07/02/2008 Ladbrokes plc acquires Eastwood bookmakers

Ladbrokes plc has acquired Eastwood Bookmakers, Northern Ireland's largest bookmaker, for a consideration of £117.5 million. The acquisition is expected to generate EBITDA of approximately £11 million in the first 12 months of Ladbrokes' ownership, with good growth forecast for the next 2 years as rebranding takes effect.

Following today's acquisition of the 54 Eastwood shops, Ladbrokes will have 70 shops throughout Northern Ireland, which include the 16 shops it acquired in 2006 from Northwest Bookmakers. Ladbrokes' market share represents 23% of the total number of betting shops in Northern Ireland, where strict application of the demand test criteria has kept betting shop numbers relatively stable for many years. Unlike the rest of the UK the demand test criteria for betting shop licences still applies in Northern Ireland.

Ladbrokes is already the largest bookmaker in the Republic of Ireland where it operates 201 shops. In total Ladbrokes now operates 271 shops throughout Ireland.

BJ Eastwood and Frances Eastwood established Eastwood Bookmakers in the 1950s and developed the business to become Northern Ireland's best-known family bookmaker. Of the acquired shops, 30 are located in and around Belfast with the remaining shops spread throughout Northern Ireland. The acquisition also includes Eastwood telephone betting business.

Commenting on the acquisition, Alan Ross, Managing Director Ladbrokes European Retail said:

'Today's acquisition of Eastwood establishes Ladbrokes as the biggest bookmaker in Northern Ireland. We bought our first shops in Northern Ireland in 2006 and our 16 shops have performed exceptionally well as customers respond to the wider product range, increased opening hours and refurbishments. We aim to repeat this success with Eastwood in the coming years.'

For further information contact:

Head of Public Relations
Ciaran
Tel: + 44 (0) 7976 180 173

Head of Investor Relations
Julian Arlett
Tel: +44 (0) 7976 348 913