SOURCE: Press Release

Leisure & Gaming plc (“Leisure and Gaming” or “the Company”), the betting and gaming group, provides a trading update for the first quarter of 2008.

Trading for the three months to March 31st 2008 has been in line with management’s expectations and has continued the profitable growth experienced during the fourth quarter of 2007 with the following results:

- Net win of €6.5m (vs €8.7m for the equivalent period in 2007)

- Gross profit of €2.1m (vs €2.5m for the equivalent period in 2007)

Results were below the comparative period in 2007, which benefited from exceptional sports results and was based on a larger estate of shops.

Operational Developments

In the latter part of 2007 the Company restructured the operations of its main subsidiary Betshop Italia, including implementing a new commission structure for its franchisees, removing underperforming franchisees from the Betshop network and opening a new operations centre in Italy.

These changes have resulted in reduced operating costs and have strengthened gross profit and EBIT margins.

Betshop has therefore reduced its operating retail network to approximately 470 outlets, a platform from which it can grow profitability. Betshop now has 17 franchised shops operating under its new “corner” licences with a further 42 to open.

In the rest of Europe, the Company continues to focus on growing its operations in Greece, Cyprus and Romania.

In Greece, the Company is pleased to announce that it has signed an agreement with a local marketing partner who will exclusively promote Betshop.com in return for a share of revenues.

Corporate Activity

Leisure and Gaming has been in discussions to acquire an Italian gaming company over the last few months, but has been unable to reach a satisfactory agreement.

Whilst discussions have not been formally terminated, and the acquisition may come to fruition, the Company believes there is little prospect of this occurring in the short term.

Henry Birch, Chief Executive of Leisure & Gaming said:

"We are pleased that the positive trading from the fourth quarter of 2007 has continued and that the Company is on track to meet its expectations. Having restructured the operations of the Company, we are confident that we can deliver sustainable profitability going forward."

"Furthermore, we believe that as and when the Italian regulator allows for gaming products such as casino, poker and bingo, this profitability will substantially increase."

The Company expects to announce its preliminary results for the year ended 31 December 2007 on 14 May 2008.