Trading Statement

Rank Group PLC
12 December 2007


12 December 2007

                                 Trading update
                          49 weeks to 9 December 2007

The Rank Group Plc ('Rank' or 'the company') announces a 1% increase in
like-for-like revenue and a 2% decline in total revenue for the 49 weeks to 9
December 2007. We anticipate that group operating profit for 2007 will be
broadly in line with market expectations.

The effects of the smoking ban, recent restrictive changes to gaming regulations
and a weakening in consumer confidence have resulted in an uncertain outlook for
2008. Consequently, the Board has taken a number of actions which it considers
appropriate in view of these challenging circumstances, including the decision
not to pay a final dividend for 2007.

The trading figures announced today reflect a stabilisation in revenue from
Mecca Bingo and Grosvenor Casinos since the time of our last market update in
October 2007. Over this period we have continued to generate revenue growth from
Blue Square and from Top Rank Espana, although the rate of this growth has
slowed in recent weeks.

    Year-on-year segmental and group revenue for 49 weeks to 9 December 2007

                            Like-for-like revenue                 Total Revenue
                     (excludes club openings, closures 
                              and relocations)

Mecca Bingo                         (4)%                               (7)%
Top Rank Espana                      8%                                 8%
Grosvenor Casinos                    0%                                (4)%
Blue Square                         34%                                 34%
Group                                1%                                (2)%


As the company has stated previously, the trading performances of Mecca Bingo
and Grosvenor Casinos deteriorated from September 2007, as the loss of Section
21 gaming terminals in both businesses compounded the earlier effects of the
smoking ban and a weakening in consumer confidence. For this reason the
performances of these businesses in the discrete 14 week period between 1
September 2007 and 9 December 2007 are disclosed in this update.

Mecca Bingo

Like-for-like revenue for Mecca Bingo in the year to date was down 4% on the
comparable period in 2006, with admissions down 7% and spend per head up 3%.

In the 14 weeks from 1 September 2007, like-for-like revenue declined by 18%
with admissions down 15% and spend per head down 3%. In England and Wales,
revenue declined by 20% with admissions down 16% and spend per head down 5%. In
Scotland, revenue declined by 3% with admissions down 13% and spend per head up
11%.

This performance represents a stabilisation in revenue since the time of our
last trading update, with an improving trend in spend per head offsetting a
further weakening in admissions. Industry data and comment has continued to
support our view that our experience is shared by the wider bingo market.

We have undertaken a thorough review of trading in Mecca Bingo, to identify and
understand the key drivers of our recent performance. The scope of this review
encompasses market conditions, customer attitudes, competitor activity and the
effects of our own actions. This ongoing assessment is informing the way that we
are addressing the challenges that face the business.

In the immediate term we have progressed a number of the business improvement
actions, focused on enhancing the customer experience, that we identified at the
time of our interim results.

   •We are stepping up the rollout of electronic bingo. More than 5,000 units
    have now been deployed across 99 clubs, generating incremental revenue and
    profit and supporting the value of our prizeboards;
   •We have accelerated the development of licensed outdoor gaming areas.
    Twenty-five are now operational, generating incremental revenue and profit
    and supporting the value of our prizeboards;
   • We have gained licensing approval for outdoor gaming areas at a further
    five clubs and we will open these before the end of the year. We have
    identified up to 32 additional clubs where we may be able to develop outdoor
    gaming areas during 2008 (subject to gaining the necessary approvals and
    permissions);
   •We are improving our gaming machines product through better arcade
    design, improved machines management and product marketing and a limited
    trial of server based gaming machines;
   •We are developing bingo variant games (allowed under the Gambling Act
    2005) and expect to begin deployment of these during the first half of 2008.
   •We are testing a new range of food and drink for Mecca Bingo customers
    and plan to extend this during 2008.

During the first quarter of 2008, we will open a new Mecca Bingo club at Thanet
in Kent. We keep under review our portfolio of clubs but at present have no
plans to make any closures.

We continue to support the efforts of the Bingo Association in pressing
Government for a change in bingo taxation, to grant the industry parity with
other forms of gambling. During October, the Chancellor of the Exchequer visited
our Mecca Bingo club in Fountain Park, Edinburgh. Later in the month the Prime
Minister met with representatives from the Bingo Association. We are encouraged
by Government's new found desire to engage on this issue, but disappointed that
it has not yet led to a review of taxation policy. We will maintain our support
for the Bingo Association in this matter.

Top Rank Espana

In the year to date, like-for-like revenue for Top Rank Espana was up 8% on the
comparable period in 2006, with admissions down 2% and spend per head up 10%.

During the final quarter of the year, we have detected a gradual weakening in
consumer confidence in Spain which has led to some softening in admissions.
Grosvenor Casinos

In the year to date, like-for-like revenue for Grosvenor Casinos was broadly in
line with the comparable period in 2006, with a 2% decline in admissions and a
1% rise in spend per head.

In the 14 weeks from 1 September 2007, like-for-like revenue declined by 7% with
admissions down 5% and spend per head down 2%. While the decline in admissions
is disappointing we have seen continued growth in active membership, with strong
growth in new member sign-ups in those clubs that have received advertising
support since the end of September 2007. The effect of the smoking ban in
reducing customer dwell times is largely responsible for the decline in spend
per head. Market data suggests that this experience has been felt across the UK
casino industry.

We have progressed a number of the business improvement actions highlighted at
the time of our interim results.

   •We are developing a customer loyalty scheme and intend to introduce it to
    a number of our larger casinos during 2008;
   •We are assessing opportunities to grow active membership and admissions
    through advertising, direct marketing and promotions, as permitted under the
    Gambling Act 2005;
   •We have now introduced new member sales managers into 17 of our clubs;
   •We are improving our gaming machines by introducing product upgrades and
    through more efficient machines management.

We will continue with our strategy of making selective investments to upgrade
the quality of our casinos portfolio and we intend to open two new G Casinos, at
Thanet in Kent (a relocation of the Grosvenor Casino Ramsgate licence) during
the first half of 2008 and at Aberdeen (a new licence) in the second half of the
year.

In addition we will close the Grosvenor Casino at Liverpool at the end of this
year. This closure is principally the result of the Government's sudden and
unexpected decision to increase casino gaming duty from April 2007. We will
retain the casino licence with the intention to develop it on an alternative
site in the medium term.

Blue Square

Like-for-like revenue for Blue Square grew by 34% during the first 49 weeks of
the year. This performance was driven by the success of interactive gaming
products, notably meccabingo.com. Although there has been some slowing of growth
in recent weeks, this is measured against a strong final quarter in 2006.

Blue Square has made further progress with its strategy of pursuing growth
outside the UK. In October, we announced a non-exclusive agreement with 888
Holdings plc to offer Blue Square's sports betting products to 888 customers,
both within the UK and overseas, from 2008. Separately, we have also developed
an online bingo business for the Spanish gaming market, which we plan to launch
in the first quarter of 2008.

Capital expenditure and cost control

In the light of the current unfavourable trading and market conditions, the
Board has agreed a number of actions.

We have reviewed our capital spending plans for 2008 and decided to defer a
number of major projects. Our guidance for next year's capital expenditure has
been revised down from £50 million to £20 million, although we shall keep this
under review.

The development of a new G Casino and Mecca Bingo club at Thanet and the
development of a new G Casino in Aberdeen are not affected by this change and
will open as planned in 2008.

We maintain our focus on cost control and have introduced a series of measures
to help protect operating margin at unit level. We continue to target cost
reductions within corporate and shared services, although with £6 million of
cost savings already realised this year, the scope for further significant
benefit is limited.

Pension plan

Rank operates a defined benefit pension plan. Together with the Pension Trustee,
the company is conducting active discussions with a number of interested parties
with a view to transferring the plan's assets and liabilities to an insurer.
Rank will update the market on the outcome of these discussions at the
appropriate time.

Dividend

Given the company's current trading, the level of uncertainty facing the gaming
industry and the more general market concerns of a consumer spending slowdown as
we move into 2008, the Board has decided not to pay a final dividend for 2007.
The Board intends to resume dividend payments once trading conditions and the
market outlook have improved.

Banking covenants

Rank is currently operating within its banking covenants. Taking into account
management actions on capital expenditure, cost control and the dividend, and
assuming that trading continues broadly in line with current levels, we would
expect this position to be maintained.

Outlook

The short-term trading outlook for Rank remains challenging. However, the Board
remains confident in its long-term strategy to generate value for shareholders
by taking advantage of the anticipated growth in leisure-based gambling,
primarily in the UK. Rank intends to provide an update on this strategy and the
prospects for its businesses at the presentation of its preliminary results on
29 February 2008.


Ends


Conference call

A conference call for investors and analysts will be held at 8.30am GMT today
(12 December 2007). To access this call please follow the dial-in instructions
below.

UK (free call): 0800 6940 257
USA (free call): 1866 966 9439
International: [phone]
Conference ID: 27620474

A replay of the conference call will be available until 19 December. To access
the replay, please follow the instructions below:

UK (free call): 0800 953 1533
USA (free call): 1866 247 4222
International: [phone]
Passcode: 27620474#

Enquiries

The Rank Group Plc
Dan Waugh, director of investor relations              [phone]

M: Communications
Nick Miles/James Hill                                  [phone]



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