To Acquire South Australian TAB

Document date:  Wed 15 Aug 2001
Published:  Wed 15 Aug 2001 00:00:00
Document No:  141936
Document part:  A
Market Flag:  Y
Classification: 

TAB QUEENSLAND LIMITED                        2001-08-15  ASX-SIGNAL-G

HOMEX - Brisbane                                                      

+++++++++++++++++++++++++
TAB Queensland Limited (TABQ) is to acquire the South Australian TAB
(SATAB) in January 2002. The sale of the South Australian business
was finalised when agreements were executed between TABQ, the South
Australian Government, and the South Australian Racing Industry
today. The sale is conditional upon ACCC and other regulatory
approvals being obtained.

TABQ will receive a 99 year off-course totalisator licence, with a 15
year exclusivity. The new business will also be able to conduct fixed
price sports betting under similar arrangements.

The price paid to the Government is $43.5 million. A wagering tax of
6% plus GST will be applied to wagering revenue. South Australian
Racing will receive 39% of the commission revenue from race wagering.
An arrangement between TABQ and the Government will ensure that SA
Racing receives $42 million indexed over three years commencing July
2001.

SATAB generates betting sales in excess of $600 million annually from
380 retail outlets throughout South Australia, and a telephone
betting centre in Adelaide. SATAB's betting pools will be joined with
the Queensland and Northern Territory pools in January, to produce
annual sales in excess of $2.2 billion. This will represent 23% of
the national off-course totalisator market. SATAB is expected to
generate annual revenues of near $100 million, and is expected to be
earnings per share positive within the first year of operation.

The new business will be operated through a subsidiary to be named,
'SATAB Pty Ltd'. The new company will be urging the vast majority of
staff to continue their employment with SATAB.

The acquisition will be funded from TABQ's existing cash holdings,
and debt.

For further comment, please contact Dick McIlwain, Managing Director
and Chief Executive, TAB Queensland Limited - Ph: 0408 714 742.

R M Cooke
GENERAL COUNSEL AND STRATEGIST

                                                                                                                                                                                                                                                                                                                                                                        1