Director Loans

RNS Number:4728N
New Media Lottery Services PLC
06 February 2008

6 February 2008


                         NEW MEDIA LOTTERY SERVICES PLC
                           ("NMLS" or "the Company")
                                (Ticker: NMLS)

Director Loans to the Company

The Board of New Media Lottery Services PLC, the gaming content and systems
provider, announces the provision of loans and a new additional facility to the
Company by Milton and Joseph Dresner (the "Dresners"), each Non Executive
Directors and, together, effective controlling shareholders of the Company.  As
stated in the Company's latest audited report and accounts (period to 30 April
2007) the Company is dependent on the continuing support of its US listed
parent, New Media Lottery Services Inc, and the Company's ultimate shareholders
for its cash requirements for the foreseeable future.

The Dresners have directly loaned the Company a total of $1.7 million, of which
$1.2 million has been loaned since 30 April 2007 (the "Existing Loans"). The
current balance of the Existing Loans stands at $1.4 million. The difference
between the total amount loaned and the current balance is due to $0.3 million
having been repaid to the Dresners following the Company securing a $2.5 million
debt facility guaranteed by the Dresners (details of which can be found in the
audited report and accounts for the period ending 30 April 2007) for which the
Dresners have received no compensation.

Interest of 2.0% per annum above the prime rate of interest charged by Citibank,
N.A. ("Prime Rate") (which is currently 6.0% per annum) is levied against $0.8
million of the outstanding Existing Loans and 3.0% per annum above Prime Rate
against the remaining $0.6 million outstanding. The interest charged to the
Company in respect of the Existing Loans (including amounts repaid) in the six
months ended 31 October 2007 was approximately $14,000 and approximately $24,000
in the three months to 31 January 2008. Interest is calculated and accrued on a
daily basis and is payable upon repayment of the principal. The Existing Loans
are unsecured, of indefinite term and repayable on demand subject to 30 days
notice from the lender. The Company can repay the Existing Loans in full or in
part without penalty at any time.

The Dresners have agreed to make available to the Company a loan facility of
$1.0 million (the "Facility"). Interest of 3.0% per annum over the US Federal
Reserve Prime Rate (currently 6.0% per annum) will be charged against drawn down
amounts. Interest is calculated and accrued on a daily basis and is payable upon
repayment of the principal. The Facility is unsecured, has no set term but is
repayable on demand (with no notice required). The Dresners reserve the right to
discontinue this facility at any time, including prior to the draw down of the
entire $1.0 million.  The Company can repay the Facility in full or in part
without penalty at any time.

The proceeds from the Existing Loans and the Facility (together the "Debt") will
be used by the Company to fund working capital requirements. The Dresners have
also indicated a willingness to the Board to convert all or part of the Debt
into equity at an appropriate time in the future. The independent Board will
consider this at that time and further announcements will be made as required.

The Board is confident that the major shareholders will continue to support the
Company's immediate cash requirements and believe the Debt demonstrates this
support.

The Debt constitutes a Related Party Transaction under the AIM Rules for
Companies. With the exception of the Dresners, the directors consider, having
consulted with Arbuthnot Securities Limited, the Company's Nominated Adviser,
that the terms of the Debt are fair and reasonable insofar as the Company's
shareholders are concerned.

                                   ---ends---

Enquiries:

New Media Lottery Services PLC                   (001) 540 437 1688
John Carson
www.nmlsplc.com

Bishopsgate Communications Ltd                   020 7562 3350
Nick Rome
Michael Kinirons
www.bishopsgatecommunications.com

Arbuthnot Securities Limited                     020 7012 2000
Paul Vanstone
www.arbuthnotsecurities.co.uk



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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