Famous Brands - Amendment: Announcement of the acquisition of Coffee Contact

Famous Brands - Amendment: Announcement of the acquisition of Coffee Contact    
Famous Brands Limited                                                           
(Incorporated in the Republic of South Africa)                                  
(Registration number 1969/004875/06)                                            
Share code: FBR & ISIN code: ZAE000053328                                       
("Famous Brands" or "the group")                                                
VOLUNTARY ANNOUNCEMENT OF THE ACQUISITION OF COFFEE CONTACT (PTY) LIMITED       
("COFFEE CONTACT")                                                              
1.  INTRODUCTION                                                                
Shareholders are advised that Famous Brands ("FBR") has acquired a controlling  
interest in Coffee Contact, a business which roasts and blends premium coffee   
beans sourced globally for the restaurant and hospitality trade in Gauteng.     
Product is marketed under the Cafe Maestro brand.  The company also has the     
distribution rights for Tonino Lamborghini Cafe in South Africa.                
2.   DETAILS OF THE ACQUISITION                                                 
2.1  NATURE OF THE BUSINESS OF COFFEE CONTACT                                   
Coffee Contact is a private company, co-owned by Master Blender, Gerry Parginos,
and Charalambos Halamandaris.  Parginos started the business three years ago.   
He has extensive experience in the coffee industry, having been one of the      
driving forces behind the original House of Coffee"s roasting business founded  
in 1965, which was subsequently sold to AVI.                                    
2.2  RATIONALE FOR THE ACQUISITION                                              
Cafe Society culture is rapidly taking root in this country and Famous Brands"  
management is enthusiastic about the potential for growth in this sector.  In   
addition to the obvious synergies between the companies, Parginos"s coffee      
knowledge is unsurpassed in the South African coffee landscape, and importantly,
Coffee Contact offers compelling prospects.                                     
The rationale for this acquisition is twofold.  Coffee Contact"s products are   
currently only listed with independent restaurants and coffee shops, however,   
through the group"s catering and retail services divisions, this transaction    
will enable Famous Brands to grow Cafe Maestro"s current limited Gauteng        
exposure to the hospitality industry nationwide.  It will also afford           
introduction of the product into the retail sector.  Secondly, the group will   
explore opportunities to vend the product into its own franchise brands, which  
would have significant impact on the business"s current revenue.                
Ambitions for Coffee Contact will be implemented in a phased approach.  In the  
short term the objective is to expand the business nationally, thereby boosting 
Famous Brands" retail and hospitality offering, and in the medium term the      
intention is to investigate opportunities to supply coffee to the group"s       
franchise brands.                                                               
Coffee Contact was recently awarded the contract to supply coffee on all        
outgoing and incoming international SAA flights.                                
2.3  TERMS OF THE ACQUISITION                                                   
Famous Brands will acquire 70% of the shares and claims in Coffee Contact. The  
acquisition price is not material, and will be settled by a combination of cash 
and the issue of FBR shares at R12.50 per share. The earnings of the acquisition
will not have a significant impact on the results of the group.                 
Management have signed two year service agreements, incorporating restraint of  
trade undertakings.                                                             
Post-acquisition, the business which employs 17 staff, will continue to operate 
from its facilities in Meadowdale, Johannesburg.                                
The deal is effective from 1 December 2006 and is subject to certain conditions 
precedent, including a due diligence exercise.                                  
Midrand                                                                         
4 December 2006                                                                 
Sponsor                                                                         
Java Capital (Proprietary) Limited                                              
Date: 04/12/2006 01:36:04 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department