Re Joint Venture

365 Corporation PLC 26 November 2001 Monday 26th November 2001 365 and Chrysalis to create sports internet joint venture 365 Corporation plc ('365') and Chrysalis Group plc ('Chrysalis') announce that they have signed a heads of agreement to transfer their respective internet content businesses and related assets to a new Company ('Newco'). The new entity brings together two of the three biggest players in the European digital sports market to create the number one company in this field. Following completion of the transaction expected by 31 December 2001, 365 and Chrysalis will both retain significant but non-controlling minority interests in Newco. Operating funds of £2.0m will be jointly provided to Newco by 365 (£0.7m) and Chrysalis (£1.3m) and is considered sufficient to support Newco's operations for the next eighteen months. In addition, 365 and Chrysalis will each make available a further £0.25m to Newco for future acquisitions. Neither 365 nor Chrysalis will have further funding obligations to Newco beyond these investments. It is intended that the shareholdings in Newco will be as follows: 365 40%, Chrysalis 40% and Newco Management 20%. 365 and Chrysalis will each appoint two non-executive directors to the Board of Newco but neither party will have any operational involvement going forward. Richard Pembroke, currently Managing Director of 365's internet division, will become Managing Director of Newco, and Marcus Leaver, presently CEO of Rivals, non-executive Chairman. Newco will combine 365's digital sports content and market-leading products including Football365, Planet Rugby, Cricket365 and Planet-F1 with Rivals, Chrysalis' internet content business, which operates Europe's largest network of independent fan-driven sports web sites. 365's websites currently attract over two million users a month and the Rivals network has over one million users each month and 47.8 million page impressions per month and has been in existence for just over a year. It is the stickiest sports site in Europe with users spending an average of 37mins 41 seconds on the site. The merged business will provide its 3 million plus users with access to its broad, fan-based sports network, which will be supporting and complementing 365's flagship titles in the major sports arenas. Senior management of Newco is confident that this is a package which offers users an unparalleled service, and commercial partners a unique and exciting environment. Commenting on this announcement, Martin Turner, CEO of 365 said: 'The Board of 365 believes that the formation of Newco with Chrysalis represents the best opportunity to create Europe's leading sports internet business, and future value can be created in the entrepreneurial and focused environment of Newco. Following completion of this transaction, we will continue to focus our efforts on developing our telecommunication assets and technology, particularly in the fast-growth area of Voice Services where 365's Eckohtec division is a leading player in the European market.' Richard Huntingford, Group CEO of Chrysalis, said: 'The Board of Chrysalis said in its recent Period End Update that it would concentrate its remaining 'ring-fenced' New Media fund' solely on Rivals and that we would look to further develop this business. This deal demonstrably achieves both aims. Chrysalis' funding commitment for Newco is contained within the 'ring-fenced' funds and the combined business will be the market leader in the digital sports arena with strong backing.' - ends - Enquiries: 365 Corporation plc Tel: 01442 458 355 Martin Turner, Chief Executive Officer Nik Philpot, Chief Operating Officer Chrysalis Group plc Tel: 020 7221 2213 Richard Huntingford, Group CEO Lisa Gordon, Director of Corporate Affairs Financial Dynamics Tel: 020 7831 3113 Fiona Meiklejohn/Ben Atwell SUPPLEMENTARY FINANCIAL INFORMATION 365 Corporation plc For the twelve months ending 31 March 2001, 365's internet business reported turnover of £5.2m, and operating losses before goodwill amortisation and impairment of £7.2m. Goodwill amortisation and impairment relating to this business amounted to £24.4m for the year. This excludes the results of 365's USA operation, which is not part of this transaction and will be sold or closed within the next 90 days, nor the operation in Paris which was sold to Onlysport France SA on 31 March 2001. As at 31 March 2001, the internet business (excluding the USA and French internet operations) had net assets totaling £1.5m. For the twelve months to 31 March 2001, 365's USA internet operation reported turnover of £0.3 m, and operating losses of £0.4m.

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