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12 October 2009

Administration of Tootsies Restaurants Limited, Urban Dining Limited, Tootsies Holdings Limited, TD Scotland Limited

The Board of Clapham House announces that it has withdrawn support and funding to its subsidiary Tootsies/Dexters business. As a consequence, the subsidiary companies Tootsies Restaurants Limited, Urban Dining Limited, Tootsies Holdings Limited and TD Scotland Limited ("Tootsies") have been placed into administration. BDO LLP were appointed as administrators of Tootsies on 12 October 2009 (the "Administrators").

All other parts of The Clapham House Group PLC, namely the Gourmet Burger Kitchen and The Real Greek businesses, are unaffected by this action and will continue to trade as normal.

Clapham House has provided significant financial support to Tootsies since its acquisition in May 2006. However, given the current economic outlook and the prolonged downturn in trading and profitability at the Tootsies business, the Clapham House Board believes that there is little prospect of the Tootsies business as a whole generating a profit in the near future. As a result, and after extensive review, the solvent restructuring of the Tootsies business is not considered to be a viable solution. The Board of Clapham House has therefore acted now to protect the Company's profitable Gourmet Burger Kitchen and The Real Greek businesses as well as its shareholders and the majority of its staff.

The Administrators have informed Clapham House that subsequent to their appointment this morning a sale agreement was entered into to sell 11 of the 21 restaurant units currently operated by Tootsies to Giraffe Concepts for a consideration of £2.5m (before costs). The sale will preserve approximately 25 full time and over 250 part time jobs. The Administrators are continuing to explore opportunities to dispose of the remaining 10 Tootsies/Dexters restaurant units in order to maximise returns to creditors of Tootsies.

Prior to these actions, the Clapham House Board consulted with the Company's bankers, who confirmed that Clapham House's bank facilities are unaffected by these changes and remain available until June 2012. Any net proceeds received by the bank from the Administrators will be applied to reduce the Company's indebtedness under these banking facilities.

David Page, Chairman of The Clapham House Group PLC, said:

"We have taken the steps described in this announcement with great regret, having spent considerable time researching alternative strategic options for Tootsies. We believe that this is the best course of action to protect shareholder value whilst minimising job losses.

Looking to the future the management team will focus on building the excellent reputation and strength of its two core brands, Gourmet Burger Kitchen and The Real Greek."

Directors Disclosures:

Pursuant to paragraph (g) of Schedule 2 of the AIM Rules for Companies, the Company announces that its directors, David Page, Paul Campbell and Nick Wong, are directors of Tootsies Restaurants Limited, Urban Dining Limited, Tootsies Holdings Limited and TD Scotland Limited which were placed into administration today.