Brings...

Betting...

at the speed

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New Media, New Markets 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

Off-Line Betting Market 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

Changing Face of Betting 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

0

10

20

30

40

50

Mil

lio

ns

UK Digital W.Europe Digital

Growing New Media Market 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

7%

33%

22.3% 42%

2000200

32000 2003

“The Switch over to Digital could begin as early as 2006”

Chris Smith, Culture Secretary

Expanding Digital Reach Expanding Digital Reach

Digital Market Share - End 2000

SkyOnDigitalTelewestCWC CableNTL

8%

62%

14%

10.5%

5%

Market exceeding expectations Digital homes 10 million plus by end 2000

Digital Cable Growth 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

Growing New Media Market Growing New Media Market

Internet Growth

0

10

20

30

40

50

60

(mil

lio

ns)

2000 2003 2000 2003UK Users European Households

Source: UK – Fletcher research

Europe – Jupiter Communications

40% 53%20%

37%

42% of UK adults believe betting enhances people’s enjoyment of sporting events (Mori)

In short - not your average betting shop punter

The New Audience The New Audience

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

Source: Fletcher Research

Market Lead in Enhanced TV Market Lead in Enhanced TV

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

1995

1998

1998

2000

Ladbrokes announces exclusive option with Two Way TV toprovide enhanced betting services over its technology

Betting at the Speed of ThoughtBetting at the Speed of Thought

Ladbrokes is the only bookmaker developing enhanced betting services with Two Way TV

Interactive TV Betting 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

Interactive TV Betting Interactive TV Betting

Ladbrokes is the only bookmaker to sign a partnership with CWC

Service launches next quarter

Interactive betting set to launch next quarter

Interactive Digital Betting 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

Sit Back and Bet 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

New Media = New Markets 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

Internet -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

Bringing Betting to the Consumer 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

Global On-line Opportunity Global On-line Opportunity

On-line revenues of $5.5 billion in Western Europe predicted by 2004Source: 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

Ladbrokes.com - Betting in your languageLadbrokes.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

Safety and Security 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

Building on Brand Strength 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

Ladbrokes - Leaders in New Media 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

Ladbrokes International 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

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

Global Growth Global Growth

A Brand You Can Trust 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

Real .com Revenues Real .com Revenues

Instant revenue stream

Access to new markets

Exponential growth potential with little increase in fixed costs compared to telephone betting

Betting In the Future 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

Number One in Interactive TV 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

Unique Internet Strategy 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

Ladbrokes - Number One in New Media 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

Niche market to mass market Niche market to mass market

Occasionally bet

Never bet

70%

The fastest growing out of home entertainment sector in the UK UK Market - £8.7 billion by 2004 (Mintel)

Global Market - £520 billion (MMD)

6%Shop

Internet

Digital TV

11%

Punters

Brings...

Betting...

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