SIS CONFIRMS THE COST SAVINGS UNDERLYING THE PRICE REDUCTION FOR BETTING SHOPS

25 February 2008 - Satellite Information Services (SIS) has conducted a detailed review of its direct costs of broadcasting racing to UK betting shops, since it ceased broadcasting from the Turf TV racecourses, and can confirm that the proposed price reduction of £1703 per shop reflects the cost savings which will be achieved.

This review follows the changes to the broadcasting of racing from UK courses into betting shops at the end of last year. SIS had previously broadcast from all 59 UK courses until the arrival of Turf TV in 2007, who signed the rights to 31 of these courses.

SIS wanted to examine the costs of its service - since the coverage from the 31 courses ceased at the end of December 2007 - and to address comments being raised about the price reduction.

This report has been prepared by SIS solely in connection with their assessment of the direct cost savings following the end of broadcasting from 31 racecourses in the UK. To ensure that the details of the cost savings are transparent and available to all, a copy of the SIS Management Report is on the SIS website at http://www.sis.tv/downloads/documents/pdfs/SISPressRelease1.pdf.

The Management Report includes the key components for calculating the cost-saving per shop, eg rights payments, cost of third party outside broadcast units, relevant SISLink costs, amounting to a total of £17.7 million, for the 10,404 shops receiving the service, making a saving for each shop of £1703 per year.

KPMG has provided assurance in relation to the value of these cost savings. The full text of their report can be found on the SIS website at: http://www.sis.tv/downloads/documents/pdfs/SISPressRelease2.pdf.

SIS Chief Executive David Holdgate commented: “ I hope that the analysis we have set out in our Management Report will confirm, once and for all, that we have offered all 10,404 betting shops in the UK a valid reduction since the broadcast coverage from 31 racecourses was denied to us. These courses will be covered by a new service provider which, we understand, will be charging each shop around £6500 for their service. SIS will continue to broadcast from other UK courses, as well as providing coverage of greyhounds, overseas racing, numbers events and a full data service.”

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For further information please contact:
Nick Wood-Dow of Chelgate on 07713 681322
or David Holdgate on 07803 019066 or
Jim Campbell on 07921 895195