Proposed Merger Update

Ladbrokes plc

19 November 2015

PROPOSED MERGER UPDATE

The Board of Ladbrokes ("Board") notes the publication of a letter sent by Mr Dermot Desmond on the evening of the 17 November 2015 on Ladbrokes proposed merger with the Coral Group.

The Board further notes it has had significant dealings with Mr Desmond as both a shareholder and a commercial partner over recent times including the Ladbrokes acquisition of Betdaq and Chronicle Bookmakers.

In the Circular dated 30 October 2015, the Board set out the compelling strategic rationale and benefits of the proposed merger with the Coral Group. These included:

· The potential to deliver faster online growth

· The creation of the UK's largest LBO estate

· The creation of an extensive international portfolio of regulated businesses

· The delivery of significant cost synergies underpinning shareholder returns

· The ability to operate across an enhanced and integrated technology platform

The Directors reiterate their recommendation to shareholders to vote in favour of the Resolutions to be proposed at the General Meeting to be held on 24 November 2015. 

As was set out in the Circular, Resolutions 3 and 4 being proposed at the General Meeting require the approval of independent Ladbrokes Shareholders. Ladbrokes wishes to clarify that Playtech is not considered to be an independent Ladbrokes Shareholder and so any votes cast by Playtech will not be counted in respect of these two resolutions.

The Board remains confident that shareholders will see the attraction of the proposed merger and continues to work towards a successful conclusion to the proposed transaction.

Contact:

Investors

Richard Snow Director Investor Relations 07767 677 429

Media

Donal McCabe Director of External Relations 07795 968 482

Note, capitalised terms unless otherwise defined above, have the meaning ascribed to them in the Circular dated 30 October 2015.