RNS Number:0373U
Game Group PLC
09 January 2004

9 January 2004



                               The GAME Group Plc

                        Christmas 2003 Trading Statement

  * Record Sales and Profits expected for the fourth consecutive year
  * GAME increases Market Share
  * Strong sales growth at lower average selling prices

The GAME Group Plc ('GAME') announces that sales in its core UK market for the 5
week period ended 3 January 2004 increased by 9%.  Like for like sales were up
5.6% and in the year to date GAME has increased its software unit sales by over
25%*.  Total Group turnover for the 11 months to 3 January 2004 rose by 9% with
like for like sales up 2%.

By contrast, the total UK market for video games and computer software in 2003,
as reported by ChartTrack, declined in value by 1.5%* largely driven by lower
manufacturer prices for console hardware which saw a 15%* drop in value on
similar volumes. Software sales for the market benefited from the ever
increasing installed base with a 15%* increase in volume, delivering record
sales up 7%* in value.  Best selling software for the key Christmas season
included, Need for Speed Underground, Medal of Honor Rising Sun, and FIFA 2004
from Electronic Arts; Simpsons Hit and Run from Vivendi; Tony Hawks Underground
and True Crime: Streets of LA from Activision; the Eye Toy from Sony plus
increasing demand for Dance Mats.

From the outset of the financial year, the strategy for the Group has been to
use its competitive advantages as a specialist to attract new customers, as our
products increase their mass market appeal.  As the leading specialist in an
increasingly challenging market, the Group was able to source a series of strong
Christmas promotions, coupled with our high standards of personal customer
service in the stores.  This, together with our targeted marketing, advertising
campaigns and extensive communication with our customers who hold a GAME Reward
Card (membership now at 4.5m), ensured that once again the Group outperformed
the industry and delivered market share gains in both hardware and software.

The policy pursued through the year by manufacturers of reducing console selling
prices distorts like for like value comparison in the short term.  Console sales
represented approximately a quarter of the total market value and selling prices
were around 20% lower in the fourth quarter compared with the previous year.
However, there is both the medium and longer term benefit from the increased
demand for software prompted by wider hardware ownership and the installed base
for the current generation of hardware formats in the UK having increased in
2003 by 60% to over 10 million**, with Sony's PS2 being the clear market leader
with over 50% of the market to date.

Our European businesses continued their improvement but, as yet, these three
territories represent a small proportion of our activities and are not yet
material to the Group's results.

The Board of GAME also reports:

-       the on-line gaming division is closed with immediate effect.  One-off
        closure costs, which are not expected to be material, will be treated as 
        an exceptional charge.  Future annual savings are forecast to be in the 
        region of #500,000.

-       E.Commerce will still be vigorously pursued on the dedicated GAME.net
        website.  Indeed, online sales in the Christmas period, increased by 
        over 80%.

-       the appointment of a Group Financial Director to succeed Martin Long
        will be announced shortly.

As a result of this successful trading period the Board is confident that the
results for the year to 31 January 2004, for the fourth consecutive year, will
show record sales and profits, which before taxation, goodwill amortisation and
any exceptional charge, will be in line with current market consensus.

Peter Lewis, Chairman of GAME commented:-

            "These are good trading results demonstrating our ability to adapt
quickly and effectively and to win customers in a fast changing retail
environment.  We have improved on our already leading UK market position with an
increase in our market share of more than 1%*.  We now look forward without
complacency to what is likely to be another challenging year."


* source: ChartTrack

** source : ChartTrack (includes PS2/Xbox/Gamecube/GBA/SP)


For further information please contact:

The GAME Group

Martin Long                  CEO Designate                          01344 464085
Lisa Morgan                  Deputy Chief Executive Designate

Financial Dynamics
Charlie Armitstead                                                 020 7831 3113
Nic Bennett


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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