Corporation Tax Settlement

Corporation Tax Settlement

Ladbrokes plc has reached a settlement with HM Revenue and Customs ("HMRC") which covers substantially all outstanding items in respect of tax years through to 31 December 2007. Ladbrokes expects a cash receipt in 2010 of approximately £80 million in respect of corporation tax repayable from HMRC.

The settlement results in the recognition in the 2010 Income Statement, within the tax charge, of a £262 million tax credit in relation to prior years. Of this credit, £216 million relates to current tax, and £46 million relates to the recognition of a deferred tax asset. This asset primarily reflects the recognition of tax losses available for offset in future periods.

The finance charge in 2010 will be reduced by approximately £20 million to reflect the interest consequences of the settlement.

Our guidance for the effective accounting tax rate over the medium term remains unchanged at 19%. We anticipate that the cash tax rate over the same period will fall to about 15% to reflect the utilisation of tax losses.

For further information contact:

Ladbrokes Chief Financial Officer

Brian Wallace +44 07855 335013

Ladbrokes Head of Investor Relations

Kate Postans +44 07855 335013

Ladbrokes Head of PR

Ciaran O'Brien + 44 07976 180173