Tatts : Expanded arrangements with Jumbo

12 May 2017

Expanded arrangements with Jumbo Interactive Limited

As announced by Jumbo Interactive Limited (Jumbo), Tatts Group Limited (Tatts) has expanded its decade-long commercial relationship with Jumbo with a 5-year extension and expansion of Tatts' existing lottery reseller agreements with Jumbo. As part of these non-exclusive arrangements, Tatts has also agreed to subscribe for a 15% shareholding in Jumbo.

The key aspects of the new arrangements are as follows:

1. All current reseller agreements with Jumbo for lottery sales (New South Wales, Victoria, South Australia, Northern Territory and Fiji) have been extended for five years with further provisions to continue beyond 2022.

2. Tatts has agreed to provide an expanded product portfolio to include the popular "Set for Life" game.

3. Tatts has purchased 6,609,686 newly issued fully paid ordinary shares in Jumbo (giving Tatts a 15% shareholding) at $2.37 per share.

4. Tatts will also be granted a 12-month option to acquire a further 3,474,492 ordinary shares in Jumbo at a $2.37 strike price. This option issue is subject to shareholder approval and Jumbo will convene a shareholder meeting for this purpose within the next 3 months.

5. The reseller agreements include termination rights permitting Tatts to terminate each of the reseller agreements in the event that (among other things): Jumbo (without prior consent) enters into certain distribution arrangements with a competitor of Tatts; there is a change in control in Jumbo; or a competitor of Tatts acquires voting power of 10% or more in Jumbo.

6. Tatts has been invited by Jumbo to nominate a representative to join its Board of Directors as a non-executive director. Tatts does not presently intend to take up this invitation, however the offer will remain available to Tatts whilst it retains at least a 10% shareholding interest in Jumbo.

These new arrangements strengthen the long standing commercial relationship between Tatts and Jumbo.

Media enquiries please contact:	Analysts and institutions please contact:
Carolyn Prendergast Head of Corporate Communications Mob: [phone] E: [e-mail]	Giovanni Rizzo Head of Investor Relations Ph: [phone] Mob: [phone] E: [e-mail]

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