RNS Number:3887N
Coffeeheaven International PLC
10 July 2003


                         coffeeheaven international plc
                       ("coffeeheaven" or the "Company")

                Purchase of Preference Shares, Notice of EGM and
                          Placing and Additional Listing

coffeeheaven has today written to shareholders with a notice convening an
Extraordinary General Meeting of the Company to be held on 5 August 2003 for
shareholders to approve, inter alia, the purchase by coffeeheaven of the
preference shares in the Company held by Bakery Services plc.

At the time of the coffeeheaven de-merger from Bakery Services plc ("Bakery
Services") and its admission to AIM in December 2001, Bakery Services was issued
with 990,000 preference shares of #1 each ("Preference Shares") in coffeeheaven
in cancellation of the indebtedness owed by coffeeheaven to Bakery Services.
coffeeheaven has received an irrevocable offer by Bakery Services to sell the
Preference Shares to coffeeheaven at a price of #250,000, payable in cash (the
"Purchase"). As the Purchase will be a purchase by coffeeheaven of its own
shares, the proposed transaction will require the approval of the coffeeheaven
shareholders at the EGM. Following such approval, coffeeheaven will accept
Bakery Services' offer and the Preference Shares will be purchased by
coffeeheaven.

coffeeheaven has completed a placing of 36,000,000 new ordinary shares of 0.1p
each at 0.8p per share to raise #288,000, before expenses, for the purposes of
financing the Purchase, and the balance will provide additional working capital.
Application has been made for the new ordinary shares to be admitted to trading
on AIM and dealings are expected to commence on Friday 11 July 2003. The new
ordinary shares will rank pari passu with the existing ordinary shares in issue.

Although the Preference Shares do not carry a right to receive a dividend before
1 April 2006, the Purchase removes the burden of the Company to pay the
Preference Share dividend in the future and gives the ordinary shareholders an
increased likelihood of receiving a dividend. In addition, the purchase of the
Preference Shares at the discount to their par value of #990,000 will increase
the assets of the Company attributable to ordinary shareholders.

The Board of coffeeheaven also believes that the Purchase will allow the Company
greater flexibility in the future to strengthen its balance sheet and by
removing the uncertainty created by the existence of the Preference Shares the
Company would be more attractive to capital markets and potential investors.

The Board are also aware that proposed changes in UK accounting standards
currently under discussion may result in preference shares having to be
reclassified as debt. If these new standards were to apply to the Company's
Preference Shares then these, together with the bonds already issued by the
Company's subsidiary CHI Polska S.A. in Poland, would adversely impact the
Company's gearing ratios.

At the EGM, the Company will be seeking shareholders' approval not only to the
Purchase but also the renewal of the Directors' authority to allot new ordinary
shares, the disapplication of the statutory pre-emption rights and the
modification of the Company's Articles of Association to increase the Directors'
borrowing powers, which have now been substantially utilised as a result of the
recent bond issue in Poland by the Company's subsidiary CHI Polska S.A.

Enquiries:

Richard Worthington, Executive Chairman       Tel: 00 48 606 818 850

Jeremy Porter        Seymour Pierce Limited   Tel: 020 7107 8000

Sandra Hewett        SHMR                     Tel: 020 7689 3116








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