Watford Leisure PLC

('Watford Leisure' or the 'Company')

Update re Related Party Loans

Further to the announcement of 11 September 2009, Watford Leisure announces that the documentation in relation to the consolidated loan of £2.63 million from Valley Grown Salads ('VGS') to the Company has now been signed and the related security granted.  The terms of the loan have been varied in certain limited respects as follows:

1.     The loan will now be due for repayment on demand rather than within twelve months of the date of
         the agreement; and

2.      The rate of interest will now be 3.5 per cent. over Barclays Base Rate rather than over LIBOR and
         the interest will be paid monthly rather than on maturity.

The independent directors of the Company (that is, excluding Vincenzo and Giacomo Russo who jointly control VGS) consider, having consulted with Strand Partners Limited, that the amended terms of the loan are fair and reasonable insofar as the Company's shareholders are concerned.

A further announcement in respect of the Company's funding position will be made in due course.

Enquiries: 

Watford Leisure PLC    

Tel:  01923 496 000

Jimmy Russo, Chairman

Julian Winter, Chief Executive Officer

Strand Partners Limited

Tel:  020 7409 3494

Rory Murphy