Irish Prime Minister Launches Paddy Power PMU Partnership

Signifying the importance of the agreement to both Paddy Power and the local economy, the Prime Minister of Ireland, Brian Cowen, today officially launched a new partnership between Irish bookmaker Paddy Power and PMU of France, Europe's largest betting organisation.

With its first step into the online gaming B2B arena, Paddy Power has secured a five year agreement with one of the most significant sports betting providers in the world with an annual turnover exceeding €9 billion.

The partnership will see PMU outsource its online sports betting business to Paddy Power for a five year period beginning 2010, with the creation of up to 250 high end jobs at Paddy Power's headquarters in Tallaght over the term of the agreement.

In unveiling the partnership, Irish Prime Minister Brian Cowen said: "Today's announcement shows that the smart economy is not a pipedream, it is happening all around us. Paddy Power is a prime example of a company with a talent for innovation that keeps on searching for new opportunities.

"The decision of a world class organisation like PMU to team up with Paddy Power is testament to Paddy Power's own world class expertise in e-commerce, product development and risk management. I want to pay tribute to the ambition, energy and professionalism of the Paddy Power management team and staff.

"I am delighted to officially launch the PMU partnership and hope to see Paddy Power continue to create many more smart economy jobs for Tallaght and for this country."

Philippe Germond, Chairman and CEO of PMU, said his company and Paddy Power share a similar set of values and culture, and highlighted the Irish bookmakers adherence to national laws, a thinly veiled criticism of online gaming operators who have entered the French gaming market prior to its liberalisation early next year.

"This partnership is going to enable PMU to offer sporting bets online under its own brand and retain direct management of its client database. Paddy Power will provide us with its expertise in sports betting," said Germond.

"We are particularly happy to be associated with a company whose culture and values are close to our own. Paddy Power is a very competitive company with strong management and which only operates in markets where it is authorised to do so. Through this partnership PMU is given the means to be ready for the opening of the online betting market in France next year," he said.

Paddy Power Chief Executive, Patrick Kennedy, described the agreement as the ideal start for the company's B2B ambitions.

"This deal with PMU, which is a long term relationship with a high quality partner, is the ideal start for our new business to business operation," he said. "We continue to look for other quality opportunities in international markets, capitalising on our investment in people, expertise and particularly in our proprietary pricing and risk management technology. Our partnership with PMU further confirms our ability to build a leading international business out of Dublin, sustaining and creating Irish jobs."

Shares in Paddy Power plc (Co. Profile) (LSE:PAP) will commence trading in London this morning at €22.28 per share.