Embargoed until 0700                                                                                                              30 July 2008

Alphameric plc

("Alphameric" or the "Group")

Interim results for the six months ended 31 May 2008

Alphameric, the leading provider of end to end technology solutions to the gaming market in the UK and Ireland, announces interim results for the six months ended 31 May 2008. 

Highlights: 

• Long term contracts secured with Gala Coral, Ladbrokes and William Hill for the 'TurfTV' closed user group television channel 

• Court proceedings for Amalgamated Racing Limited litigation have now been completed and judgement is expected to be handed down in the near future

• Successful disposal in July 2008 of the Hospitality business to Torex for a total cash consideration of £17.3 million

• The Group is now focused solely on the retail gaming marketplace, where it has a strong position as a provider of retail technology and, through Amalgamated Racing, media and data content

• Rights issue completed in December 2007 raising net proceeds of £9.7 million

• The Group returned an operating profit before exceptional administrative expenses and share based payment charge of £191,000 (2007: loss of £1.4 million)

Peter Bertram, Chairman, commented: 

"The first six months of this financial year has been an exceptionally busy period for the Group, including very significant contract wins by our Amalgamated Racing joint venture and the successful disposal of our Hospitality business. The group is now focused on the provision of end to end solutions for the retail gaming marketplace, where it remains in a strong position. I believe that the completion of the separation process related to the sale of the Hospitality business and a positive outcome in respect of Amalgamated Racing's litigation will leave the Group well placed to deliver value for all of its stakeholders."

-Ends-

For further information, please contact:

Alphameric plc

Peter Bertram, Chairman

Alan Morcombe, Chief Executive                                                       01483 293900

Mike McLaren, Finance Director 

Weber Shandwick Financial

Nick Oborne / Hannah Marwood                                                        020 7067 0700

ALPHAMERIC PLC

INTERIM RESULTS FOR THE SIX MONTHS TO 31ST MAY 2008

Background to Alphameric plc ("Alphameric") and its subsidiaries (together "the Group") and Amalgamated Racing Limited ("Amrac")

Alphameric is a leading provider of end to end technology solutions to the gaming market in the UK and Ireland comprising display systems, EPoS systems and a range of other value added business focussed solutions.  

Alphameric is also a 50% shareholder in Amrac, the joint venture company between Alphameric and Racecourse Media Services Limited (which is in turn owned by a number of the UK's foremost racecourses and Racecourse Investments Limited), which holds exclusive licences with 31 racecourses to broadcast the pictures and data from these courses to bookmaking shops within the UK and the Republic of Ireland on its television channel, TurfTV.

On 1st July 2008, Alphameric sold its Hospitality business to Torex Hospitality Solutions Limited ("Torex") for a cash consideration of £17.3 million, subject to adjustment. The Hospitality business is a provider of end to end technology solutions for the hospitality and specialist retail market within the UK and its results for the period to 31 May 2008 and 31 May 2007 have been included within discontinued operations.

Forward Looking Statements

This document includes forward looking statements concerning both the Group and Amrac. Whilst these forward looking statements are made in good faith they are based upon the information available as at the date of this document and upon current expectations, projections and assumptions about future events. These forward-looking statements are subject to risks, uncertainties and assumptions about the Group and Amrac and should be treated with an appropriate degree of caution.

Review of operations

The first six months of this financial year has been an exceptionally busy period for the Group:

• In late December 2007, a rights issue raising net proceeds of £9.7 million was successfully concluded;

• Also in December 2007, Amrac secured a long term contract for its TurfTV closed user group television channel from Gala Coral for all of its high street betting shops;

• In early January 2008, Amrac secured a long term contract for its TurfTV service with Ladbrokes for all of Ladbrokes' high street betting shops;

• In mid January 2008, Amrac secured a long term contract for its TurfTV service with William Hill for the entirety of its estate of high street betting shops; and

• In April 2008, Amrac began its defence and counterclaim in the High Court; Amrac was defending allegations that the exclusive arrangements under which it holds some of its media rights constitute "collective exclusive licensing" in contravention of UK Competition law and the EC Treaty.  A counter-claim was also made against the claimants for alleged anti-competitive practices.

In June 2008, the Group reached agreement for the sale of the Hospitality business for a total cash consideration of £17.3 million, subject to adjustment.

Whilst we have been pleased with the progress made by Amrac, the court case has been costly both financially and in terms of management time. Court proceedings have now concluded and we are hopeful of a satisfactory conclusion to the matter. It is our understanding that judgment in the case is expected in early August 2008.

The performance of the Leisure business has been and continues to be impacted by the management time required to be dedicated to both the Amrac litigation and the separation process resulting from the disposal of the Hospitality business.

The decision to dispose of the Hospitality business was based upon the scale of its operations being insufficient to enable it to endure the volatility of its marketplace, particularly at a time of contracting consumer spending.

Results

Income Statement

In accordance with the provisions of International Financial Reporting Standard ('IFRS') 5; 'Non-current Assets Held for Sale and Discontinued Operations' we have reported the results for the six months to 31st May 2008 excluding the trading performance of the Hospitality business and restated the prior period six month operating performance to exclude the Hospitality trading performance which is now included within the condensed consolidated income statement as a single line entry entitled: 'Loss for the period from discontinued operations' This caption also includes the expected costs of disposal of the Hospitality business as well as the write down to its fair value of the carrying value of the historic goodwill that had arisen from acquisitions made by the Hospitality business in previous years .

The Group's interest in its joint venture Amrac is consolidated in accordance with IAS 31; 'Interest in Joint Ventures' such that 50% of its revenues, costs and balance sheet headings are included within the Group's consolidated financial information.

Revenue for the six months to 31st May 2008 for the continuing Group was £16,934,000 (2007: £16,723,000). The operating profit before exceptional administrative expenses and share based payment charges for the period was £191,000 (2007: loss £1,404,000).

The basic loss per share was 13.1 pence (2007: loss 1.5 pence).

The exceptional administrative expenses of £3,155,000 (2007 : £nil) relate to the Group's share of Amrac's litigation costs in respect of the legal action as detailed in note 8 to the interim financial information.

In addition, following Torex Retail plc being placed into administration on 19 June 2007, the liability associated with the lease of Southside House, a property previously occupied by our Retail Division which was sold to Torex Retail plc in 2004, reverted to Alphameric plc under the terms of a guarantee given to the landlord. On 16th May 2008 we entered into a deed of release for Southside House at a one-off cost of £1,100,000 in return for Alphameric being released from all covenants and obligations in respect of the property.  This expense is included within the loss for the period from discontinued operations.

Balance Sheet

At 31st May 2008, the Group had gross cash balances of £13,216,000 (2007: £230,000) of which £8,042,000 was the Group's share of Amrac's cash balances (2007: overdraft £410,000). The Group had debt balances due to its principal bankers of £4,218,000 at 31st May 2008 (2007: £7,714,000). On 1st July 2008, the Group received £15,300,000 (before expenses) in respect of the initial payment for the disposal of its Hospitality business.

At 31st  May 2008, the Group was owed £3,000,000 (2007: £3,000,000) by Amrac under a term loan that is due for redemption in September 2008. The Group no longer guarantees the overdraft or any other liabilities of Amrac (2007: overdraft guarantee to a maximum of £5 million).

Disposal

On 5th June 2008, we announced the proposed disposal of the Group's Hospitality business to Torex for a total cash consideration of £17,300,000 comprising £15,300,000 upon completion with an additional £2,000,000 to be held in an escrow account for 12 months against any claims arising under the disposal agreement. In addition, the disposal agreement allows for an adjustment to the purchase price subject to the agreement of the valuation of net assets and other working capital amounts.

The Board took the decision to dispose of the Hospitality business due to its lack of scale at a time of contracting consumer spending.

The disposal was approved by the shareholders at a general meeting on 1st July 2008 and completed immediately afterwards.

Having completed the disposal, the Group's central overheads will now be allocated to a smaller operating base and there will be a significant one-off restructuring cost as a consequence of the separation of the operating businesses which will be charged to the consolidated income statement in the second half of this financial year.

Going forward the continuing Group will focus on the provision of end to end solutions for the retail gaming marketplace, where it remains in a strong position as a provider of both enabling technology and, through Amrac, media and data content.

Dividend

Whilst the Company is at present unable to pay a dividend due to lack of distributable profits, the Board is currently reviewing the position with the intention to resume dividend payments to shareholders at the appropriate time.  Similarly it is the Board's intention to ensure, as far as practicable, that the Company thereafter maintains a progressive dividend policy.

Board Composition

Stephen Mansfield was a director of Alphameric from 26th April 2007 until 22nd April 2008 and a director of Alphameric Solutions Limited throughout the period, resigning on completion of the disposal of the Hospitality business on 1st July 2008.  

Rights Issue

On 27th December 2007, Alphameric successfully completed a rights issue that raised approximately £11 million before expenses (net £9.7 million). These funds have been used to strengthen the Group's balance sheet.

Outlook

With respect to Amrac, much rests upon the outcome of the litigation in the High Court. We expect a judgement to be handed down in early August and the Board remains confident that Amrac will achieve a satisfactory outcome.

Our Leisure business has been adversely impacted by the Amrac litigation and is being impacted by the management time required by the separation of the Hospitality business following its sale to Torex. Once these have been satisfactorily resolved, we believe that we can return the Leisure business to profitable growth and, over time, regain the momentum that the business has lost.

As a Group we look to restrict our discretionary spend and minimise Group overheads and as a result the sale of the Hospitality business has necessitated a reduction in overheads. 

I believe that the completion of the separation process related to the sale of the Hospitality business and a positive outcome in respect of Amalgamated Racing's litigation will leave the Group well placed to deliver value for all of its stakeholders.

Peter Bertram

Chairman

30th July 2008

ALPHAMERIC PLC

Condensed consolidated income statement

For the six months ended 31 May 2008

The Group has no recognised income or expenses other than the income and expenses above and therefore no separate statement of recognised income and expense has been presented.

ALPHAMERIC PLC

Condensed consolidated balance sheet

As at 31 May 2008