Brings...

1. Brings... Betting... at the speed of thought...

2. New Media, New Markets • Betting is set to move from niche market to mass market • From its current audience of 6% Ladbrokes is reaching out to the 70% of adults that play the lottery in the UK, and to the burgeoning international market

3. Off-Line Betting Market • Only 6% of British adults regularly place a bet • 11% bet occasionally • 83% never bet • Solid, static, loyal audience • Overwhelmingly male 80% to 20% • Horseracing, Greyhound racing • 68% C2DE

4. Changing Face of Betting • Social acceptance increasing - National Lottery is played regularly by 70% of the population • New technology = new opportunities • Challenge for Ladbrokes is to provide new products to appeal to a new audience

5. Growing New Media Market • Digital Growth • Exceeding expectations - some analysts predict 50%digital penetration by 2003. BSkyB, CWC ahead of predictions • 18% of Europeans likely to purchase DTV in the next year 33% 7% 42% 22.3% 2000 2003 2000 2003 “The Switch over to Digital could begin as early as 2006” Chris Smith, Culture Secretary

6. Expanding Digital Reach • Digital Market Share - End 2000 5% 8% 10.5% 14% 62% Market exceeding expectations Digital homes 10 million plus by end 2000

7. Digital Cable Growth • 2008 Digital cable 50% • Satellite / terrestrial 50%* *Source Jupiter Communications • “In the long-term, broadband cable is the future for digital television” Media analyst at Commerzbank. • Flexibility • Speed of Delivery

8. Growing New Media Market • Internet Growth 37% 20% 53% 40% Source:UK – Fletcher researchEurope – Jupiter Communications

9. Digital TV 42%+ ABC, less than 30% DE Young 35% 16-34 ‘Fashionable Youth’ ‘Sport Lovers’ Internet Average Income £36k 79% ABC Average Age: 35 The New Audience • 42% of UK adults believe betting enhances people’s enjoyment of sporting events (Mori) • In short - not your average betting shop punter Source: Fletcher Research

10. Market Lead in Enhanced TV • 1995 • 1998 • 1998 • 2000 • Hilton Group takes stake in Two Way TV • enhanced TV technology venture delivering exclusive option to offer interactive betting services • Distribution deal signed with CWC • Hilton stake reduced to 20% • CWC hold 50.1% • Two Way TV finalises joint-venture with Interactive Network Inc. a company with US patent rights to enhanced TV applications • Two Way TV concludes partnership with CWC and Telewest Ladbrokes announces exclusive option with Two Way TV to provide enhanced betting services over its technology

11. Betting at the Speed of Thought • Ladbrokes is the only bookmaker developing enhanced betting services with Two Way TV

12. Interactive TV Betting 2.6 million + Sky Digital subscribers - 5 million predicted for end 2000 Access to large base of committed sports fans Launches next season

13. Interactive betting set to launch next quarter Interactive TV Betting Ladbrokes is the only bookmaker to sign a partnership with CWC Service launches next quarter

14. Interactive Digital Betting • Other media partners • Ladbrokes is in discussions with all influential media partners across all digital media • Ladbrokes aims to extend leadership on the high street to interactive betting - via cable, satellite and terrestrial digital TV

15. Sit Back and Bet • Unique betting products tailored to the media and the audience • Football betting will be initial focus • Easy to understand - ‘betting in seconds’ • Further products in development - tailored products for different target audiences

16. New Media = New Markets • 12% of British adults would be more likely to bet if they could do so using interactive TV • This includes at least two million potential new betting customers in the UK • Source: Mori

17. Internet - • Tax-free - only UK site to pay customer’s deductions • Unique approach - team news, statistics, results and betting on one site • Football at launch, extending same approach to other sports during 2000 • Rich on-line content • Unique integrated Internet and telephone accounts

18. Bringing Betting to the Consumer • £5 million consumer marketing campaign at launch including strong presence on Yahoo!, Electronic Telegraph and Carling.net • National newspaper advertising across seven national daily newspapers, perimeter advertising at key matches • First time presence in consumer magazines - FHM, 4-4-2, MOD plus poster advertising on underground • Launches today following extensive trialling and positive feedback from existing telephone customers

19. Global On-line Opportunity • On-line revenues of $5.5 billion in Western Europe predicted by 2004 Source: Datamonitor • Global sports betting market is estimated to be worth over £520 billion Source: MMD • Key drivers: • Confidentiality and anonymity • New types of betting • Convenience • 93% of those that find Internet betting most appealing state convenience as an advantage, 55% confidentiality and 54% availability of information and ease of use Source: Mori

20. Ladbrokes.com - Betting in your language • Ladbrokes.com launches tax-free betting next week • Betting in English, Cantonese, Italian, and Spanish • Comprehensive sports coverage - horseracing, American Football, European soccer, tennis, golf and more... • Aimed at experienced betting consumers - different audience to bet.co.uk • Casino games launching Summer 2000 • Backed by extensive customer service and support

21. Safety and Security • 69% of those who would consider betting on the Internet are not confident that their card would be safe from fraud • Of those over a quarter (28%) would be more confident betting with a bookmaker whose name they know and recognise • 80% of UK adults believe new betting technologies require careful regulation

22. Building on Brand Strength • Most top of mind betting brand in the UK • Most positive brand image • Wider customer relationship through Vernons ‘non-betting’ brand • Founder-member of Independent Betting Arbitration Service (IBAS) • Supporter of Gamcare • Responsible and ubiquitous player in betting and gaming

23. Ladbrokes - Leaders in New Media • Potential for large-scale market growth via new media - New audience potential - Internet and digital TV - Unique position in interactive and enhanced TV - Well known brands, new products - Ladbrokes, Vernons - Unique tax-free Internet product - £5 million marketing campaign Ladbrokes aims to transfer UK leadership into global leadership

24. Ladbrokes International • Launched tax-free telephone service October 1999 • State of the art call centre taking bets in eight languages and seven currencies • Result of £5 million investment by Hilton Group • Telephone call centre • Average weekly revenue per customer of £146 • Compares to UK average revenue of £55

25. Global Growth • Achieved 7,000 customers from 43 countries around the world • Numbers rapidly expanding - record revenues week on week • Key markets: • Western Europe • Far East • Australasia • Internet is key media for International market

26. A Brand You Can Trust • Gibraltar - regulated environment likely to appeal to on-line gamblers above Caribbean • Ladbrokes brand established internationally • Customers in 43 countries around the world • Far East Internet site - millions of hits a month, will now link soccer fans directly to Ladbrokes.com • Global advertising campaign initially targeting the Far East

27. Real .com Revenues • Instant revenue stream • Access to new markets • Exponential growth potential with little increase in fixed costs compared to telephone betting

28. Betting In the Future • WAP • End 2000 7.1 million Europeans will have internet-enabled phones • 10-15% of all mobile phones sold this year will be internet-enabled • By 2003 market for m-commerce is predicted to be £2.05 billion in the UK • WAP trial in partnership with Ericsson beginning in weeks • UMTS • In discussions to provide services for UMTS - multimedia mobile services • Multi-channel, multi-media industry

29. Number One in Interactive TV • Exclusive option deal with Two Way TV to provide enhanced TV services • Two Way TV is the only ‘enhanced’ broadcaster to have agreements with Telewest and CWC • Interactive betting will launch to Telewest and CWC digital customers next quarter • Ladbrokes launches its Open service on Sky platform in the third quarter this year • No other major brand has announced the launch of an interactive digital service. No bookmaker has the strength and range of partnerships as Ladbrokes

30. Unique Internet Strategy • Bet.co.uk • Only UK site to offer ‘tax-free’ betting - Ladbrokes will pay deductions • Service tailored for a new audience • Ladbrokes.com - provides full, tax-free betting service for UK and International market offering multi-lingual, multi-currency betting

31. Ladbrokes - Number One in New Media • Combination of excitement, information and ‘pure e-commerce’ makes betting ideal property • As the world’s biggest betting and gaming brand Ladbrokes is a powerful partner for interactive services • Ladbrokes aims to bring the excitement of betting to a new audience across all media channels - Internet, Interactive TV, Enhanced TV, WAP mobile phones and UMTS

32. Niche market to mass market The fastest growing out of home entertainment sector in the UK UK Market - £8.7 billion by 2004(Mintel) Global Market - £520 billion (MMD) Never bet 70% Digital TV Occasionally bet Internet 11% 6% Shop Punters

33. Brings... Betting... at the speed of thought...