RNS Number:5446L
SCI Entertainment Group PLC
10 January 2008


                                 Market Update

Update on Bid Talks

On 27 September 2007 the Company announced that it was in discussions with a
number of interested parties with respect to a potential offer. Discussions have
been ongoing since that announcement with various interested parties but the
Company has not received a formal offer within the timeframe requested.

The Company is announcing today that the Board no longer believes that a sale of
the Company for its full value is likely to be achieved at the current time and
has reached the view that it is not in the Company's or its Shareholders'
interests to prolong these discussions further and therefore offer related
discussions have been terminated today. However, as a result of these
discussions certain commercial and strategic opportunities have emerged which
the Company is continuing to explore and progress.


Additional Formats and Release Schedule

Following a review of our 2008 platform and product line up, we have decided to
move the release date of 4 titles into the 4th calendar quarter. The most
significant of these titles is the next Tomb Raider game, Tomb Raider:
Underworld, which we are now scheduling to launch on 6 platforms (PC, PS3, Xbox
360, NDS, Wii and PS2) simultaneously during the Christmas season as opposed to
the previously planned 3 platforms (PC, PS3 and Xbox 360) in June. As a result
of these changes the Board now expects that the Company will make an operating
loss in FY08, but the Board believes that these simultaneous multi-platform
launches in the key buying period, optimises the value that these franchises can
deliver to the Company over the long term.

The product slate for the remainder of FY08 comprises 10 titles over 17
platforms including Conflict: Denied Ops and products targeting the growing
casual market on NDS and Wii platforms, such as the first in our Warner Bros
line-up (including Looney Tunes and Wacky Races) and the next instalment of the
highly successful Pony Friends game.


Working Capital

As part of the decision to make these changes to the platform and release
schedule, the Company has reviewed the impact this may have on its working
capital needs and has identified sources of additional working capital which may
be required.


Trading Update

The Board is pleased with the Company's Christmas trading results and in
particular the performance of Kane and Lynch, which was launched on 13 November
in the US and 23 November in Europe. Indications are that this title has now
sold through over 1 million units at retail since launch. We anticipate a
positive sales trend to continue through the remainder of FY08 and for Kane and
Lynch to firmly establish itself as another key franchise for the Group. As a
guide to the success of this game, sales-to-date in the comparable period have
now exceeded those of the highly acclaimed and successful title Hitman: Blood
Money.

Pony Friends, first launched in May 2007, has also continued to perform well
with life-to-date sell through now exceeding 600,000 units on NDS alone.

Tomb Raider: Anniversary on Wii was launched into the Christmas market and has
also performed well with reorders already made.


SCi Entertainment Group                    020 8636 3000
Jane Cavanagh - CEO
Phil Rogers - CFO


Madano Partnership                         020 7593 4000
Matthew Moth
Mark Way
Graham Moonie


About SCi

SCi Entertainment Group is one of the world's leading publishers and developers
of entertainment software. Its publishing label Eidos has publishing operations
across Europe and the US and a number of high quality development studios
including Crystal Dynamics, Io Interactive, Beautiful Game Studios, Eidos
Studios Hungary, Eidos Studios Sweden, Pivotal Games and Eidos Montreal.

The Group has a valuable portfolio of intellectual property including: Tomb
Raider, Hitman, Deus Ex, Championship Manager, Carmageddon, the Conflict series,
Just Cause and Battlestations: Midway and Kane & Lynch: Dead Men. Titles
currently in development include: Conflict: Denied Ops and Highlander.


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