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Inspired Gaming Grp (INGG)

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Wednesday 19 December, 2007

Inspired Gaming Grp

Offer Talks Terminated

Inspired Gaming Group plc
19 December 2007



                   Inspired Gaming Group PLC ('the Company')

                             Offer Talks Terminated


The Board has noted the announcement made by FL Group hf ('FL Group') and whilst
it is disappointed that FL Group will not be making an offer in light of current
financial market conditions, it welcomes FL Group's continued support of the
Company.  The Board remains committed to enhancing shareholder value.


The Directors expect to report results for the year ended 30 September 2007
('FY07') substantially in line with their expectations showing significant
growth in profit (before goodwill, share based payment charge and exceptionals)
from the prior financial year. Margins have improved as a result of the
continued shift towards Server Based Gaming ('SBG') related incomes. Notably,
gross profit from sales of SBG software and services in FY07 has more than
doubled in comparison to the prior financial year. As expected, the Company has
continued to withdraw from analogue-related revenue streams that generally
deliver lower incomes than the Company's SBG machines.


The business has made substantial progress on key strategic goals during FY07.
Progress achieved during FY07 has included significant growth in the volume of
SBG terminals installed and owned from approximately 19,000 to 23,000, with SBG
terminals now accounting for over 30 per cent. of the owned machine estate. In
addition to the owned SBG estate, by the end of FY07 the software division of
the business had rolled out over 1,000 SBG casino terminals and closed FY07 with
orders in hand for approximately 3,000 SBG bingo terminals that the Company
expects to be deployed in the first half of the calendar year 2008.  In addition
to key account wins and extensions with major UK customers including Betfred and
Paddy Power, the business has made substantial progress on the launch of its SBG
Amusement With Prizes ('AWP') product. The Company now has over 1,300 SBG AWP
machines installed. The Directors believe that SBG Bingo and SBG AWP are key
drivers of growth for the Company's UK operations.


Additionally, the Company signed SBG Software agreements in the second half of
FY07 with international casino and gaming clients including Galaxy Entertainment
in Macau, and Silver Heritage Limited in south east Asia, and has deployed SBG
terminals under contract with The Coca-Cola Company, Inc. in the US, Ireland and
Germany.


Trading in the current financial year has commenced in line with the Directors'
expectations, however the Directors are mindful of difficult retail economic
conditions particularly in the Pub sector. The Directors remain optimistic about
the future prospects of the Company.


For further information please contact:


Andy Berry                     Fishburn Hedges              +44 (0) 20 7839 4321
                                                            +44 (0) 7767 374 421


Morgan Bone                    Fishburn Hedges              +44 (0) 20 7839 4321
                                                            +44 (0) 7767 622 967


Evolution Securities as Nominated Adviser to the Company:

Stuart Andrews                                              +44 (0) 20 7071 4300



Forward-looking statements


Certain statements contained in this announcement, constitute 'forward-looking
statements'. In some cases, these forward-looking statements can be identified
by the use of forward-looking terminology, including the terms 'believes',
'estimates', 'plans', 'prepares', 'anticipates', 'expects', 'intends', 'may',
'will' or 'should' or, in each case, their negative or other variations or
comparable terminology. Investors should specifically consider the factors
identified in this summary and the announcement which could cause actual results
to differ before making an investment decision. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements of the Company and its
group, or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such forward-looking statements are based on numerous assumptions
regarding the Company and its group and/or the present and future business
strategies and the environment in which the companies will operate in the
future. These forward-looking statements speak only as at the date of this
announcement.




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