FBR - Famous Brands Limited - Famous Brands` leisure strategy continues to

FBR - Famous Brands Limited - Famous Brands` leisure strategy continues to      
unfold with acquisition of Iconic Brands - Milky Lane and Juicy Lucy            
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` LEISURE STRATEGY CONTINUES TO UNFOLD WITH ACQUISITION OF ICONIC  
BRANDS - MILKY LANE AND JUICY LUCY                                              
Johannesburg; Monday, 21 February 2011:  Famous Brands (JSE share code:  FBR)   
has acquired the franchise agreements, trademarks and intellectual property of  
Milky Lane and Juicy Lucy from Java Brands for R30,95 million. The acquisition  
will be funded through a combination of existing cash reserves and short-term   
debt, and will be earnings enhancing.  The transaction is subject to            
successful fulfilment of conditions precedent and is effective 01 March 2011.   
Famous Brands` Chief Executive Officer, Kevin Hedderwick, comments, "The        
acquisition of these iconic South African brands serves to further round off    
our franchised food service leisure portfolio.  The compelling purchase         
consideration and synergies afforded by the integration of Milky Lane and       
Juicy Lucy into the Group`s business model make this transaction an exciting,   
low-risk one, which will deliver returns for shareholders from the outset."     
Craig MacKenzie, Java Brands` Director, says, "This transaction heralds an      
exciting phase in the life cycle of the much loved Milky Lane and Juicy Lucy    
brands.  The highly developed support infrastructure and the economies of       
scale introduced to the business by Famous Brands are likely to add             
significant value to the franchised partners.  Both concepts are well           
positioned to benefit from Famous Brands` proven formula for enhancing and      
growing world-class brands."                                                    
MILKY LANE                                                                      
Launched some 50 years ago by Famous Brands` founder George Halamandres, Milky  
Lane is South Africa`s original soft-serve quick service / casual dining ice    
cream concept, and one of very few brands in this category to have succeeded    
where others have failed, including several global players.  The business       
consists of 96 franchised outlets.                                              
Hedderwick says the rationale for the acquisition is comprehensive.  "Milky     
Lane is the soft-serve ice cream category leader, which aligns with the         
Group`s strategy to grow its portfolio of best in class franchised leisure      
brands.  Furthermore, soft-serve is the fastest growing ice cream category in   
the world at the moment, and continues to gain traction in South Africa too."   
He notes, "As the emerged market continues to enter the mainstream economy,     
driving growth in this category, there is an opportunity to extend the Milky    
Lane footprint in terms of store numbers, through both the existing sit-down    
as well as take-away trading formats, thereby improving accessibility to        
prospective franchisees and mass market consumers."                             
Hedderwick comments, "Notwithstanding the emerged market opportunities, Milky   
Lane`s product offering is one of South Africa`s best kept secrets but the      
brand needs to be reawakened and re-communicated to South African consumers at  
large.  The menu and product innovation that currently exist for Milky Lane     
are world-class, but consumer awareness thereof is negligible. This in itself   
represents significant upside for existing store growth."                       
He adds, "Another key factor supporting this acquisition is that for a long     
time we have been exploring dessert solutions for certain of our other brands   
and hence we will be investigating the opportunity to extend the Milky Lane     
brand and or parts of the Milky Lane intellectual property into a `store        
within a store` concept across other parts of our network."                     
Hedderwick continues, "A significant driver surrounding this acquisition is     
our ability to backward integrate the supply of soft-serve ice cream to the     
existing Milky Lane network via our Baltimore Ice Cream plant which has the     
spare capacity to take on this business.  This additional manufactured volume   
on its own is a compelling case to acquire the Milky Lane business and          
significantly reduces the price : earnings hurdle rate."                        
JUICY LUCY                                                                      
This brand, which has been in existence for 40 years, currently trades out of   
18 franchised restaurants nationally.  Hedderwick says, "Juicy Lucy pioneered   
a niche in the health-centred convenience food category, and whilst the brand   
has lost its way over time, the potential to restore this offering to its       
former status is evident, more so given the current shift by consumers to       
health-conscious eating."                                                       
"Juicy Lucy is a well-loved niche South African brand which affords us the      
opportunity to fill a gap in our portfolio.  We have for some time been         
evaluating a range of specialist and stand-alone health food-focused type       
brands and are happy that Juicy Lucy offers the Group entry into this           
category."                                                                      
Hedderwick concludes, "Our acquisitions aim to achieve several strategic        
objectives:   ensuring a synergistic fit with our business model and core       
competence of food service franchising; the opportunity to be a leading player  
in the categories in which we compete; and unlocking value for shareholders.    
I am delighted that this transaction comprehensively meets those criteria."     
ends                                                                            
Notes to editors:                                                               
The Group`s brand portfolio includes Steers (490), Wimpy including UK (616),    
Debonairs Pizza (279), FishAways (112), Mugg & Bean (109), tashas (7), House    
of Coffees (17), Brazilian/Brazilian Cafe (51), Blacksteer (6), Giramundo (4),  
KEG (26), McGinty`s (5), Vovo Telo (3) and O`Hagan`s (18).  The Group also      
manufactures and supplies its franchisees and the retail trade with a wide      
range of meat, sauce, bakery, ice cream, fruit juice and mineral water          
products.                                                                       
For further information:                                                        
Kevin Hedderwick              Del-Maree English                                 
Chief Executive Officer       Investor Communications                           
Famous Brands Ltd             Mobile:  083 395 8608                             
Telephone:  011 651 5812                                                        
Famous Brands` website:  www.famousbrands.co.za                                 
Sponsor                                                                         
Standard Bank                                                                   
Date: 21/02/2011 08:00:01 Supplied by www.sharenet.co.za                     
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