SOURCE: Press Release

Sportingbet Plc, a leading online sports betting and gaming group, announces its results for the three months ended 31 October 2007, the first quarter of its financial year to 31 July 2008.

In order to aid comparison, the financial and operational information for the prior period is stated excluding the US business that was sold/closed in October 2006 resulting in Sportingbet’s complete exit from that market.

This is the first period under which Sportingbet has adopted International Financial Reporting Standards (“IFRS”) as the basis to report its financial results, as opposed to UK GAAP.

Any differences arising between the results reported under IFRS and UK GAAP merely reflect the changes in accounting basis and are not a reflection of a change in business performance.

As a result of the implementation of IFRS, terminology used in the presentation of the financial results has changed. Precise definitions of the new terms used are included in Note 1 on Accounting Policies. A reconciliation between the results under IFRS and UK GAAP is set out in Note 8.

Financial Highlights – Three months ended 31 October 2007
• Group operating profit* up 110% to £4.2m (2006 restated: £2.0m)
• Operating profit* 13.8% of net gaming revenue (2006: 6.2%)
• Cash on the balance sheet, net of customer liabilities, of £25.6m (2006: £52.0m)
• Statutory Group loss of £1.7m (2006: loss of £240.9m)
• Pre-exceptional profit before tax of £1.5m (2006: £1.1m)
• Diluted earnings per share* of 0.8p (2006: 0.3p)
(* stated before charging exceptional items, fair value restatements and amortisation)

Business Highlights – Three months ended 31 October 2007
• Continued strong growth in European sports betting – gaming revenue up 27%
• Benefits of cost restructuring coming through in enhanced operating margins
• Operational reorganisation post UIGEA now substantially complete
• Australian betting volumes up despite Equine Influenza
• Channel Islands office now fully operational and performing well

Commenting on the results, Andrew McIver, Chief Executive, said:

“I am delighted with the Group’s strong performance in the first quarter, which has given us a very solid start to the financial year."

"With much of the restructuring now behind us, our focus can now be on better recruitment and retention of customers, on being a first class retailer of gaming services and on offering a true internet based experience."

"The second quarter has started well, with good margins and volumes across the Group. With the platform for growth in place, the Board looks to the future with confidence."