The Thoroughbred Breeders' Association (TBA) today announced that it hopes
to become a member of the fledgling Horsemens' Group, a body that already
has the backing of the Racehorse Owners' Association and National Trainers'
Federation.

Philip Freedman, the TBA's chairman, made the announcement at his
Association's Annual General Meeting in London today.

"I am delighted to be able to report that today the council of this
Association has agreed, subject to changes to the shareholders' agreement,
to become a member of the Horsemens' Group," Freedman told the AGM.

"While I am sure that many members will have shared the Council's concerns
with both the constitution of the Group, together with the ambitions of its
joint organisation with the racecourses which at first sight could limit
the scope for the central governing authority that we have always felt to
be essential for the future health of the industry, we believe that the
principal financial concerns for the Association - namely future funding
for the Breeders' Prize and Owners' Premium Schemes, together with
continued funding of veterinary research - have been met.

"Meanwhile the race-planning issues, and consequences for the horse
population which may arise in the future will be better faced by our
involvement than if we are left sitting on the sidelines."

He continued: "It remains to be seen whether or not the outcome of the most
recent court decision on the BHB's abuse of its monopoly position as the
supplier of data will threaten the viability of this proposal, but the
benefits of both the horsemen' joining together, and then agreeing with the
racecourses on the creation of prize money contract are prizes worth
fighting for."

Freedman also went on to call for an industry review to be led by the Levy
Board, into funding towards areas veterinary research.

"Veterinary funding is likely to become an even more contentious subject in
2006, not least due to the much publicised financial problems at the Animal
Health Trust.

"Given both the scale of the industry's expenditure in this area - with
ourselves spending over £200,000 annually historically through the Equine
Fertility Unity and the AHT, but in the future through the Genome Project
and support alongside the Levy Board for specific projects - the ROA
contributing in excess of £270,000 annually to the AHT's diagnostic
services, and the Levy Board's contribution to advancing equine veterinary
science and research exceeding £1.7 million, and its importance, surely the
time has come for a fundamental review of how much we pay, how we
contribute, and where the money is going to ensure that it is being
targeted most efficiently.

"That is not to say we should use this as an excuse to try and cut the
amount we are spending in this area - indeed we may well find that industry
as a whole and breeders in particular, need to be spending more - but that
it is time that the whole industry, including both the bodies that fund the
work together with their veterinary advisers, and the recipients of those
funds, agree on a set of priorities should be funded and how their
implementation should be most efficiently managed.

"Given the industry's present governance structure and funding, the Levy
Board is the only body capable of leading this initiative and I am pleased
to hear that they are likely to be addressing this topic during their
strategy review, as we would certainly endorse their chairman's view that
the time has come for a holistic approach to this issue."

Freedman also announced that the Racehorse Owners' Association had given
its support for an enhanced Owners' Premium Scheme, set to be twice as big
as the Breeders' Prize Scheme in the longer term. He added that the ROA
"will also back the retention of funding for the Breeders' Prize Scheme
based on the percentage of the overall prize money pool which it represents
in the final full year of Levy Board funding."

He added that with the British Horseracing Board reducing its marketing
spend in 2006, he envisaged that the TBA was anticipating meeting much of
the expenditure on promoting British bloodstock.

"In response to its well-publicised financial problems, the BHB has already
decided to cut back on its marketing budget in 2006, and increasingly
target its spending on areas which were seen to benefit the sport as a
whole rather than specific areas of it, such as promoting British
bloodstock.

"I do not need to tell you how this approach contrasts with that in
Ireland, where the well-funded ITM, to which all those of us who foal mares
in Ireland are compelled by statute to contribute, and if we are to try and
promote British bloodstock it is likely to be this Association which has to
bear the brunt of that cost."

For further information, please contact Louise Kemble, the TBA's Chief
Executive, on 01638 661321


STRICTLY EMBARGOED UNTIL 3.30pm TUESDAY, JANUARY 10, 2006

Speech by Philip Freedman, Chairman of the Thoroughbred Breeders'
Association, to the organisation's annual general meeting which starts at
2.30pm in  the Chartwell Suite of the Hyatt Regency London Churchill Hotel,
Portman Square, London W1, on Tuesday, January 10.

Good afternoon Ladies and Gentleman; once again I am very grateful that we
have a most distinguished guest speaker who will be addressing the Future
Funding of Racing, which remains as uncertain as ever. Lord Donoughue has a
long record of assisting the industry - perhaps he is best known for the
Commission which in his name reported on the labour issues facing the
racing and breeding industries but for us his greatest contribution was in
his work on the VAT scheme, not only in securing its retention when it was
last reviewed by Customs and Excise, but, also for ensuring cross-party
support for its introduction in 1993, so that it has never been a party
political issue. As we await the outcome of the current review, we should
not forget that its retention is as important as any of the financial
issues facing us.

In view of the endorsement which the second stage of his report has given
to the creation of the Horsemen's Group and the role which it is envisaged
that it, along with representatives of the racecourses, will play in the
future of the industry, I am delighted to be able to report that today the
Council of this Association has agreed, subject to changes to the
shareholders' agreement, to become a member of the Horsemen's Group.

While I am sure that many members will have shared the Council's concerns
with both the constitution of this Group, together with the ambitions of
its joint organisation with the Racecourses which at first sight could
limit the scope for the strong central governing authority which we have
always felt to be essential for the future health of the industry, we
believe that the principal financial concerns of this Association, namely
future funding for the Breeders' Prize and Owners' Premium Schemes,
together with continued funding of veterinary research, have been met,
while the Race Planning issues, and consequences for the horse population,
which may arise in the future, will be better faced by our involvement than
if we are left sitting on the sidelines.

It remains to be seen whether or not the outcome of the most recent court
decision on the BHB's abuse of its monopoly position as the supplier of
data will threaten the viability of this proposal, but the benefits of both
the "horsemen" joining together, and then agreeing with racecourses on the
creation of a prize money contract are prizes worth fighting for.

And I am particularly pleased to be able to announce that, following
discussions with the ROA, we have not only received their support for an
enhanced Owners' Premium Scheme, which it is eventually envisaged will be
twice as large as the Breeders' Prize Scheme, but that they will also
support the retention of funding for the Breeders' Prize Scheme based on
the percentage of the overall prize money pool which it represents in the
final full year of Levy Board funding.

I hope that this, together with the changes which we have made in the
Breeders' Prize Scheme for 2006 which will see significantly enhanced
premiums paid to middle distance horses and stayers, as well as
considerably bigger payments to fillies, as part of the BHB and Levy
Board's desire to support both the quality and the diversity of the breed,
will be enough to ensure that Breeders' Prizes are taken off the political
agenda, and that the level of percentage payments which will be made in
2006 can be continued long into the future. Given the traditional hostility
of the rest of the industry to Breeders' Prizes, which have only survived
thanks to the personal support of the current Chairman of the Levy Board
and his predecessor, who were aware of the strength of feeling of breeders
on this issue, and the obvious threat they face when the Levy Board no
longer acts as the industry's paymaster, this is as good an outcome as we
could ever have hoped to achieve.

Whatever Lord Donoughue may say later today about the future of the Levy
Board, the Breeding Industry owes it a great deal, and never more so than
at the present time. When I spoke to you last year, the dire consequences
of the William Hill case on the finances of the BHB threatened the Owners'
Premium Scheme as well as funding for the Equine Fertility Unit and the BHB
Genome project, all of which were to be financed by the BHB. That all of
these have survived is due to the Levy Board taking on their funding, and
while the latter two projects benefited from particular support from the
DCMS, with the Minister specifying their continued funding as part of the
extension of the life of the Levy Board, the provision of funds for Owners'
Premiums, albeit on a much more modest basis than was envisaged when they
were first introduced, could not have happened without Levy Board support.

Veterinary funding is likely to become an even more contentious subject in
2006, not least due to the much publicised financial problems at the Animal
Health Trust. Given both the scale of the industry's expenditure in this
area, with ourselves spending over £200,000, annually historically through
the EFU and the AHT, but in the future through the Genome Project and
support alongside the Levy Board for specific projects, the ROA
contributing in excess of £270,000 annually to the AHT's diagnostic
services, and the Levy Board's contribution to advancing equine veterinary
science and research exceeding £1,700,000, and its importance, surely the
time has come for a fundamental review of how much we pay, how we
contribute, and where the money is going to ensure that it is being
targeted most efficiently.

That is not to say we should use this as an excuse to try and cut the
amount we are spending in this area - indeed we may well find that the
industry as a whole and breeders in particular, need to be spending more -
but that it is time that the whole industry, including both the bodies that
fund the work together with their veterinary advisers, and the recipients
of those funds, agree on a set of priorities, and both how these agreed
priorities should be funded and how their implementation should be most
efficiently managed.

Given the industry's present governance structure and funding, the Levy
Board is the only body capable of leading this initiative and I am pleased
to hear that they are likely to be addressing this topic during their
strategy review, as we would certainly endorse their Chairman's view that
the time has come for a holistic approach to this issue.

Already this more proactive stance is showing through in their approach to
the funding of the EFU, where the Board have advised that renewal of the
grant in October 2006 will be dependent on the TBA and the EFU addressing
the Unit's financial situation, on the addressing the succession on Twink's
retirement and exploring the possibility of a future link between it and an
academic institution.

In 2005 the Association lost two supporters who, over the years, had done
much to support the interest of racing and breeding at Westminster in Robin
Cook and Sir Stephen Hastings. I had the privilege and pleasure of serving
on the Council with Stephen and it was he who first encouraged the
Association to use professional political lobbyists to handle the VAT issue
at that time. Other notable members of the Association who will be greatly
missed include Christopher Weatherby, who began the transformation of the
family firm from its traditional role as the Jockey Club Secretariat to the
dynamic business it is today, and Keith Freeman, one of a small band of
bloodstock agents to have purchased a Derby winner.

Last week we were shocked and saddened to learn of the death of Sheikh
Maktoum Al Maktoum. A Vice-President of the TBA, he and his family's
contribution to racing and breeding in Britain, and indeed around the
world, has been immense. Their investment in bloodstock, much of which has
been raced here prior to being retired to stand as stallions or be retained
as broodmares here has transformed the quality of British bloodstock, so
that once again it can be said that British racing and breeding are as good
as can be found anywhere in the world, reversing a long period of decline.
His Gainsborough Stud is also of course the very generous sponsor of
tonight's awards dinner.

The unexpectedly buoyant sales environment is likely to have an equally
positive impact on the Association's finances, and we have now built up our
reserves to somewhere near the levels recommended by the Charity
Commissioners. However, that has only been achieved because of the
fantastic response to another brilliantly organised charity raceday at
Newbury, for which we once again owe a huge debt to Fiona Marner. More
significantly, there are likely to be increasing calls on our resources in
2006, particularly in the area of veterinary funding, of which I have
already spoken, on bloodstock marketing, as well as on Stud Staff training
and recruitment.

In response to its well publicised financial problems, the BHB had already
decided to cut back on its marketing budget in 2006, and increasingly
target its spending on areas which were seen to benefit the sport as a
whole rather than specific areas of it, such as promoting British
bloodstock. I do not need to tell you how this approach contrasts with that
in Ireland, where the well funded ITM, to which all those of us who foal
mares in Ireland are compelled by statute to contribute, and if we are to
try and promote British bloodstock it is likely to be this Association
which has to bear the brunt of that cost.

While the Thoroughbred Owner and Breeder Magazine goes from strength to
strength, both in terms of editorial quality and financial returns, which
has led to the provision of a magazine to our members which will cost us
considerably less than was the case in the recent past, our finances still
depend on those breeders who choose to contribute to the Sales Levy. In the
past a number of breeders who were not supporters of the EFU used that as
an excuse not to contribute to the Association's finances, but now that the
Levy Board is to provide the Unit's core funding I would urge them now to
reassess their position and start making a contribution to the organization
which is their voice with both the racing authorities and in the wider
political sphere.

We are fortunate to have such an outstanding team in Stanstead House
working on behalf of all breeders, and we not only need to provide them
with the necessary resources to do their job, but should also show them
that they have the whole industry behind them.

But the contribution I would ask breeders to make to their Association is
not only financial; the hundred or so of you who regularly attend the AGM
represent less than five percent of our membership. That you have made the
effort to attend is testimony to the importance you place on the work we
do, and I would particularly ask you to identify colleagues in the industry
who might have the time and enthusiasm to serve on either the Council or
the National Hunt Committee, or to be a regional representative. I am
delighted by the changes we have already made to the rules which should
make it easier for candidates to get the required level of nominations
needed for them to stand for the Council, but we still need the candidates
themselves to come forward.

Although it was disappointing that no candidate could be found to join the
Council in the 2005 elections, our only departing member, Willie Morgan,
would in any event have been an impossible act to follow. As well as
serving as Vice Chairman for the past three years, during which time he has
always been a source of good advice and on occasion objective criticism in
private, while always supporting whatever position the Council ultimately
decided on in public. Specific areas in which he has been involved have
included political lobbying, National Hunt and of course race planning, in
which he was closely involved in our efforts to improve the lot of fillies,
which, at least for those of pattern class have proved so successful. I am
delighted that he will remain our representative on the Race Planning
Committee, and we could not have a better advocate at a time when
maintaining the quality of the race program as well as the opportunities
for fillies is likely to be tested by commercial pressures as never before.

I am very fortunate to have such an able successor in Richard Lancaster.
Richard brings expertise in different, but no less important areas, and at
a time when staff training and the funding of veterinary research are
likely to be areas of particular concern, his involvement with both Ann
Mallallieu's Stable and Stud Staff Steering Group, as well as his detailed
knowledge of the workings of the Animal Health Trust are likely to prove
invaluable to Council.

2006 will mark the retirement of our President David Oldrey. If I was to
detail all that he has done for racing and breeding over his long and
distinguished career we would not get the room cleared in time for this
evening's dinner, but his contribution to this Association alone has been
immense. Of course his expertise on financial and race planning matters
have been invaluable to the Council, but so too has his experience of the
corridors of power in racing politics. As well as chairing our review of
Breeders' Prizes, he presented it to the Levy Board, and his successor, who
will be elected in May, will have a hard act to follow.

The sales in 2005 confounded most breeders' expectations, but can we expect
similar welcome advances in the future? I believe that we might be able to,
for worldwide the demand for bloodstock, and in particular top quality
bloodstock, has been increasing. However uncertain the environment for our
domestic racing, the international environment is much more benign. Indeed,
with the real prospect of the advance of all-weather racing in North
America at the expense of their traditional dirt surface, there is every
possibility that demand for British bloodstock will continue to expand, as
owners and indeed breeders in other countries recognise that the product
which we have been seeking to perfect for over two hundred years, remains
the best in the world.

Nevertheless, in the longer term, we need our racing industry to be as
healthy as our breeding industry, for neither can ultimately flourish in
isolation. For that reason alone we should be grateful for all the efforts
which our guest today, Lord Donoughue, has made on behalf of racing, and
wish him well in his future endeavours. I will now hand over to him, but
will be delighted to try and answer any questions you might have at the
conclusion of his speech.

STRICTLY EMBARGOED UNTIL 3.30pm TUESDAY, JANUARY 10, 2006

The speech of TBA President David Oldrey and details of the two TBA special
award winners will be e-mailed out shortly on an embargoed basis