Your Board

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Your Board

• Roger Withers Chairman
• Ian Penrose Group Managing Director
• Ian Hogg Director of Gaming Systems
• John Barnes Non-Executive Director
• Andrew Parker Bowles Non-Executive Director
• Graham Parr Non-Executive Director

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Group Financial Results

• Increase in turnover to 26.6m (Nine months to
  end 2000 15.7m)
• Second half operating profit of 593,000
• Loss after tax of 6.2m (Nine months to end 2000
  loss of 6.2m)
• Net cash on 31 December 2001 of 27.6m

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Review Of The Year
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A Year Of Fundamental Change

• Your Company has been transformed
• Racecourse Operator
• Media Rights Owner
• Technology Provider

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Racecourses

• New management structure started to deliver
  results
• Operating profit for year ended 31 Dec 2001 of
  2.06m, up from 1.66m for 9 months to 31 Dec
  2000
• 4,000 per race deal concluded for Betting Shop
  picture rights set to generate additional 4m per
  annum
• Two new advertising deals announced
• 1m, three season sponsorship by Littlewoods Bet
  Direct
• 90,000 per year, up to three year Royal Windsor
  Festival sponsorship by Gala Group

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Racecourses

• 3m new Polytrack surface at Lingfield Park
  opened to great acclaim last November
• Fosters International Trial Stakes on April 6
  2002, attracted probably the best ever field on
  an all-weather surface to date
• Positive outlook
• Office of Fair Trading announcement expected in
  August
• 41st Levy agreement likely to benefit Arena
• Exciting opportunities for casino, gaming halls
  and hotel developments

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attheraces

• Successful start to attheraces - performing
  in-line with our expectations
• attheraces.co.uk website launched, 12 December
  2001
• 32,000 registrations on our website to date
• 143,000 bets placed so far
• attheraces TV channel launched on Sky, 01 May
  2002
• 1.2m viewers in first 4 weeks on air
• 237,351 peak viewers, 06 May 2002
• Telephone betting now live, 0800 083 83 83

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attheraces

• Series of wholesale media rights transactions
  concluded, netting attheraces minimum 18m per
  annum
• 80 of the 22m rights payment due to the racing
  industry for 2002/3 now covered
• Further rights deals pending with radio
  broadcasters and premium rate (telephone service)
  operators
• Pioneering Interactive betting due on channel
  next month
• International content next, starting with USA

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Capturing The Market Video
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Arena Online

• Turnover in 2001 of 3.65m
• Secured service contract to supply technical
  services to attheraces for Internet, iDTV, Mobile
  and all future platforms
• Developed technology at the heart of
  attheraces.co.uk and the attheraces digital
  television channel on Sky
• Moved from loss-making to being profitable in
  second half of 2001
• All development costs now written off

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Arena Online

• Progressed Trackplay joint venture with
  Scientific Games Corporation of USA
• Completion of technology provision agreements
• Fgnetbet.com Launched in US Jul 2000
• attheraces.co.uk Launched in UK Dec 2001
• Xpressbet.com Launched in US Jan 2002
• Fintoto Launches Summer 2002
• Going forward Other opportunities expected

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Arenas Key Dates

• Summer launch of interactive betting on
  attheraces Sky channel 418
• 04 September Interim Results
• November start of second all-weather
  Championships, sponsored by Littlewoods Bet
  Direct
• By end of 2002 launch of international racing
  content on attheraces Sky channel

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Outlook

• Increasingly favourable landscape for Arena
  Leisure
• Racing Division likely to benefit from 41st Levy
  and governmental reform of gambling major plans
  for racecourses
• attheraces on track - will be boosted by
  interactive betting on Sky
• Continuing success in reselling of media rights
  international expansion planned
• Arena Online and Trackplay to supply technology
  to further gaming corporations internationally

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Shareholder Resolutions
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Questions?
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