TOMB RAIDER 7 DEFERRED UNTIL FY06
Copyright 2005 Eidos plc

[ March 10th 2005 ]

Eidos plc, one of the world's leading publishers and developers of entertainment software, today announces its interim results for the six month period ended 31 December 2004. Highlights for that period: Turnover significantly lower due to limited H1 release schedule. Consequential operating losses before goodwill of £26.5 million (operating loss including goodwill £29.2 million)

Shellshock: Nam '67 (new IP) achieved c. 900,000 unit sales. Significant investment in R&D and next generation platforms. Continued focus on management of cost base. Additional short term working capital facility of up to £23 million agreed with RBS. Strategic decision to reschedule certain titles originally planned for H2 release to FY06 including key franchise titles Hitman and Tomb Raider.

Revised release schedule expected to result in a signification negative impact on the results for the current financial year. Proposal received on 2 March 2005 of a possible cash offer at a price of 53 pence per share, subject to one principal condition. However there can be no assurance that this condition will be satisfied and no certainty that an offer will be made nor as to the terms on which any offer might be made. This disclosure had not been made with the consent of the other party.

Commenting on the results, John van Fuffeler, Chairman of Eidos, said: "As these results show, the first half has been a very difficult period for Eidos. Although we had expected to report an operating loss in the first half given the release schedule, this has been exacerbated by the deferral of the PC version of Championship Manager 5 as anticipated, and the disappointing performance of some of the other titles released.

"On the positive side, we have been pleased with the performance of ShellShock: Nam '67 and with the good reviews received for Project Snowblind from Crystal Dynamics which forms part of a strong residual release line up for the remainder of FY2005 including Championship manager 5, LEGO Star Wars, Imperial Glory and Commandos Strike Force.

"The management team has devoted considerable time and effort to the strategic review and today we announce that we received a proposal on 2 March 2005 in relation to a possible cash offer at a price of 53 pence per share subject to one principal condition. However, there can be no assurance that this condition will be satisfied and no certainty that an offer will be made nor as to the terms on which any offer might be made. This disclosure has not been made with the consent of the other party concerned. Given the financial position and standalone prospects for the Company it is the Board's current intention to recommend this offer to shareholders if it is made.

"In the absence of a successful conclusion to the strategic review, the outlook for Eidos as an independent company remains challenging and the strategic decision to defer the release of certain titles to FY06 will have a significant impact on the expected results for the current financial year as a whole."