SUR.L Regulatory News (SUR)

4 April 2016

Lakehouse Plc

Response to Requisitionists

Lakehouse Board continues to unanimously recommend that all Lakehouse Shareholders vote against the Resolutions proposed by the Requisitionists.

Further to the announcement made by Lakehouse plc on 1 April 2016, the Company has today published a letter to its shareholders containing the statement from Slater Investments Limited and Steve Rawlings, which the Company is required to send to shareholders, together with a response to the statement from the Board.

The Resolutions will be proposed and voted upon at the Company's forthcoming General Meeting on 19 April 2016.

The Board continues to unanimously recommend that Lakehouse Shareholders vote against the Resolutions proposed by the Requisitionists.

In summary, the Board's response and key concerns include:

1. The Requisitionists have again failed to set out any alternative strategic vision and/or business plan;

2. The Board confirmed publicly on 24 March 2016 that the Company remains on track to deliver on its revised expectations for the current financial year;

3. The Board and executive management team at Lakehouse, all of the latter being Lakehouse Shareholders, have already taken action in response to the trading issues of the Group reported in February 2016;

4. The Requisitionists' actions have already caused, and continue to cause, considerable uncertainty amongst, and have a destabilising effect on, the executive management team and other Group employees, customers, suppliers and other partners and stakeholders.

5. The Board has already committed to appoint a fourth Non-Executive Director;

6. The Board still has concerns and questions as to the ability of the Alternative Non-Executive Directors to add immediate value to the Group;

7. The proposed changes to the composition of the board would significantly reduce the level of independence on your Board; and

8. The Requisitionists now acknowledge that their proposed Board composition would not comply with the UK Corporate Governance Code.

Chris Geoghegan, Non-Executive Chairman of Lakehouse, commented:

"The Board of Lakehouse has a clear and established strategy to grow the business that has been consistently articulated. The ultimate goal of this strategy is to create a sustainable business that delivers profitable growth, whilst being robust throughout the changing economic cycle. In stark contrast Slater Investments Limited and Steve Rawlings have given absolutely no indication of what their alternative strategy would be. As your Board, we believe their proposals expose Lakehouse Shareholders and employees to unknown strategic changes being delivered by individuals that only represent the narrow interests of one shareholding group.

We have grave concerns that this would cause even further disruption to the Lakehouse business to the detriment of all stakeholders.

Therefore we firmly recommend that Lakehouse Shareholders vote against the Resolutions."

- Ends -

For more information please contact:

All terms used within this announcement will have the same meaning as applied within the circular sent to Shareholders on 24 March 2016 (the "Circular"). The letter will be posted to Lakehouse Shareholders today and will shortly be available for inspection on the Company's website at www.lakehouse.co.uk.