SOURCE: Press Release

Financial highlights

* Revenue from continuing operations of £534.4m (2006: £549.6m) * Group operating profit before exceptional items from continuing
operations of £68.3m (2006: £73.2m); £23.1m (2006: £126.9m) after exceptional items
* Adjusted profit before tax* of £46.2m (2006: £40.2m); profit before tax and exceptional items from continuing operations of £52.3m (2006: £53.9m)
* Adjusted earnings per share** of 7.4p (2006: 4.6p)
* Basic earnings per share from continuing operations before exceptional items of 7.3p (2006: 8.4p)
* Board decision not to pay a final dividend - dividend per share for 2007 of 2.0p (2006: 6.0p)
* Net debt of £316.9m (£447.2m at 31 December 2006)

Review of key events

* $965m (£502m) Hard Rock disposal completed in March 2007
* £353m returned to shareholders in April 2007 by way of a 65.0p per share special dividend
* Group's progress impacted by negative effects on UK retail businesses of smoking ban, changes to gaming regulations, increases in taxation and deterioration in consumer confidence
* Significant cost reduction in 2007; further £15m of cost savings identified for 2008
* Agreement to transfer assets and liabilities of Group's defined benefit pension plan
* Capital spending programme for 2008 reviewed in light of difficult trading conditions

Ian Burke, chief executive of Rank Group said: "After making a strong start to our first year as a focused gaming business, we experienced a significant deterioration in trading conditions in the second half for our UK retail businesses, Mecca Bingo and Grosvenor Casinos.

"The combination of regulatory changes, structural increases in gaming duty and the ban on smoking in enclosed public places had a negative effect on the Group at a time of weakening consumer confidence.

We have responded with vigour to these challenges, adapting our businesses to protect revenue, addressing our cost base to preserve margin and reviewing our capital spending plans.

Nevertheless we expect 2008 to be a challenging year for Rank.

"Our priority is to overcome the near term issues facing our businesses while retaining a long term focus on the opportunities to create value through the growth in mainstream gaming based leisure."

* Adjusted profit before tax is calculated by adjusting profit before tax from continuing operations to exclude exceptional items, unwinding of discount in disposal provisions, other financial gains/(losses), amortisation of the equity component of the convertible bond and net return on defined benefit pension asset.

** a reconciliation of adjusted earnings per share is included in note 6.