RNS Number:2631N
Bakery Services PLC
05 December 2006


Bakery Services plc (the "Company")

Settlement of Claim

The Company has previously advised of a legal claim for breach of contract filed
against it.  Following legal advice received at the time and subsequently the
Directors considered the claim to be spurious and that the Company had grounds
for a counterclaim.

However, after giving due consideration to the time and likely costs involved in
defending this action, the Directors reluctantly came to the conclusion that it
was in the Company's best interests to settle the matter out of court.
Accordingly a settlement has been agreed at a level that represents 32% of the
amount claimed. This has been accommodated within the Company's existing
financial resources.





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