Completion of acquisition

RNS Number:5703E
Betbrokers PLC
27 September 2007


Press release                                                  27 September 2007




                                 Betbrokers plc

                        ("Betbrokers" or "the Company")



                Betbrokers Completes Acquisition of Winning Edge
    in the USA for US$6.5 million (the "Acquisition") and Issues New Shares



Betbrokers plc, (AIM: BETB), the UK's first retail and wholesale brokerage and
clearing house for the sports betting industry, announces that it has now
completed the purchase, originally announced on 24 May 2007, of the assets of
Winning Edge International, Inc. ("Winning Edge"), and has issued additional
shares as consideration for the Acquisition, for working capital purposes and in
lieu of payment to its ambassadors and consultants.



Under the terms of the Acquisition, Betbrokers will acquire all of the operating
assets of Winning Edge for a consideration of US$6.5 million satisfied through
the issue of 64,356,436 new Betbrokers' shares at 5 pence per share ("
Consideration Shares").



Betbrokers has also issued 21,029,170 new shares (together with the
Consideration shares the "New Shares") at 4.5 pence per share. 18,000,002 were
issued for cash proceeds of #810,000.09 which will provide the company with
additional working capital, and 3,029,168 were issued in lieu of payment to its
ambassadors and consultants. The New Shares will be issued and allotted and rank
pari passu with the existing Ordinary Shares of 0.25 pence each in the Company.
Trading of the New Shares on AIM is expected to commence on Wednesday 3 October
2007.  The total number of Ordinary Shares in issue following the acquisition
will be 296,471,873.



Under the terms of the Agreement the Consideration Shares are subject to a
lock-in period whereby all of the Consideration Shares will be locked-in for a
period of 12 months from completion.



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. Following the acquisition, Winning
Edge's television show is now available through the Betbrokers' website,
offering Betbrokers' clients access to this highly regarded information service
on US sports.  Winning Edge will also be in a position to create a sports
handicapping business which provides advice on UK sports based on the US model,
which will be executed through an online site, as well as television shows.



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 costs
associated with being listed on the US public markets.



The acquisition is line with the Company's stated strategy of providing and
selling data. This acquisition will complement and significantly enhance
Betbrokers' service offering as it allows the Company to provide customers
outside the US detailed information on US sports.  In addition, this also offers
longer trading hours.  The provision of television and radio content covering US
sports and information services will be sold by Betbrokers to counterparties
worldwide where betting is legal.



Wayne Lochner, Chairman and Chief Executive of Betbrokers, commented: "With the
acquisition of Winning Edge now completed, we can focus on expanding the
business and driving earnings in this exciting new division.  Our initial focus
is to increase demand for Winning Edge's respected sports handicapping service
in the US and Europe and also offer Winning Edge's customers, who are located in
countries where sports betting is legal, the opportunity to place bets through
Betbrokers' dedicated dealing facility in London.



"I am optimistic that the opportunities and synergies created following the
acquisition of Winning Edge will deliver meaningful revenues and profits for the
Group."



Wayne Allyn Root, Chief Executive of Winning Edge, added: "Since its inception
in 2000, Winning Edge has become a strong brand name in American sports
handicapping by creating America's premier sports handicapping television
pregame show, which has allowed us to build a database of over one million
serious sports gamblers. This partnership will put us in a position to expand
globally, building on our proven existing model, and will have significant
benefits for both Betbrokers' and Winning Edge customers.  Adding our talents,
experiences, resources and know-how will allow Betbrokers to become a
significant player the global sports handicapping business."



                                    - Ends -



For further information, please contact:
Betbrokers plc
Wayne Lochner, Chairman and Chief Executive              Tel: +44 (0) 8448552100
wlochner@betbrokers.com                                       www.betbrokers.com


Hanson Westhouse Limited
Tim Metcalfe / Matthew Johnson                          Tel: +44(0) 20 7601 6100
tim.metcalfe@hansonwesthouse.com                         www.hansonwesthouse.com


Media enquiries:
Abchurch Communications
Chris Lane / Franziska Bohnke                          Tel: +44 (0) 20 7398 7716
franziska.boehnke@abchurch-group.com                      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






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

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