Acquisition - further details

RNS Number:7770Z
Betbrokers PLC
06 July 2007






Press Release                                                       6 July 2007
                                 Betbrokers plc
                        ("Betbrokers" or "the Company")

                        Further re proposed acquisition

Further to the announcement on 24 May 2007 Betbrokers plc, (AIM: BETB), the UK's
first retail and wholesale brokerage and clearing house for the sports betting
industry, is pleased to announce that it has signed an Asset Purchase Agreement
(the "Agreement") with Global Sports Edge International, Inc. ("Global" or the "
Seller") to acquire the assets and business operations (the "Business") of
Global, which trades as Winning Edge, for a consideration of US$6.8 million
payable in Betbrokers' shares.  The acquisition is subject to US Securities and
Exchange Commission approval and the approval of Winning Edge International Inc.
("Winning Edge") shareholders.  Winning Edge is the parent company of Global.



The acquisition will allow Betbrokers to satisfy the growing and largely unmet
demand for information on US sports and sports betting to its increasing UK and
European customer base.  Whereas betting on sports is illegal in the majority of
US states, the provision of data and sports betting information, known as
handicapping in the US, is legitimate and Winning Edge is a leading player in
this growing market.  In turn, Winning Edge will significantly benefit from
Betbrokers' offering of European sports information which will satisfy their
market needs and enable them to sell this data along side their US information
sales.



Under the terms of the Agreement the consideration will be satisfied through the
issue of new Betbrokers' shares ("Consideration Shares") to the Seller.  The
value of the Betbrokers' shares to be issued shall be determined by the average
of the closing bid price on the five consecutive trading days prior to the
completion of the transaction ("the Closing").  Under the terms of the Agreement
the Consideration Shares are subject to a lock-in period whereby US$1.0 million
of Consideration Shares will be locked-in for a period of 7 months from Closing,
after 7 months these shares may be sold in tranches of up to US$160,000 per
month for the following 5 months with US$200,000 being available for sale in the
sixth month.  The remaining US$5.8 million of Consideration Shares will be
locked-in for a period of 12 months from Closing.



For the financial year to 31 July 2006 Winning Edge reported a turnover of
US$5.601 million and a loss after tax of US$1.205 million.  Approximately US$0.8
million of costs in the financial year ended 31 July 2006 were associated with
US regulatory costs associated with Winning Edge's US public listing.  For the
six months ended 31 January 2007 Winning Edge reported turnover of US$4.021
million and a loss after tax of US$0.358 million.  It is expected that the
acquisition of the Business of Winning Edge will make a positive contribution to
Betbrokers' earnings as the business will no longer be subject to the regulatory
costs of the US public markets.



Wayne Lochner, Chairman and Chief Executive of Betbrokers, commented: "Acquiring
Winning Edge's business is a win-win for both parties.  There is a huge amount
of trading on US sports going on outside America and Betbrokers is now well
positioned to provide and sell data to this large market which currently
struggles to source detailed information on US sports.  In addition, we are able
to further empower our clients by offering longer trading hours and we are very
pleased with the progress of the transaction.



"Aside from being likely to prove earnings enhancing, the transaction advances
our overall strategy of developing a global service in which the selling of data
is a crucial part and we look forward to integrating this business into
Betbrokers' existing growing operations."



Closing is expected on or around 23 August 2007 and a further announcement will
be made in due course.

                                    - Ends -



For further information, please contact:

Betbrokers plc
Wayne Lochner, Chairman and Chief Executive         Tel: [phone]
[e-mail]                             www.betbrokers.com


Hanson Westhouse Limited
Tim Metcalfe / Matthew Johnson                      Tel: [phone]
[e-mail]                    www.hansonwesthouse.com




Media enquiries:
Abchurch Communications
Chris Lane / Franziska Bohnke                       Tel: [phone]
[e-mail]                www.abchurch-group.com



About Betbrokers plc



Betbrokers is the UK's first independent betting brokerage.  The Company
facilitates transactional business between both retail gamblers and wholesale
clients.  The Company's operations were formally launched in 2005.



Betbrokers provides services, from its dedicated dealing room in London's Canary
Wharf, to two groups of participants within the gambling industry:



  * The Company provides its retail customers with the advantage of best price
    execution together with the ability to deal 'in size' in a majority of
    sporting events.  Retail customers will soon be able to access advanced
    data-sales and trading analysis platforms, which feed from aggregated
    internal price mechanisms.
  * Betbrokers already has agreements with over 100 bookmakers, providing them
    with the opportunity to take on additional bets from retail customers.
    Importantly, the Company also offers bookmakers a facility to effectively
    manage their risk exposure by hedging positions anomalously using Betbrokers
    as an intermediary to deal with the other bookmakers.


Betbrokers floated on the AIM market of the London Stock Exchange in November 
2006.  Further information is available on the Company at: www.betbrokers.com



About Winning Edge



Las Vegas-based Winning Edge is America's only publicly traded sports
information and tipping service, known as handicapping in the US.  Winning Edge
specialises in developing and marketing sports handicapping advice and
information via television, radio and the Internet.  The Company also produces
high quality sports, television and radio programming and sells advertising as
well as sponsorship and marketing opportunities to its exclusive database of
more than one million sports and gaming fans.




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