France and Russia sign historic agreement

June 18, 2015 – An historic agreement (four-point memorandum of understanding) was reached today in St. Petersburg whereby the FR PMU (Pari-Mutuel Urbain) and PMC (Carrus Technology Group) will join with the Pari-Mutuel Association of Russia and the Commonwealth Trotting Association to re-develop the Russian horse racing and breeding industry. The agreement also enables FR PMU to export its product into Russian outlets (tracks and sales centers) that will be enhanced with PMC technology.

The four-points to the agreement are listed below along with a summary of the magnitude of the Russian market and industry:

1. A founder protocol between the racing authorities. France supports Russia in its development plan and the two countries together create a Franco-Russian Committee.

2. An agreement between the PMU and the Pari Mutuel Association of Russia (Dimitri Zaitsev being the CEO).

3. An agreement between PMC and the federation races Russia, Commonwealth Trotting Association (Nikolai Isakov, president). PMC will provide its logistic and technical know-how,  to equip racetracks and Russian outlets. 1st deadline the weekend of September 12 where he will be the President's Award at the Moscow Hippodrome and PMC counters commissioned.

4. An agreement between Trot and Gazprom Media Holding. The HorseWorld chain will broadcast programs on either the horse or the races. Thus, the channel will broadcast Sunday's races at Vincennes.

Market statistics applicable to the agreement:

– 146.5 million inhabitants in Russia in 2014

– 24 – the number of racetracks covered by this Treaty, the main one being Moscow. In total there are 30 in Russia.

– €300 average allocation distributed trot in Russia to trotting races

– 727.6 million euros the amount of the stakes registered by the PMU in 2014 via its international mass

– 1200 Horses – the capacity of the Moscow training center, today there are 600

FR horse racing officials offered the following comments (translated):

Dominique de Bellaigue, president of Trot

"I am personally very pleased to see materialize these agreements, the discussions that I have ceased to have horse with Russian authorities to ensure the development of the equine industry in this country. Russia is a great country horse and no doubt the deployment of a system on our model is the best asset for the development of Russian horse races at a level comparable to that of larger countries and thus a quality breeding. I do not forget that trotter "Orlov" was in the past one of the best trotters in the world, through this development plan will find, I am sure, its place among the elite. Our efforts are to succeed! I ' have confidence in these accords will benefit both our countries. "

Pierre-Antoine Carrus, General Manager of PMC:

"This is a new international growth that shows the expertise of the French horse industry in all areas. When the whole of the French horse industry is united, there is no equivalent in the world, by the Japan Racing Association, but it does not export its model. Carrus Group Technology is a strong point, and this leadership is part of the whole as well as the Trot, France Galop and PMU. "

This historic agreement represents continued international development and expansion of the successful FR and PMU model. Russian and France signed a Trotting Production Agreement in 2007.

Thomas H. Hicks