1. 0 2006 Interim Results 24 August 2006

2. 1 Sir Ian Robinson Chairman

3. 2 Rosemary Thorne Group Finance Director

4. 3 Summary of Performance Continuing operations Operating profit (1) Net finance costs (1) Interest income on Hotels sale proceeds Profit before tax (1) Effective tax rate (1) EBITDA (1) EPS (1) 151.3 134.7 12.3 (19.9) (12.1) (64.5) 24.0 - - 155.4 122.6 26.8 24.0% 26.0% 171.3 152.9 12.0 9.8p 5.7p N/A (1) Before non-trading items 2006 £m 2005 £m Variance % B(W) Half year to 30 June

5. 4 Betting and Gaming UK Retail366.4 342.1 111.5 108.8 Ireland & Belgium41.2 35.6 8.6 5.7 eGaming72.6 58.0 19.8 17.5 Telephone Betting33.6 21.6 16.6 8.5 Vernons9.3 9.9 2.1 3.1 Central costs --(7.3)(8.9) Total523.1 467.2 151.3 134.7 Gross Win 2006 2005 £m £m Operating Profit 2006 2005 £m £m Half year to 30 June

6. 5 UK Retail - Results 2006 £m 2005 £m Variance % B(W) Half year to 30 June (2) Rent, rates and utilities (3) Pictures, data, levy, Sky (4) Depreciation = £16.3m (2005: £14.7m) OTC gross win 261.8242.58.0 Machines gross win 104.6 99.65.0 Total gross win 366.4 342.1 7.1 Adjustments to gross win (1) (14.8) (0.5) Net revenue 351.6 341.6 2.9 Gross profits tax(38.5) (49.3) 21.9 Staff costs(91.5)(84.4)(8.4) Property costs (2) (41.4)(36.7)(12.8) Content costs (3) (28.3) (25.4)(11.4) Other costs (inc. depn) (4) (40.4) (37.0)(9.2) Operating profit 111.5 108.8 2.5 (1) Fair value adjustments, VAT, associate income

7. 6 UK Retail - KPIs 20062005 Variance % B(W) Like for like total gross win growth1.0%(0.9)% Like for like OTC gross win growth1.4%(6.7)% Like for like machines gross win growth0.1% 16.8% OTC margin16.9%15.8% Like for like total costs (1) increase3.2%5.9% Like for like shop staff costs (de)/increase(0.3)%12.0% Stake per slip (2) £8.36 £8.54 (2.1) Average number of FOBTs 6,797 6,087 11.7 Average weekly gross win per FOBT £548 £576 (4.9) Half year to 30 June (1) Excludes VAT and Gross profits tax (2) Slips exclude machines

8. 7 eGaming - Gross win 2006 £m 2005 £m Variance % B(W) Sportsbook 24.616.053.8 Poker21.318.515.1 Casino21.418.416.3 Games 5.35.13.9 Gross win 72.6 58.0 25.2 Half year to 30 June

9. 8 eGaming - Results 2006 £m 2005 £m Variance % B(W) Gross win 72.6 58.0 25.2 Fair value adjustments (1) (6.0)(3.4) Net revenue66.654.6 22.0 Gross profits tax(3.8) 5.7 (3.2) 5.9 Levy(0.8) 1.2 (0.6) 1.1 Staff costs(5.1) 7.7 (4.9) 9.0 Software & geographical partners (2) (15.0) 22.5 (12.4) 22.7 Marketing (inc. affiliates)(10.5) 15.8 (7.9) 14.5 Banking & chargebacks(4.8) 7.2 (2.5) 4.6 Other costs (inc. depn)(6.8) 10.2 (5.6) 10.3 Operating profit 19.8 29.7 17.5 32.1 13.1 Half year to 30 June (2) Payments to third party software and platform providers and geographical partners %age of net revenue %age of net revenue (1) Adjustments for free bets, promotions and bonuses

10. 9 eGaming - KPIs 20062005 Variance % B(W) Half year to 30 June (2) A new player who has registered and deposited funds during the period Unique active players (000’s) (1) 42030637.3 Real money sign-ups (000’s) (2) 197 14436.8 Cost per acquisition (3) £81.83£78.05(4.8) Adjusted cost per acquisition (4) £50.65£57.7312.3 (3) Total of all online and offline marketing spend and affiliate expenses divided by the aggregate real money sign ups (4) Total of all online and offline marketing spend less any CRM spend divided by the total real money sign-ups (1) A player who has contributed to rake and/or placed a wager during the period

11. 10 Telephone Betting - Results 2006 £m 2005 £m Variance % B(W) Half year to 30 June (1) Direct operating costs include telephone, bandwidth and banking costs Gross win exc. High Rollers20.315.729.3 Fair value adjustments(0.1)(0.2) Net revenue exc High Rollers 20.2 15.5 30.3 High Rollers’ net revenue13.35.9 Net revenue33.521.456.5 Gross profits tax(5.1) (3.3) Levy(1.8)(1.2) Staff costs(4.5) 22.3 (4.1) 26.5 Direct operating costs (1) (1.7) 8.4 (2.3) 14.8 Other costs (inc. marketing and depn)(3.8) 18.8 (2.0) 12.9 Operating profit16.6 8.5 95.3 %age of net revenue excl. High Rollers %age of net revenue excl. High Rollers

12. 11 Telephone Betting - KPIs (1)Numbers of calls (excluding customer service calls) (2)A player who has placed a wager during the period 20062005 Variance % B(W) No. of calls (000’s) (1) 4,0593,7518.2 Agent cost per call55p 65p 15.4 Gross win margin (exc. High Rollers)8.8%5.9% Unique active players (000’s) (2) 100.1 99.80.3 Average monthly active player days (000’s) 218.6 213.1 2.6 Half year to 30 June

13. 12 Analysis of 2006 Capital Expenditure Capex UK development (1) 14.515.8 Xtra4.30.7 Ireland1.71.8 Other (including IT £5.3m; 2005 - £2.2m)9.74.8 Retail30.223.1 eGaming / Telephone Betting2.51.7 Total 32.724.8 Acquisitions Jack Brown5.3- Other (UK: £1.7m, Ireland: £7.2m)8.938.2 46.963.0 2006 £m (1) Development = new licences, relocations and refurbishments 2005 £m Half year to 30 June

14. 13 Disposal of Hotels £m Cash proceeds (1) Assets disposed Related cost of disposal Foreign exchange Profit on disposal 3,241 (2,769) (97) 4 379 £m 3,298 as announced on 23 February 2006 (57) debt and working capital adjustment 3,241 (1)

15. 14 Cash Flow Cash generated by operations 127.8 Interest and tax(0.9) PPE capital spend (1) (38.4) Intangibles(2.3) Acquired subsidiaries (6.2) Total capital spend (1) (46.9) Cash flow after interest, tax and capital80.0 Hotels disposal proceeds 3,241.4 Dividends paid(4,179.6) Proceeds from issue of shares, convertibles and options339.5 Exchange and other movements (8.1) Net borrowings movement (526.8) Opening net borrowing (397.9) Closing net borrowings (924.7) Annualised net debt to EBITDA* ratio for continuing operations3.0 *H1 2006 plus H2 2005 (1) Continuing operations only 2006 £m Half year to 30 June

16. 15 Christopher Bell Chief Executive Officer

17. 16 Key Developments Technology World Cup 2006 International expansion - Italy Sportsbetting margins The 2005 Gambling Act

18. 17 First Half Good sportsbetting margins Record World Cup Integration of Jack Brown Continued growth in shop numbers Strong performance in Telephone Betting Increased International development activity New Paddington Casino and Sportsbar

19. 18 Retail Ladbrokes Xtra installed Renewal of EPOS systems Testing of self-service terminals New FOBT estate (starts in Q3) Continuing shop development Smoking ban

20. 19 World Cup rds of favourites won over the whole tournament, with few upsets A number of high profile draws at the knockout stages Tournament contributed £17.5m gross win across all channels (H1: £10.6m, H2: £6.9m) 220,000 new recruits to eGaming and Telephone in first half 2 3

21. 20 International Pianeta Scommesse Joint Venture: –Government licensed provider –Around €100m capex in Retail, eGaming and Telephone 300 shops in China, in 2 provinces (Beijing and Tianjin) Sportsbetting in Russian casinos JV with Intralot to tender for the Turkish lottery Final bidders for football betting in Vietnam US review ongoing

22. 21 UK Retail Gross Win Margin % 2006 HY 03-05 3 FY Av. Horses15.214.0 Football19.121.9 OTC16.916.2 Horse overround per runner* 1.501.62 %1 st /2 nd favs51.051.3 *Overround – Theoretical profit margin set by the bookmaker on every “book” made

23. 22 eGaming Solid first half Good Sportsbook performance Good Casino and Games growth Competition in the Poker market place New customer acquisition cost remains low at £51 Offline events continuing

24. 23 2005 Gambling Act Fully in force from Autumn 2007 Winter evening opening for 7 months £500 AWP Jackpot machines 17 new UK casinos

25. 24 Ladbrokes Xtra installed 2006 Retail Developments Jack Brown refurbishment New screen systems installed Betting into PMU French Pools Virtual football Sports Xtra (All internet markets) New EPOS system Betting into US Pools New dual screened FOBTs £1m virtual events Self Service Betting Terminals Q1 Q4 Q3 Q2

26. 25 2006 eGaming Developments Q1 Q4 Q3 Q2 BackgammonLadbrokes Financials (Currencies) BingoAdditional payment method - Ukash New Casino & Games products Mah Jong Extended ‘Betting in Running’ Poker School and 2 nd Poker Cruise Additional payment method - Paypal Pokerbet Updated download CasinoUpdated Poker site Complete new SportsbookNext generation Poker software New Ladbrokes Financials markets (Brent) Wireless hospitality betting Updated mobile phone Sportsbook New mobile phone Casino Pontoon Bet New Casino & Games products ‘Deal or No Deal’ New Ladbrokes Financials markets (NYMEX) Poker leaderboardsViewable virtual racing

27. 26 2006 Interim Results 24 August 2006

28. 27 Appendix

29. 28 UK Retail - Shop Numbers Plus: 32 relocations 27 refurbs 13 extensions

30. 29 eGaming – Net Revenue 2006 £m 2005 £m Variance % B(W) Sportsbook 23.815.652.6 Poker18.417.64.5 Casino19.416.418.3 Games 5.05.00.0 Net revenue 66.6 54.6 22.0 Half year to 30 June

31. 30 eGaming – KPIs 20062005 Variance % B(W) Half year to 30 June Sportsbook Gross win margin6.7%7.1% Unique active players (000s)31822342.6 Average monthly active player days (000s)64445043.1 Yield per unique active player (£) (1) 75707.1 Poker Unique active players (000s)1147846.2 Average monthly active player days (000s)49635639.3 Yield per unique active player (£) (1) 161225(28.4) Casino Unique active players (000s)584626.1 Average monthly active player days (000s)725530.9 Yield per unique active player (£) (1) 336358(6.1) Games Unique active players (000s)624829.2 Average monthly active player days (000s)705429.6 Yield per unique active player (£) (1) 81105(22.9) (1) Net revenue per unique active player for the period

32. 31 Ireland Gross win 23.2 16.9 37.3 Fair value adjustments (0.1) - Net revenue 23.1 16.9 Duty / Gross profits tax (3.3) (2.0) Other costs (12.9) (11.8) (9.3) Operating profit 6.9 3.1 122.6 Shop numbers 165 141 (1) 17.0 (1) Shop numbers at 31 December 2005: 148 Half year to 30 June 2006 £m 2005 £m Variance % B(W)

33. 32 Belgium Gross win18.0 18.7 (3.7) Duty / Gross profits tax (6.7) (6.9) Other costs (9.6) (9.2) (4.3) Operating profit 1.7 2.6 (34.6) Shop numbers 299 306 (1) (2.3) (1) Shop numbers at 31 December 2005: 301 Half year to 30 June 2006 £m 2005 £m Variance % B(W)

34. 33 Gross win / Net revenue9.3 9.9 (6.1) Duty / Gross profits tax(1.3) (1.4) Other costs(5.9) (5.4) (9.3) Operating profit2.1 3.1 (32.3) Customer recruitment (000’s): New customers 66.079.9(17.4) Reactivated customers35.334.23.2 Vernons 2006 £m 2005 £m Variance % B(W) Half year to 30 June

35. 34 Taxation £m Normal tax charge: Tax charge at 24% on continuing operations profit before tax and non-trading items Tax charge at 35% on discontinued operations profit before tax and non-trading items Tax charge at 24.7% for Total Group Non-trading tax charge: Tax credit on non-trading items: Total tax charge 37.3 3.8 41.1 (6.6) 34.5

36. 35 2006 World Cup – Gross Win £m H1H2Total UK Retail 6.04.610.6 Ireland & Belgium 0.90.4 1.3 eGaming 3.41.2 4.6 Telephone Betting 0.30.7 1.0 Total 10.66.917.5

37. 36 Cash flow after interest, tax and capital Profit before tax and finance costs - continuing151.3 Profit before tax and finance costs - discontinued11.2 Profit before tax and finance costs - total162.5 Depreciation and amortisation20.0 Decrease in retirement benefit obligation (60.2) Other non cash movements5.5 Cash generated by operations127.8 Income taxes paid (33.3) Finance costs paid(11.4) Net cash inflow from operating activities83.1 Interest received 43.8 Total capital spend (1) (46.9) Cash flow after interest, tax and capital 80.0 (1) Continuing operations only Half year to 30 June 2006

38. 37  Definition of Revenue - IFRS (1) =gains and losses from betting and gaming net of discounts (free bets, bonuses, promotions) and VAT.  - UK GAAP=amounts staked. Amounts staked = “UK GAAP” Revenue 6,359.5 5,709.6 11,500.0 Gross win 523.1 467.2 918.0 Free bets, promotions, bonuses (7.0) (4.1) (8.2) VAT (2) (15.6) (1.3) (4.4) Associate income 1.6 1.3 3.1 Net revenue 502.1 463.1 908.5 (1)Referred to as net revenue (2)FOBT subject to VAT from December 2005 Revenue Under IFRS H1 2006 £m H1 2005 £m FY 2005 £m