Highlights

• Profit after tax including gains from exceptional items of £11.5m (2005: £1.9m).
• Profit after tax from continuing operations increased by 25% to £5.0m (2005: £4.0m).
• Net debt at end June 2006 reduced by 18.4% to £92.3m (June 2005: £113.1m).
• Strategic review continues:
  • Loss making Bet Direct sold for £12.5m in cash;
  • Termination of ITV contract and closure of division.
• Business strategy refocused on core business of football-related gaming products plus bingo and online casino and poker.
• Littlewoods brand overhaul initiated – new brand to be launched prior to August 2007.
• Earnings per share of 1.95p (2005: 0.34p); earnings per share from continuing operations 0.86p (2005: 0.68p).

"Sportech is starting a process of significant change. We have great products and we operate in growing global markets. Our products are at the heart of football, gaming and leisure and this is a very strong base to operate from. Having sold loss making operations we are now focused on growing our core businesses of football-related gaming, online bingo, poker and casino. We are addressing all areas of our business including new product issues, technology, distribution and commercial property.

"The outcome of the strategic review will not result in an instant turnaround but we are convinced that the efforts of your new Board will be reflected in a medium to long term strategy that creates a viable growth business delivering enhanced returns for shareholders. The Board looks to the future with confidence."

Ian Penrose
Chief Executive