Sportech PLC 01 February 2007 Trading Update Sportech PLC (the "Company"), the UK's leading football gaming business, announces its trading update for the year ended 5 January 2007. Following a period of sustained progress, the Board is pleased to announce that the financial results will be in line with market expectations. For the year ended 5 January 2007, the Company expects operating profit from continuing operations before interest, tax and exceptional items to be approximately £18.4m. Significant progress has been made in reducing the overall level of debt, and as at 5 January 2007, net debt is expected to have fallen to approximately £90 million, a decrease of 17 per cent against the comparative period (2006: £108.1m). The Board's strategic review is in its closing stages and the Company has already implemented a number of key findings. The Company is now a far more focused and cash generative business with its principal operations now profitable and growth orientated. The Football Pools business is trading in line with expectations. Annual customer attrition has slowed significantly, to an overall single digit percentage level, the smallest rate of decline since 1994. Encouragingly, the direct channel Football Pools business has seen an absolute halt in customer number decline for the first time since launch in the 1990s. Growth is being pursued through the dual strategy of enhancing and refining existing products to make them more engaging and accessible and the Board expects this will reduce attrition rates still further as well as increasing revenue. In addition, new products are being created that will be attractive to a wider audience. Enhanced distribution is a key driver for the future development of the Football Pools. It is enjoying a more prominent web presence and the Company is in discussions with a number of retail-led third parties to significantly increase distribution of this popular gaming product. Importantly, the Board believes that there are significant opportunities for international expansion and it is currently in discussions with a number of selected partners for distribution in large overseas territories. The creation of a new and enhanced brand for the football gaming business, including the Football Pools and Spot the Ball, is underway and is expected to be launched in late 2007. Online bingo has performed well, with over 5,500 active players since the business was launched in February 2006 and the online casino and poker businesses have seen the recovery which was reported in the first half of 2006 continue into the second half with increased turnover and profitability. The performance of online poker and casino reverses a period of 18 months of underperformance as a direct result of the management and business changes introduced. Following disposals and termination of a number of contracts in 2006, the Company is now concentrating on a streamlined and stronger product model incorporating the core business of football-related gaming with the online activities of casino, poker, bingo and fixed odds games. The overhaul of the Company's IT structure is on target and on budget and when completed will provide important customer-facing benefits and reduced costs. Ian Penrose, Chief Executive, said: "We are making good progress on the goals set out in our strategic review and continue to transform the Sportech business." The Company expects to announce its preliminary results for the year ended 5 January 2007 on 29 March 2007. - ends - For further information: Sportech PLC Ian Penrose, Chief Executive 0151 288 3376 Bell Pottinger Corporate & Financial David Rydell/Emma Kent 020 7861 3232 This information is provided by RNS The company news service from the London Stock Exchange