Summary

- Continued progress with three year strategy to turnaround financial, business and playing performance

- Success in 2008-2009 season led to automatic promotion back to Championship

- Reduced losses by 57% (£6 million in 2009; £14 million in 2008); careful management of expected falling turnover due to lower League One broadcasting revenues

- Significant reduction of Club debt

- Post FY2009, £10 million injection of new funds by Chairman.

Chairman's Statement:
Leicester City Football club Ltd today announced its financial results for the year ending 31^st May 2009.

These results reflect the 2008-09 campaign in which the club was playing in the third tier of English football for the first time in its history.

It went on to become the League one Champions and gained automatic promotion back to championship football for 2009-10 season.

The announcement comes as the club completes a very successful year in the championship for 2009-10 season ending fifth in the league and just missing out in a tense semi final play-off.

At a time of immense business pressure and global economic crisis we were encouraged the efforts and commitment to reduce club debt has been positive.

Operating in league one the club recorded losses in the year to 31^st May 2009 of £6m, a significant improvement on the losses of £14m in the previous year (2007-08)

Turnover reduced to £10.9m (2007/08 £14.1m) as a result of the lower income from broadcasting revenues and a significant impact on commercial revenues across all of its business activities.

Match receipts fell in line with reduced average league attendances of 20,250 (2007/08 23,500) of which season ticket sales (including half season tickets) were 11,600 (2007/08 13,965)

Operational units worked extremely hard during a testing business climate to maintain its revenue base and reduce its operational expenditure in the year.

Total staffing costs fell by £3.3m to £11.2m (2007/08 £14.5m) and an operating savings improvement of £0.8m was achieved.

Curtailing wastage and a fresh impetus to improve the financial position was a clear objective during the 2008/09 season.

A further objective in our turnaround philosophy was clear commitment to establish the right football foundation with sound training and sports science principles.

Under the guidance of our Football Manager Nigel Pearson such an approach is proving successful with promotion in 2009 and a recent fifth place finish.

A balanced meaningful player squad has also increased the market values of players. Our Director of Academy John Rudkin and staff are also on a mission to bring our youth talent to a high level of excellence, with a complimentaryfootball programme that will enhance youth team player opportunities.

Our commitment to adopting good corporate governance and the appropriate financial controls stimulating confidence to grow a profitable football business model will continue as part of the three year strategy.

Our objectives and mission statement is clear: Returning the club to a position of financial and operational stability matched by a sustainable football model that will in turn springboard the club to Premiership status

Leicester City Chairman, Milan Mandaric, said:

"Since coming to Leicester, I have focused on long term planning to return the Club to financial stability and high standards of performance both on and off the pitch.

"We have coped well this financial year in tackling our expenditure in the face of an expected fall in revenue and also the economic crisis. We have reduced the Club's losses and significantly reduced our debt position.

"In addition we have put in place governance and procedures to support the progressive development of our squad, its training and management ethos as well as a framework to grow a profitable football business model.

"Our promotion to the Championship at the end of the 2008/ 2009 season underlines the confidence we have for the excellent prospects of the Club and our overall aim to achieve Premiership status."

"I am mindful of the demanding nature of football and its finances and am fully committed to standing by this club."