OREANDA-NEWS. October 22, 2012. Rosinter Restaurants Holding, OJSC (Rosinter), the leading casual dining chain in Russia and the CIS (MICEX-RTS ticker: ROST), announces a change in of the form of its cooperation with Whitbread, one of the UK’s leading hospitality company and owner of the Costa Coffee brand. Across Russia, the expansion of the coffee shop chain has been managed by a Russian-UK joint venture, which has become a fully owned subsidiary of Rosinter and will be operating the Costa Coffee chain based on a direct franchising model. On June 13, 2012 Rosinter has acquired from Whitbread Group the remaining 50% stake in the joint-venture and the parties signed appropriate amendments to the franchise agreement. The agreement is valid until 2023 and grants exclusive rights for the development of Costa Coffee outlets within the territory of the Russian Federation. Rosinter also has the right to enter into sub-franchise agreements under which its partners can open one or more coffee shops. Currently Rosinter operates 22 coffee shops in Moscow and St. Petersburg (including airports).

Kevin Todd, President and CEO, Rosinter Restaurants Holding, OJSC:

"Whitbread has put trust in Rosinter by signing the franchise agreement that will enable us to make quicker more flexible decisions regarding the expansion of the coffee-store chain. Besides, the use of a sub-franchise model for the Costa Coffee brand opens new opportunities for both existing and potential partners and should have an overall favorable effect on the chain growth. Although the coffee-store market is rather saturated, we believe it offers good prospects and a definite niche for the brand of Costa Coffee whose competitive advantage is derived from its unique atmosphere and premier coffee hand-made of a specialty blend by our highly professional baristas. The Company will inform about the opening of subfranchise model in a timely manner”.