Online Gaming in the USA

GB Group PLC 02 October 2006 For immediate release: 2 October 2006 GB GROUP PLC ('GB' or the 'Group') Statement re Online Gaming in the USA New US legislation introduced on 30 September 2006, if signed into law, will effectively make Online Gaming illegal in the USA. One of GB's three business areas, DataAuthentication is a leading provider of electronic age and identification services to a range of sectors including Financial Services, Online Gaming and Mobile Telecommunications. Currently, these are provided for the purpose of verifying the age and identity of UK citizens only. GB's strategy however is to provide an International service for verifying overseas citizens. GB's International verification service is due to be launched this month and will be used for the verification of overseas citizens in 21 countries. An element of GB's expected future business, prior to the proposed new US legislation, was the verification of age and identity of US citizens on behalf of Online Gaming clients which will not now materialise. To put this into context, however, the element of revenue that is included in forecasts for the current year to 31 March 2007 in relation to Online Gaming in the USA is £150,000 or 1% of a consensus Group revenue forecast* of £16.9 million and, in the following year to 31 March 2008, is £500,000 or 2% of a consensus Group revenue forecast* of £23.4 million. Accordingly, this is not regarded as significant in terms of GB's longer term strategy. In terms of the Group's existing Online Gaming business, regulators in the UK and Europe have historically taken a different approach to US regulators and structured regulation and licencing of Online Gaming in these territories is well established. GB expects the effect of the new US legislation will be that major Online Gaming operators will now concentrate their businesses in European and other markets where Online Gaming is legal and where GB has a market leading position. In addition, registration procedures to ensure compliance with European legislation to prevent under-age gaming and promote social responsibility, is expected to be tightened. Both of these moves are likely to have a positive impact on GB's existing electronic age and identity verification business. Richard Law CEO commented 'GB's strategy for electronic age and identity verification is to provide a service of the highest quality and reliability which is unobtrusive to the public but enables businesses to verify their customers in seconds, providing compliance with legislation and minimising identity fraud. New high growth internet models, where registration takes place on line and paper proofs of identity are ineffective, represent fertile ground for GB's services. Growth in the market for electronic age and ID verification has exceeded our expectations to date. The Board's view is that this continues to represent a real and substantial opportunity for the Group.' * Consensus of the Group revenue forecasts of three firms of stockbrokers For further information, please contact: GB Group plc Richard Law, Chief Executive 01244 657333 Mona Navin-Mealey, Finance Director Weber Shandwick Square Mile 020 7067 0700 Richard Hews Helen Thomas Website www.gb.co.uk Notes to Editors About URU (TM) URU is an electronic identity verification service which was developed jointly with BT and is DataAuthentication's principle offering. URU, which is powered by GB's ID3 (TM) search engine and decision making technology, provides access to GB's comprehensive range of identity data and BT's high capacity web delivery. It helps organisations to protect themselves from the growing problem of identity theft and fraud, which is estimated to cost the UK economy over £1.7 billion per annum. URU enables companies subscribing to the service to make an instant decision whether to accept the identity claimed by any given individual and confirm their age in seconds. URU works by cross checking personal information provided by an individual at the point of acquisition against a comprehensive range of datasources to confirm that an individual is who they claim to be, live where they claim to live and meet certain minimum legal age requirements. No personal data is disclosed by the reference databases and as a result URU is compliant with the Data Protection Act. URU also provides a valuable audit trail demonstrating that the necessary checks have taken place, thereby helping companies comply with legislation, including the 2nd European Money Laundering Directive, Proceeds of Crime Act and Minimum Legal Age requirements of certain industry sectors. The addition of data from CallCredit also enables users of URU to incorporate credit reference data. As a result of legislation, new opportunities and social responsibility requirements, the market for electronic ID verification is significant and growing. Although an estimated 0.5 billion manual ID checks are conducted annually in the UK, less than 3% of these are currently performed electronically. URU has demonstrated that electronic checks are more effective, less expensive and more robust. The market is moving towards electronic checks as fraudulent documents become ever more sophisticated, more readily available and more difficult to check manually. It is estimated that by 2010, the market for electronic ID checks could be 300 million checks per annum. GB works closely with trade and industry associations, such as the Finance and Leasing Association, the Remote Gambling Association and the Financial Technology Research Centre, to advise businesses that more robust processes can prevent financial crime. We have worked closely with the Gaming Industry to address social issues such as underage gambling and addiction and our Social Responsibility Consultancy helps Gaming operators formulate best practice to comply with regulatory requirements and improve profitability. About GB Group plc GB Group plc provides a range of products and services to enable organisations to capitalise on one of their greatest assets - customer data. The Company has expertise across a range of sectors and is able to transform customer data into valuable information, enabling clients to make better, more informed decisions. The development of innovative software and services, through to the provision of the UK's most comprehensive consumer business databases - The National Register (R) and the National Authentication Register - positions GB Group as a widely acknowledged industry leader in its specialist markets. We are constantly improving business processes by building on our core values of Innovation, Quality and Excellence. This is reflected in our customer satisfaction surveys and also through research, carried out by Manchester Business School, which confirms our products are out performing the competition. GB Group plc has three complementary offerings: • DataAuthentication helps businesses validate personal identity information and provides anti-fraud solutions to fight crime. • DataIntegrity helps companies capture and maintain accurate customer contact data, an essential foundation for any profitable customer relationship. • DataSolutions empowers companies to consolidate and analyse customer data from various sources, enabling them to make better, more informed decisions. Established since 1989, GB's core competencies combined with industry sector knowledge have enabled the company to deliver significant value to organisations such as Standard Life, Scottish Power and TD Waterhouse in helping them derive maximum value from their customer data and sustain real advantage over their competition. GB Group is supported by its key relationships with major organisations with whom it works with on major initiatives (an example being British Telecom), together with a team of highly talented and motivated staff successfully delivering business solutions. GB Group plc is listed on the London Stock Exchange (www.gb.co.uk). This information is provided by RNS The company news service from the London Stock Exchange

Companies

GB Group (GBG)
UK 100

Latest directors dealings