share code: FBR  ISIN code: ZAE000053328                                        
("Famous Brands")                                                               
FAMOUS BRANDS RELISHES EXCEPTIONAL QUARTER                                      
- Stellar performance across operating divisions                                
- System wide retail sales up 21%                                               
- Like-on-like retail sales up 14%                                              
- Food Services division turnover up 42%                                        
- Establishment of Catering Services division to achieve strategic intent       
Johannesburg, 24 February 2006:  Potency of the group"s brands, optimisation of 
capex and acquisitions, and the favourable economic climate combined to ensure  
that Famous Brands delivered its best ever performance over the recent holiday  
season.                                                                         
System wide retail sales (including new restaurants) rose 21%, while likeonlike 
retail sales grew 14% across the franchise network over the quarter 01 November 
2005 to 31 January 2006 compared with the prior year.                           
Kevin Hedderwick, Chief Operating Officer, says:  "Without exception, each of   
the group"s brand"s improved like-on-like sales and system wide turnover: Strong
like-on-like sales support management"s view that there is sustainable robust   
growth potential in the home meal replacement sector."                          
He comments: "Sales growth at Debonairs Pizza, Steers and Wimpy is off a high   
base and therefore particularly noteworthy.  Debonairs Pizza"s likeonlike sales 
increased 26% and system wide sales grew 35%.  This phenomenal performance can  
be attributed to a range of factors:  the massive growth of the category        
generally as pizza establishes itself as a way of life - a hitherto unknown     
phenomenon amongst black consumers; the convenience factor offered by virtue of 
home delivery and the "sociable" element associated with pizzas, which promotes 
the concept of "sharing".                                                       
Organic turnover growth was boosted by the opening of a further 33 restaurants  
across the network, bringing the total to 1 163 restaurants.  Of the stores     
opened, 9 were Steers, 5 Debonairs Pizza"s (including 1 in Nigeria), 11 Wimpy"s,
4 FishAways and 4 House of Coffee restaurants.                                  
Hedderwick comments:  "The exponential growth of the emerged middle class and   
the evolving trend of out of home consumption continue to present new markets.  
The group will, for example, open 4 restaurants in the Jabulani Mall currently  
under construction in Soweto.  The aspirational nature of our brands continues  
to afford leverage in securing good sites in prime shopping centres."           
The vigorous performance delivered by the Franchise operation accelerated growth
in the Food Services division.  Sales for the quarter improved 42%, with the    
highest turnover ever recorded for the group"s butchery and bakery facilities in
December.  Trufruit and Baltimore also reported highest ever sales in December. 
Year on year sales of fruit juice and ice cream are up 65% and 49% respectively.
Integration of the manufacturing component of the Wimpy business is now well on 
track.  In-house production of Wimpy"s mustard sauce is underway.  Capex        
investment in the group"s butchery and bakery has been commissioned and with    
effect from February, is now on-stream.  Burger patty production is currently in
trial and it is anticipated that the group will be producing 50% of its patty   
requirement by April and 100% by May.  Production of hamburger rolls and Wimpy  
relish is scheduled for 1 April, with the final component, Wimpy tomato sauce,  
scheduled for production in September.                                          
The strong out of home consumption boom and the expansion of the food services  
sector per se also provides major growth potential for the group outside of the 
existing franchise network customer base.                                       
Hedderwick says: "Our strategic intent is to grow our position as the leading   
branded QSR / casual dining franchisor in Africa using this platform to         
diversify into an integrated food and beverage company.  Accordingly, we have   
compartmentalised the group"s divisions to best effect that intent:  the Food   
Services division will continue to focus on supplying our franchise business,   
while in parallel, we have established a Catering Services division which will  
focus specifically on the vast opportunity presented by independent, external   
customers in the food services sector, including amongst others, the hospitality
sector."                                                                        
"In addition to our manufacturing component, we have extensive warehousing and  
distribution infrastructure which provides us with much sought after route to   
market.  The food services sector has potential to be a major category, and we  
are tremendously excited about the opportunities afforded," he says.            
Hedderwick concludes: "Continued compound growth at these levels will be        
challenging, but we are confident that Famous Brands is now optimally structured
to exploit opportunities across the group, in the franchise, food services,     
retail and catering services businesses."                                       
FOR FURTHER INFORMATION                                                         
Kevin Hedderwick         Paris Papageorgiou       Del-Maree English             
Chief Operating Officer  Group Financial          Investor Communications       
                         Director                                               
Famous Brands            Famous Brands                                          
Office:   011 651 5812   Office:   011 651 5902   Office:   021 670 2025        
Mobile:   083 300 2530   Mobile:   082 453 7042   Mobile:   083 395 8608        
Date: 24/02/2006 10:00:09 AM Supplied by www.sharenet.co.za                     
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