Sportsworld Media Group plc (‘Sportsworld’), the brand-focused, sports and lifestyle content company, announced today the acquisition of Melbourne-based Elite Sports Properties Limited (‘ESP’) for an initial cash consideration of approximately AUS$17.5m (approximately £6.1m). Further deferred consideration, up to a maximum of AUS$23.0m (approximately £8.1m), may become payable, depending upon the net profits of ESP, over the two financial years ending 30 June 2003, payable in Sportsworld shares. ESP is expected to be earnings enhancing in its first full year of ownership.

In the year ended 31 December 2000, ESP produced a profit before tax of AUS$4.0m (approximately £1.4m) on revenues of AUS$7.6m (approximately £2.6m), representing 74% and 24% respective increases over the previous year. The net assets being acquired total AUS$7.75m (approximately £2.7m).

ESP specialises in athlete management, licensed product, live entertainment, promotions and related intellectual property – as such it is highly complementary to Sportsworld and its activities worldwide and in Australia. Since its establishment in 1996, ESP has become a significant player in the sports marketing business in Australia with key operations in:

Athlete Management – managing over 20 current Olympic, World and Commonwealth champions, including some of Australia’s highest profile Olympians such as Michael Klim and Susie O’Neill, along with Olympic legends such as Mark Spitz and Shane Gould. The majority of ESP’s contracts in this area run for 3-4 years.

Football Management – managing appearances, speaking engagements, endorsements, licensing and sponsorships for many of the most prestigious Australian Football League (AFL) players, including Chris Grant, Peter Everitt and Shane Crawford. Shane and Peter are household names in Australia and are contracted by Channel 9 to appear regularly as panellists on the top-rating programme, The Footy Show.

Licensing – managing the master license and royalties for AFL, the Sir Donald Bradman Foundation, ESP Athletes and Sydney Organising Committee of the Olympic Games (SOCOG) Memorabilia.

Events – managing events including the AFL Grand Final Village and Golf Days.

Direct Sales – sports memorabilia and merchandise development, design and marketing direct to consumers.

Sportsworld has already worked with ESP on the creation of The Big Screen Footy Show – an in-match screen which combines live edits, instant replays, presenter analysis and features – illustrating the complementarity of the two businesses and the combination of ESP’s portfolio of athletes and AFL relationship with Sportsworld’s production and media sales capabilities.

ESP complements Sportsworld’s sports marketing subsidiary in Melbourne, IMS, which the Group acquired in November for AUS$850,000 (approximately £300,000). Like ESP, IMS manages and provides athletes for sponsorship opportunities and events, as well as managing their professional development, the latest of which is top Australian surfer, Taj Burrow. The acquisition of ESP will provide further opportunities to create cross-selling opportunities between Sportsworld’s Australian operations.

Application will be made in due course, to the United Kingdom Listing Authority (‘UKLA’) and the London Stock Exchange, for admission of any new ordinary shares due as deferred consideration to the Official List of the UKLA and the London Stock Exchange’s markets for listed securities.

Commenting on the acquisition, Geoff Brown, Chief Executive of Sportsworld said:

‘This acquisition makes Sportsworld one of the largest sports marketing companies in Australia and provides us with further opportunities to cross-promote our activities in a nation which places high value on its sporting heroes. The synergies between our existing businesses and ESP are clearly evident, and we look forward to further developing our Australian business.

‘The purchase is in line with our focused acquisition strategy of developing a portfolio of sports and lifestyle related media and marketing properties.

‘As we indicated at our interim results in March, first half momentum is continuing into the second. Third quarter business has continued to grow strongly, and we expect trading to continue in line with expectations. New opportunities continue to present themselves, and we have a number of exciting projects under development as the Group builds upon its current television content, sports marketing and youth lifestyle interests. We continue to be confident of a successful outcome for the full year.’

Enquiries:

Geoff Brown, Chief Executive
Sportsworld Media Group plc
Tel: 020 7240 9626

Tim Spratt / Tania Wild
Financial Dynamics
Tel: 020 7831 3113