Lees Foods plc ("Lees" or the "Company")

ISSUE OF SHARES TO EMPLOYEE SHARE OWNERSHIP TRUST

TRANSFER OF SHARES FROM EMPLOYEE SHARE OWNERSHIP TRUST

DIRECTORS' HOLDINGS

 21 July 2010

The Company announces that on 21 July 2010 it has issued 65,000 new ordinary shares of £1.00 each in the Company ("New Ordinary Shares") at a price of 166p per share to the Lees Share Ownership Trust (the "ESOT") an employee benefit trust of which employees and executive directors are beneficiaries. The New Ordinary Shares are being issued to enable the ESOT to grant awards to employees in the future, including a planned distribution of the Company's shares by the ESOT to eligible employees later this year.

The Company also announces that the ESOT has transferred 40,000 ordinary shares to certain beneficiaries of the ESOT. This includes four of the Company's executive directors, each of whom will receive 9,000 ordinary shares in the Company. A table of their resultant holdings is set out below:

Directors Interests:

Name                               Current Beneficial         New Beneficial     Percentage                 
                                         Interest                        Interest                 of shares in issue

                                                                                                         Post transfer

David Simson                     125,078                   134,078                  5.55

Clive Miquel                       72,473                      81,473                    3.37

Nadia Millar                        57,573                    66,573                    2.76

Albert Croll                         15,700                    24,700                    1.02              

Following the issue of the New Ordinary Shares to the ESOT and the subsequent transfer of 40,000 ordinary shares, the ESOT will hold a total of 120,288 ordinary shares representing 4.98 % of the current shares in issue.

The Company has applied for the New Ordinary Shares to be admitted to trading on the AIM Market of the London Stock Exchange. Trading is expected to commence on AIM on 27 July 2010. Following the issue of the New Ordinary Shares, the Company will have 2,414,751 shares in issue and does not hold any shares in Treasury. The New Ordinary Shares will rank pari passu with the Company's existing ordinary shares in all respects.

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