Ladbrokes and Canal+ Launch Joint Venture

8 April 2010

Ladbrokes plc and Groupe CANAL+ Launch Joint Venture

Targeting French Market

Ladbrokes plc, one of the world's leading betting and gaming companies, has today announced that it has signed a conditional1 Joint Venture ("the JV") agreement with Groupe CANAL+ to target the French market through the launch of an online betting and gaming service which will be licensed and regulated in France2.

The move marks Ladbrokes first move into the French market which is currently dominated by retail products such as PMU horserace pool betting and lottery products offered by Française des Jeux.

The new JV will launch under a new brand name reflecting the product and the association with Groupe CANAL+, the leading premium pay TV provider in France and operator of the Canal+ Channels, including CANAL+ and CANAL+ Sport. It is planned that the JV will launch the new service during the course of 2010, subject to the new regulations which were approved by the French legislature on April 6.

Under the terms of the JV it is intended that Ladbrokes will provide its betting and gaming expertise and technology to the joint venture company. Groupe CANAL+ will provide access to media, brand, potential consumers and its experience of operating in the French market.

The 50:50 JV is between Ladbrokes plc and Groupe CANAL+ with each partner agreeing to provide €2.25 million as initial funding to "JVCo", the simplified joint stock company created under French law which will operate the JV.

Ladbrokes' Managing Director of Remote Betting and Gaming John O'Reilly said: "Canal+ is a brand that is synonymous with sport in France. We believe that there is an opportunity to build a good business in France over time as the market and regulation develop."

Groupe CANAL+ President Bertrand Meheut said: "Ladbrokes is one of the world's leading bookmakers with a strong heritage in this sector. We look forward to working with Ladbrokes to establish one of the leading betting businesses in France."

The JV is not for a fixed period. Groupe CANAL+ will be granted a put option (the "Put Option") exercisable (upon notice) for a period of 7 years after the end of the fifth year of the date upon which JVCo starts trading, which would require Ladbrokes to purchase Groupe CANAL+'s 50% stake at a price set at the time of exercise by reference to JVCo's then fair market value. Ladbrokes intends to finance this out of cash or borrowings available at the time. In the event of there being an unresolved deadlock on a key decision either party may be required to buy the other party's shares or sell its own shares in JVCo. Ladbrokes has agreed that, whilst it is a shareholder in the JV and for a period of two years thereafter, it will not operate in France any other business as an operator of online games or betting.

Ladbrokes interests in the JV will be managed by John O'Reilly, Managing Director of Remote Betting and Gaming. It is proposed that following a detailed assessment of the personnel requirements, the JV will recruit a dedicated team of employees, whilst continuing to draw on the expertise of Ladbrokes and Groupe CANAL+.   

Notes

1 The JV launch is conditional upon certain competition law clearances.

2 Online regulation refers to France and also its relevant overseas departments and territories.

About Groupe CANAL +

CANAL+ Group is the leading premium and theme channel broadcaster in France and leading distributor of pay television offers with revenues of €4.5 billion and 12.5 million subscriptions, including 10.8 million in France. The CANAL+ Channels are CANAL+ Group's flagship offer with premium, exclusive content including movies, drama, entertainment and sports. Each year, the Canal+ Channels air over 550 movies and 5,000 hours of live sports, including Europe's most popular football championships, top European and world rugby, and most major golf events and tennis tournaments. A pioneer in digital TV in Europe, CANAL+ Group leads the way in enhancing TV viewers' experience and developing new services and TV consuming habits, on-demand or on-the-go. In addition to pay-TV activities, CANAL+ Group is a major European player in motion picture production, acquisition and distribution and is also involved in organising and marketing sport events.

About Ladbrokes

Formed in 1886, Ladbrokes plc is a world leader in the betting and gaming market. In 2009 it took £15 billion in stakes with group revenues of over £1 billion. Benefiting from its brand strength the company offers an all-embracing range of betting and gaming services supported by 15,000 employees and state of the art technology. Ladbrokes delivers its services via three key distribution channels - retail, online and telephone. It has a market-leading retail presence in the UK, Ireland, Belgium and the Madrid region of Spain with over 2,700 retail outlets. Ladbrokes.com offers a comprehensive range of betting and gaming opportunities in 18 languages and 18 currencies and its high quality telephone betting service handles over 5 million calls a year. www.ladbrokesplc.com

For more information, please contact:

Groupe CANAL +

Laurence Gallot, Directrice de la Communication + 33 1 71 35 02 22

Ladbrokes Head of PR

Ciaran O'Brien + 44 07976 180173

Ladbrokes Head of Investor Relations

Kate Postans +44 (0) 20 8 515 5730