Leisure & Gaming Plc Acquires Stanley Entertainment NV and E-Gaming Partnership with Stanley Leisure plc for £2m

Monday, October 17th, 2005

Acquisition

Leisure & Gaming Plc, the AIM-listed interactive betting and gaming company, is pleased to announce that it has today acquired Stanley Entertainment NV (“Stanley Entertainment”), the online casino business of Stanley Leisure plc (“Stanley Leisure”), for £1.86 million payable in cash and a potential deferred consideration of up to £280,000.

The acquisition provides a further UK and European revenue stream and customer base to Leisure & Gaming’s international business and complements the VIP Group business, which Leisure & Gaming acquired in June 2005 for an initial consideration of £18.7 million.

Leisure & Gaming has been advised by Marwyn Capital and Livingstone Guarantee.

E-Gaming Partnership

Leisure & Gaming and Stanley Leisure have also agreed a strategic partnership which will see Leisure & Gaming becoming Stanley Leisure’s chosen partner for developing their brands and assets online, leveraging Leisure & Gaming’s operational and product infrastructure. The two companies have signed an affiliate agreement for an initial term of 12 months in which Stanley Leisure will drive its customers to certain Leisure & Gaming sites including the Acropolis Casinos business. The partnership will also include a poker offering and a dedicated slots offering.

Under the agreement, Leisure & Gaming will generate value from Stanley Leisure’s database of more than 1 million registered members and will have promotional access to Stanley Leisure’s estate of 41 casinos across the UK. As part of the affiliate agreement, Leisure & Gaming has committed £140,000 as a pre-payment against future affiliate revenues to Stanley Leisure.

Alistair Assheton, Chief Executive of Leisure & Gaming said:

“We are very pleased to announce these ventures with Stanley Leisure, which include the acquisition of their online casino business, and a wider partnership in online gaming - we are confident these will deliver great value to both parties moving forwards.

“Although the acquisition is relatively small in size, by using free cashflow to make earnings enhancing acquisitions we are increasing shareholder value, and we will continue to complete such deals as and when they become available.

“Additionally, by partnering with Stanley Leisure, we are benefiting from working with an organisation with blue chip gaming expertise, premier gaming brands and a strong land-based presence in the UK with over one million registered customers.”

For further information call:

Alistair Assheton
Chief Executive
Leisure & Gaming plc
Tel: 020 7248 6343