LNG Leisure&Gaming

RNS Number:9850G
Leisure & Gaming plc
05 November 2007


5th November 2007

                             Leisure & Gaming plc

                       Operations and Strategy Update


On the 12th October 2007, Leisure & Gaming plc ("the Company") announced that it
had terminated takeover discussions with CGTV Games Limited but had been
approached by other parties and was considering these alternative proposals.
The Company remains in these discussions but takes this opportunity to give an
update on its strategic focus and operations.


The Company is focused on 5 key strategic initiatives:


1)         Risk Management


The Company has conducted a review of its risk management policy and procedures,
including hedging policy, and plans to strengthen its risk management team.


2)         Restructuring of Partner/Franchisee Commissions


In the course of September and October, the Company has restructured its
partners' commissions to reduce volatility of earnings.  The Company expects an
associated positive impact from October 2007 onwards.


3)         Product Diversification


With the expected introduction of secondary regulation in Italy in 2008, the
Company will be able to offer new products like skill games, poker, bingo and
casino games through the licences it was awarded in 2007.


4)         Channel Diversification


In addition to its land-based franchise network, the Company will start to
promote its stand-alone internet offering in Italy - BetshopItalia.com - as well
as promote its recently re-launched telephone betting service.


5)         Geographic Diversification


The Company continues to explore new markets to roll out its franchised betting
shop model and online service.  Of particular focus are Romania, where it will
open its first shop in November 2007, and Cyprus.


In addition, the Company is in the process of opening a new operations centre in
Italy and will relocate customer service and administration functions from the
United Kingdom to Italy in the course of November to provide a more localised
service.   The Company also expects to open the first of its 59 shops operating
under new "corner" licences, allowing over-the-counter cash betting, in November
with all being operational by the end of 2007.


Henry Birch, Chief Executive said:


"We are pleased to set out the focus of the business going forward, which
incorporates significant opportunities in Italy and beyond.  We have spent the
last few months restructuring parts of the business and, coupled with some of
the ongoing corporate discussions we are having, feel that we are in a strong
position to deliver value to shareholders. "



Further information is available on Leisure & Gaming plc's website
www.lngplc.com.

For further information, please contact:

Henry Birch, Chief Executive, Leisure & Gaming plc
Tel: 020 8150 5718

Jonathon Brill/Caroline Stewart, Financial Dynamics
Tel: 020 7831 3113

William Vandyk, Blue Oar Securities
Tel: 020 7448 4400


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