Disposal of Bet Direct

Sportech PLC
02 June 2006


2 June 2006


        Sportech PLC ('Sportech' or 'the Group') - Disposal of Bet Direct
              
                          
Highlights

-    Sportech disposes of Bet Direct to 32Red plc for £12.5 million in
     cash

-    Disposal follows strategic review of options by the Board to
     restructure and reposition the Group

-    Proceeds of sale to be used to reduce bank debt

-    Group now focused on core, profitable business streams


Sportech announces that it has today agreed to dispose of Bet Direct for a total
consideration of £12.5 million in cash (the 'Disposal') to 32Red plc ('32Red').
The consideration of £12.5 million will be settled by a cash payment of
approximately £11 million and the assumption of  the liability in respect of
customer balances, which  on the date of completion, is expected to be
approximately £1.5 million. The profit before tax on the disposal is expected to
exceed £10.5 million.  The sale proceeds will be used to reduce higher cost
mezzanine bank debt, thereby lowering the overall borrowing costs payable by
Sportech going forward.

Bet Direct offers sports betting, fixed-odds games, casino and poker products
via the direct channels of telephone, internet and television.  For the year
ended 31 December 2005, Bet Direct made an operating loss of £4.8 million.  As
at 31 December 2005 Bet Direct had net liabilities of £1.7 million which
comprised £2.2 million of gross assets and £3.9 million of current liabilities
(including £1.6 million of customer balances).

The disposal of Bet Direct will involve the sale of the whole of the issued
share capitals of Bet Direct NV and Bet Direct Limited together with certain
fixed assets, book debts and  business intellectual property relating to the Bet
Direct business owned by other subsidiaries of  Sportech. The Disposal is
conditional, inter alia, on the admission to trading on AIM of new ordinary
shares in the share capital of 32Red ('Admission') which are being placed with
institutional investors to raise £6 million ('the Placing'). The Placing is
underwritten and Admission is expected on 7 June 2006.

On 30 March 2006, Sportech announced that the Board was strategically reviewing
its options in respect of Bet Direct. This followed the Board's decision in
January 2006 to withdraw from its interactive sports betting service with ITV,
which had incurred operating losses of £4.1 million in 2005 and exposed the
Group to further losses of up to £30 million over the remaining life of the
contract.

The elimination of the ITV contract and the sale of Bet Direct, two loss making
activities which together incurred an operating loss of £8.9 million in 2005,
enhanced further by the reduction in debt following the sale, will conclude the
initial strategic objectives to restructure and reposition Sportech, providing a
firm foundation for future growth.

The Group now intends to focus on the strengths and qualities of its football
gaming business, Littlewoods casino, poker, bingo and associated brands and
games. By diversifying both its product range and its methods of distribution,
the Group intends to attract a wider customer base and make its games more
accessible and easier to play in order to re-establish its position in the
market.

Ian Penrose, Chief Executive of Sportech said:

'The sale of Bet Direct is another milestone in the strategic review of the
Group and its future development. Proceeds will allow the Company to reduce
debt, strengthen the Group's balance sheet and focus on its core profitable
businesses.

'Since the start of 2006, Sportech has terminated the Group's loss making
contract with ITV, launched Goal Rush, an exciting new product in the Football
Pools portfolio, secured new distribution channels and, now, disposed of Bet
Direct. These measures position the Group to take advantage of future
opportunities.'


Enquiries:

Sportech PLC
Ian Penrose, Chief Executive Officer 0151 288 3561

Investec Investment Banking
James Grace / Stefan Borson 020 7597 5970

Bell Pottinger Corporate & Financial
David Rydell / Zoe Sanders 020 7861 3887



Notes to Editors

Sportech PLC

Drawing on over 80 years of experience, Sportech PLC, through its various
businesses, including Littlewoods Football Pools, has developed a wide-ranging
gaming product portfolio which includes football pools and football games,
on-line casino, poker and entertainment games including bingo. Sportech has over
600,000 customers, 500,000 of whom play the football pools on a weekly basis,
making the football pools business the second most popular weekly gaming
activity in the UK.

Sportech is continually developing access to its gaming products through a
network of channels to include the internet, mobile phones, telephone, post and
a UK network of collectors who visit customers at their homes.

Sportech PLC is listed on the London Stock Exchange (SPO). For more information,
visit www.sportech-plc.co.uk






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