Update on EGM

Blacks Leisure Group plc ("Blacks" or "the Company")

Take up under the Open Offer

Update on discussions with Sports Direct

Intention to seek adjournment of the General Meeting

Take up under the Open Offer

On 5 February 2010, the Board of Blacks announced details of a share issue to raise gross proceeds of £22.0 million (approximately £20.3 million net of expenses) by the issue of 40,740,742 new ordinary shares through a firm placing (the "Firm Placing") and a placing and open offer (the "Placing and Open Offer") at 54 pence per new ordinary share. 20,370,371 new ordinary shares would be issued through the Firm Placing and 20,370,371 new ordinary shares would be issued through the Placing and Open Offer.  

The commitments of placees in respect of new ordinary shares to be issued pursuant to the Open Offer are subject to clawback to satisfy valid applications under the Open Offer. The new ordinary shares subject to the Firm Placing are not subject to clawback and are not part of the Open Offer. 

The Open Offer closed for acceptances at 11.00 a.m. on 22 February 2010. The Company has received valid acceptances in respect of 12,004,899 new ordinary shares under the Open Offer. This represents approximately 58.9 per cent. of the new ordinary shares offered. The remaining 8,365,472 new ordinary shares, representing 41.1 per cent. of the new ordinary shares subject to the Open Offer, will be allocated to the placees. Applications under the excess application facility offered under the Open Offer will be accepted in full.

The Firm Placing and Placing and Open Offer remain conditional, amongst other things, upon the approval of Shareholders at a General Meeting.

Discussions with Sports Direct

On Monday, Sports Direct International plc ("Sports Direct") announced that Sportsdirect.com Retail Limited ("SWI"), a wholly-owned indirect subsidiary of Sports Direct had acquired such right, title and interest that Kaupthing Singer & Friedlander Limited (in administration) had in Blacks. As a result, SWI now holds, without dispute, 12,153,071 ordinary shares in Blacks. These ordinary shares represent 28.5% of the current issued share capital of Blacks. The announcement by Sports Direct indicated that SWI intended to vote against the resolution proposed by Blacks to approve the Firm Placing and Placing and Open Offer. If this were to occur, the shareholder resolution would not be passed and the proposed fundraising would not proceed in its current form.

The Company is currently engaged in discussions with Sports Direct in relation to the Firm Placing and Placing and Open Offer. There can be no guarantee that these discussions will reach a successful conclusion.

Intention to seek an adjournment of the General Meeting

In order to give the Company more time to conclude its discussions with Sports Direct, the chairman of the General Meeting which has been convened for 11.00am today, intends to seek approval of the shareholders attending the meeting, to adjourn the meeting for an indefinite period. Once the discussions with Sports Direct have concluded, it is intended that not less than 7 clear days' notice of the date fixed for the adjourned meeting will be given to all shareholders. The Company has been informed by Sports Direct that it intends to vote in favour of a motion to adjourn the General Meeting

A further announcement will be made after the General Meeting has concluded..

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