Here we go at last. Using Warner’s distribution gives Sci some advantages of scale. However they are still probably not beig enough for AAA console game risk. And who is going to do the global marketing? So this looks like an interim position prior to Warners taking full control. Maybe not this year, but one day.

Placing and Open Offer

RNS Number:1083T
SCI Entertainment Group PLC
25 April 2008

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION IN WHOLE OR IN PART IN OR INTO THE
UNITED STATES, CANADA, JAPAN, AUSTRALIA OR THE REPUBLIC OF SOUTH AFRICA

(for immediate release at 7 am)

25 April 2008

SCi Entertainment Group plc

PLACING AND OPEN OFFER OF 171,605,424 NEW SHARES AT 35 PENCE PER NEW SHARE,

STRATEGIC PARTNERSHIP WITH WARNER BROS AND ARRANGEMENT OF NEW BANKING FACILITIES

INTERIM MANAGEMENT STATEMENT

Highlights:

* Raising £60m through a fully underwritten placing and open offer of
171,605,424 New Shares

* Strategic distribution agreement with Warner Bros. Home Entertainment Inc. for
the US, Canada and Mexico, to drive growth in the North American market,
additionally Warner Bros will subscribe for up to £15m New Shares

* Current trading is in line with expectations and the Company is on track to
deliver cost savings of £14m from its rationalisation programme at a cost of
£7m, as announced in February

* Following completion of the fund raising the company will have substantial
cash balances in addition to its new committed £25 million debt facility.

* Progress with Tomb Raider: Underworld remains encouraging and the game is
scheduled for worldwide release before Christmas 2008

Phil Rogers, Chief Executive Officer, SCI Entertainment Group said:

“Today we have significantly strengthened our relationship with Warner Bros. one
of the world’s largest media groups, to create an exciting strategic
partnership, giving us increased scale in the North American market, to the
benefit of all our major franchises.

“The new financing puts us in a clear position to deliver on the strategic
business plan which we announced in February with focus on cornerstone studios
and core franchises, delivering high-quality, world class games.”

Kevin Tsujihara, President, Warner Bros. Home Entertainment Group, added:

“This investment underscores Warner Bros’ commitment to becoming a major
presence in the video game business, With SCi’s new management team in place
along with their track record of rich franchises like Tomb Raider, Hitman and
Deus Ex we believe we have formed an exciting partnership and a powerful engine
for growth.”