Copyright 2008

[ July 22nd 2008 ]

SCi Entertainment Group - owner of Eidos plc and publisher of Tomb Raider - today announced a preliminary trading update ahead of the company's full year disclosure on September 15, 2008. As previously announced, SCi has put a clear strategy in place and has taken decisive steps to become a studio-led business with a focus on cornerstone franchises and a flexible approach to distribution.

During the second half of the financial year SCi announced good progress had been made with the cost reduction and re-structuring plan outlined on 29th February 2008. In addition, during the period, the Company arranged a new debt facility of 25 million and raised 60 million before expenses by way of a successful Placing and Open Offer of new shares to provide working capital.

Financial bullet points include the reduction of annual operating costs by 14 million, a 25% reduction in work-force, the sale of Spanish distributor PROEIN, the downsizing of Pivotal Games, the transition of production services to Montreal and the integration of North American distribution with Warner Bros on track with full collaboration on upcoming title launches.

Revenues are expected to be approximately 134 million and losses at the EBITDA level (excluding share based compensation and restructuring charges) are expected to be no more than 100 million. The full year loss reflects both the significant write-offs made to the carrying value of the Group's development projects at the half year and the decision, as previously announced, to delay a number of major product launches out of the second half into the next financial year.

Game releases scheduled for the first half of 2008/09 include Tomb Raider Underworld. This next edition of the Lara Croft title is scheduled to be released on 18th November in the U.S. and 21st November in Europe/ROW to capitalise on the run-up to the key holiday season.

Tomb Raider Underworld was one of the most eagerly awaited properties at E3, the major global video games show. In the second half of the 2008/09 financial year, the publisher's launch schedule includes Just Cause 2, Battlestations Pacific and a Batman game.

At time of going to press, SCi Entertainment Group was trading + 0.25 on the London Stock Market with a market capital of 90.72 million. This would suggest confidence in the once-beleagued publisher has been restored following the successful implementation of cost-reduction plans as outlined above.

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