EID Eidos

RNS Number:7515K
Eidos PLC
07 April 2005



For Immediate Release

> 7 April 2005
> Eidos plc
> Offer Update : Unanimous recommendation of SCi Offer

Further to the announcement made on 1 April 2005, the Board of Eidos plc ("the
Board") has undertaken further discussions and due diligence with both the Board
of SCi Entertainment Group plc ("SCi") in relation to SCi's share offer of one
SCi share per six Eidos shares (the "SCi Offer") and Elevation Partners, L.P.
("Elevation") in relation to Elevation's cash offer of 50 pence per Eidos share
(the "Elevation Offer").

In the light of the recent movement in the SCi share price, and in the absence
of an increased cash offer from Elevation, the Board recognises that whilst
there are certain key risks for Eidos shareholders in accepting the SCi Offer
(as described more fully below) the current implied value of the SCi Offer of
72.8 pence per Eidos share based on the closing price of SCi shares on 6 April
2005 represents a significant premium to Elevation's Offer.

The Board has also noted the level of support for the SCi Offer evidenced by
shareholders representing approximately 41 per cent. of Eidos' share capital who
have irrevocably committed to accept the SCi Offer.

Taking these factors into consideration, the Board, who has been so advised by
UBS Investment Bank ("UBS"), its financial adviser, consider that the terms of
the SCi Offer are fair and reasonable. Accordingly, the Board unanimously
recommends to Eidos shareholders that they accept the SCi Offer. In providing
advice to the Board, UBS has taken into account the commercial assessments of
the Board.

As referred to above, the Board and UBS consider that Eidos shareholders, in
assessing whether or not to accept the SCi offer, should have regard to a number
of key issues which will need to be addressed by the Board of SCi, including:

   * the requirement for scale to compete effectively in the computer games
     industry - on the basis that the combination of Eidos and SCi will not
     result in a significantly larger business;
   * the successful integration of the Eidos and SCi businesses - recognising
     that Eidos is much larger than SCi, operates internationally and pursues a
     different approach to the development of its games; and
   * the retention and motivation of key employees of the Eidos business.

Shareholders who do not wish to be exposed to such risks, or the potential
volatility in the SCi share price (especially in the light of SCi's recent
strong share price performance), may wish to consider selling their shares for
cash in the market.

As a consequence of the foregoing the Board has withdrawn its earlier
recommendation of the Elevation Offer.



The Directors of Eidos accept responsibility for the information contained in
this announcement save that the only responsibility accepted by them in respect
of information relating to SCi and the SCi Offer (which has been compiled from
public sources) is to ensure that such information has been correctly and fairly
reproduced and presented. Subject as aforesaid, to the best of the knowledge and
belief of the Directors of Eidos (who have taken all reasonable care to ensure
that such is the case), the information contained in this announcement for which
they accept responsibility is in accordance with the facts and does not omit
anything likely to affect the import of such information.

UBS Investment Bank is acting exclusively for Eidos plc and no-one else in
connection with this transaction and will not be responsible to anyone other
than Eidos plc for providing the protections afforded to its clients or for
providing advice in relation to the transaction, or the contents of this
announcement

Contact:

Eidos plc                         +44 (0) 20 8636 3000
John van Kuffeler, Chairman
Mike McGarvey, CEO

Brunswick (UK)                    +44 (0) 20 7404 5959
Jonathan Glass
Wendel Verbeek

Brunswick (NY)                    +1 212 333 3810
Nina Devlin

UBS Investment Bank               +44 (0) 20 7567 8000
(financial adviser to Eidos)
Adrian Haxby
Benjamin Robertson



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

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