RNS Number:6392J
Coffeeheaven International PLC
04 April 2003

                         coffeeheaven international plc

                       ("coffeeheaven" or the "Company")


                         Fundraising and Trading Update


coffeeheaven is pleased to announce that it's wholly owned trading subsidiary
CHI Polska S.A. ("CHIP"), through its broker in Poland, HSBC Securities Polska
S.A, in co-operation with Larchmont Finance S.A., has filed a prospectus with
the Polish Securities and Exchange Commission ("PSEC") for the issue of a series
of bonds up to a maximum nominal value (at the Company's discretion) of
20,000,000 Polish Zlotys (approx. #3.3M). CHIP has also adopted the appropriate
resolutions at an Extraordinary General Meeting to facilitate the bond issue
programme.

It is expected that the bonds will be publicly traded on CeTO, a regulated
over-the counter market and Poland's leading debt securities trading platform
partially owned by the Warsaw Stock Exchange. Approval from the PSEC is
anticipated later this month, with the first series of bonds being issued
shortly thereafter. Further details on the terms will be provided to
shareholders in due course.

Trading update and reasons for the bond issue programme

Like- for- like full year sales growth for the year just ended to 31 March 2003
has exceeded 30% and total year- on- year revenue growth has exceeded 100%.
These results are broadly in line with Directors' expectations. The Company
expects to announce its audited results for the year ended 31 March 2003 by the
end of July 2003.

The Company is also pleased to advise on progress with store development. With
12 stores currently trading, CHIP has 1 further store under construction and 4
sites under contract giving a total of 17 sites in Poland. In addition a number
of other sites in Poland are close to contract completion.

The Company's long term objective is to establish a national chain of branded
coffee- sandwich stores in Poland with representation in all of it's major
cities and in the process consolidate its market leadership positioning in the
sector of specialised retail coffee-sandwich stores. As these objectives are
being achieved in Poland the Company may, subject to satisfactory conditions,
look at opportunities to extend its operations into other central European
markets.

By 31 December 2003, subject to suitable sites becoming available and
appropriate market conditions, CHIP expects to be operating in up to 22 outlets.
The Company's longer-term objective is to establish a chain of at least 50
stores in Poland by 31 December 2006.

"This bond issue is a major step forward for coffeeheaven," says Richard
Worthington, CHI's Executive Chairman. "Not only should it provide the funding
required to complete CHI's current strategic objectives, but also gives us the
cost effective flexibility of draw down over the next three years. This is
particularly important in central European markets where sometimes the best
shopping mall sites have to be contracted months ahead of uncertain opening
dates in centres yet to be built and where potential acquisitions tend to appear
opportunistically".

Details of the bonds

CHIP proposes to issue in Poland, during the course of the next three years,
interest bearing secured bearer bonds with a redemption maturity of up to 7
years from the date of issue. The bonds may be issued in one or more series. The
nominal value of the first series of the bonds issued shall be not less than
5,000,000PLN (approx. #0.8M) and shall not exceed 14,000,000PLN (approx. #2.3M).
The maximum nominal value provided for the bond issue programme amounts to
20,000,000PLN (approx. #3.3M).

The bonds shall be offered by way of public subscription through CHIP's
intermediary HSBC Securities Polska S.A. to qualified institutional buyers. It
is intended that secondary trading in the bonds shall be conducted via a
regulated over-the-counter market for bonds operated by CeTO S.A. It is further
intended that secondary trading in the bonds shall be effected exclusively
between the qualified institutional buyers.

The bonds shall be secured by CHIP by way of a registered pledge over certain
assets. After its entry on the pledge register, the pledge will be the most
senior collateral in terms of satisfaction by bondholders with priority over
other receivables (with certain exceptions). The bonds carry no equity
conversion or similar rights.

Linked to the bonds is an additional pecuniary performance provision in favour
of the bondholders consisting of an annual payment based on the audited pre-tax
profits of CHIP, which will not exceed 16% of such amount. In addition the
bondholders shall have the right to nominate one member of CHIP's supervisory
board.


Enquiries:

Richard Worthington     Executive Chairman      +48 606818850 or +44 7973 442331

                                                               richworth@aol.com

Sandra Hewett           Shmr                                    +44 20 7689 3116

                                                               sandra@shmr.co.uk





                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

TSTVXLFBXZBXBBF