PHUMELELA - ANNOUNCEMENT
Phumelela Gaming & Leisure Limited
( Incorporated in the Republic of South Africa )
( Registration number 1997/016610/06 )
Share code : PHM ISIN: ZAE000039269
Announcement
In a significant breakthrough for Phumelela and South African horse racing,
Phumelela on behalf of Phumelela-Gold Enterprises (PGE) has concluded an
agreement with The Horse Racing Channel (THRC), the holder of the exclusive
television rights to 29 racecourses in the United Kingdom. These 29 racecourses
include virtually all the major racecourses in the UK. This agreement gives PGE
the right to commercially exploit the television broadcast rights on these UK
horse races on a worldwide basis outside of the United Kingdom and the Republic
of Ireland. As part of this agreement Phumelela and the UK totalizator have
agreed to commingle totalizator pools on UK racing as soon as this is
technically feasible. The size of such pools will enhance their attractiveness
to punters internationally.
PGE is a partnership between Phumelela and Gold Circle, which holds the
intellectual property rights to South African horse racing. Phumelela has a 61%
interest in and manages the partnership. PGE intends to rebroadcast UK racing
plus South African racing as a combined package globally. There is already an
established market in several countries for the UK product, which will
facilitate the market development of the combined package in those countries.
The initial term of the agreement is for 3 years and may be renewed for a
further 5 years should the venture be successful. PGE will earn management fees
and share in the revenue generated. PGE has guaranteed certain minimum revenues
to THRC, which are not considered onerous and the agreement is expected to be
earnings enhancing in future years.
Johannesburg
21 May 2004
Date: 21/05/2004 02:48:58 PM Produced by the JSE SENS Department
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