Arena Leisure PLC
07 July 2005



7 July 2005

                               Arena Leisure Plc

            Outcome of Planning Inquiry for Wolverhampton Racecourse

Arena Leisure Plc ('Arena' or 'the Company') has been notified by The Office of
the Deputy Prime Minister (ODPM), that its regeneration proposals for the
development of an integrated sports, leisure and gaming complex at its Dunstall
Park, Wolverhampton, racecourse have been refused planning permission.

The decision was made following a planning inquiry in 2004 after the original
planning application had received the support of Wolverhampton City Council.

The Secretary of State and Inspector agreed with the arguments put forward
regarding the 'holistic and integrated approach' for the development and 'the
significant economic and employment benefits for the region and the local area
arising from this proposal'. However, the Secretary of State and Inspector
considered that the proposals conflict with the 'openness of the (Green Belt)
area'.

Wolverhampton City Council's draft Unitary Development Plan (currently out for
consultation), which has been progressing independently of our planning
application, proposes the removal of the racecourse from the Green Belt. The
report from the Government inspector on the changes to the Green Belt status of
Dunstall Park and other locations is anticipated to be received by Wolverhampton
Council on 19 August 2005. Arena will continue to work with local stakeholders
and expects to re-submit its scheme for approval once the outcome of that
process is known.

Arena is looking closely at the decision with its advisers, and will continue to
progress the proposals.

Ian Penrose, Chief Executive of Arena, said:

'This decision from the Secretary of State has come as a surprise to the
Company. The proposals have the support of the Council, the Chamber of Commerce
and Black Country Tourism, all representing local stakeholders, because of the
hundreds of jobs that would be created and the boost to the local economy that
this will bring. It is extremely disappointing that the Secretary of State has
stepped in and over-ruled local stakeholders and their elected representatives'

'Yesterday was a great day for British sport with the news that the 2012 Olympic
Games will be coming to London, bringing a long-lasting regeneration legacy to
London's East End. It is disappointing that this decision does not support the
regeneration benefits of a racecourse in the Black Country'.

'We will not give up and we are reviewing our plans, together with our
professional advisers, to address the Green Belt and 'openness' issue. We will
continue to work closely with the Council, local businesses and people so that
we can all achieve the regeneration benefits of our proposals and improve sports
and leisure facilities in Wolverhampton.'

                                    - ends -

For further information, please contact:

Arena Leisure Plc
Ian Penrose, Chief Executive         020 7495 2277

Bell Pottinger Corporate & Financial 020 7861 3232
David Rydell                         07798646021
Paddy Blewer                         07765250857




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