Statement re Write Down of Pitch Values

    Neville Porter plc

Statement re Write Down of Pitch Values 

27 December 2007

A House of Commons Culture, Media and Sport Select Committee hearing (the "Hearing") was held on 13 November 2007 to
discuss the current impasse between the racecourse and racecourse bookmakers as regards the implementation of new
commercial arrangements as to on-course bookmaking pitches from 1 September 2012.  The Gambling Act 2005 (the "Act")
abolishes the current arrangements on 1 September 2012, and requires the racing industry to put in place a new system
before that date.  As the rules currently stand, a bookmaker who is the registered holder of a racecourse pitch position
in the records of the National Joint Pitches Council has the right to act as the bookmaker at that position whenever a
race meeting is being held at the course concerned, and the only payment to the racecourse is an entry fee of five times
that paid by a member of the public. 

Although the Act requires the racecourse owners and the bookmakers to put in place a new, more commercial arrangement by
1 September 2012, it does not specify what those arrangements should be, or whether the historic pitch list system
should be retained in any future arrangements.  Negotiations have so far been difficult, with the Racecourse Association
(which represents the race course owners) insisting that no account be taken of historic pitch rights.  The Federation
of Racecourse Bookmakers (which represents racecourse bookmakers) insists that historic pitch rights must be retained. 
These opposing positions were fully disclosed at the Hearing.  Mr Gerry Sutcliffe MP, the Minister for Sport has
proposed that negotiations are continued under the auspices of an independent Chairman, but the strength of the
positions taken by both sides suggests that this matter will eventually go before the Courts.

In the light of these developments, the Board of the Company, in consultation with its Auditors and Nominated Adviser
have therefore decided that the balance sheet value of UK racecourse pitches held by the Company should be written down
over the period to 30 June 2012.  An initial write down of �552,040 against the value of the Company's UK pitches has
been made in the accounts for the period ended 30 June 2007, which are being released concurrently with this
announcement.  The remaining value of the pitched will be amortised on a straight line basis during the period to 30
June 2011.

The situation does not have a direct affect the pitches held by the Company in the Republic of Ireland, but the Board is
reviewing whether it will affect re-sale values of pitches in Ireland.


For further information, contact:

Neville Porter plc
David Soley                                      08000 223388

SVS Securities plc
Richard Morrison
Ian Callaway
Peter Manfield                                   020 7638 5600

Blomfield Corporate Finance Ltd
Nick Harriss                                     020 7512 0191

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