euro adhoc: BETandWIN.com Interactive Entertainment AG / other / BETANDWIN.COM PRESENTS PREVIEW OF PRELIMINARY RESULTS FOR FINANCIAL YEAR NOW ENDED IN THE FORM OF SELECTED KEY FIGURES (E)

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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03.02.2006

BETANDWIN.COM PRESENTS PREVIEW OF PRELIMINARY RESULTS FOR FINANCIAL YEAR NOW
ENDED IN THE FORM OF SELECTED KEY FIGURES

: NOTES ON SELECTED PRELIMINARY KEY FIGURES
This report contains statements about possible future developments that have
been made on the basis of information currently available. These statements
reflect the present opinion of the Executive Board with respect to such future
events, and should not be taken as a guarantee of future performance, since they
entail risks and uncertainties that are difficult to predict. For many different
reasons, actual events or circumstances may differ significantly from the
assumptions made for such statements.
The figures reported here are preliminary, and as yet unaudited, as the
consolidated financial statements as of 31 December 2005 are still under
preparation. There is therefore a possibility that some changes may have to be
made following the audit.

For the sake of better clarity, the selected key figures are pro forma
consolidated and reported at equity. In the full consolidation, all the assets
and liabilities, revenues and expenses of a subsidiary are included in the
consolidated financial statements, and group receivables and liabilities are
eliminated along with intra-group revenues and intermediate profits. During
capital consolidation, any value of the investment exceeding the market value of
its assets less liabilities is reported as goodwill and amortized over the usual
period. In "at equity" consolidation the prorated profit/loss of a subsidiary is
shown in a line of the income statement (profit/loss from investments in
associated companies) after deduction of amortization of the goodwill shown for
the investment and other prorated intermediate profits. This increases or
decreases the value of the investment accordingly. This method of consolidation
- also referred to as single-line consolidation - generally produces the same
consolidated result as full consolidation. Due the use of automated methods of
calculation, rounding differences may occur in the totals of rounded amounts and
percentages.

In order to ensure better comparability with other publicly listed companies,
and in line with internationally established practice, with effect from Q3 2005
turnover from the casino, poker and games sectors has been shown only as net
winnings (betting turnover less customer winnings).

: HIGHLIGHTS
Q4 2005 (SELECTED PRELIMINARY KEY FIGURES PRO FORMA CONSOLIDATED)
• Record quarterly turnover of EUR 380 million, up 170%
• Gross gaming revenues of around EUR 47.7 million, up 145%
• Successful marketing activities: 467,000 active and 185,000 new active
sports betting customers

FINANCIAL YEAR 2005 (SELECTED PRELIMINARY KEY FIGURES PRO FORMA CONSOLIDATED)
• Turnover from sports betting of EUR 1.1 billion, up 187%
• Gross gaming revenues of EUR 144 million in 2005 almost trebled compared
to 2004
• Customer base of 2.1 million, including over 1 million new customer
registrations; activation rate over 50%

ONGAME TRADING UPDATE (SELECTED PRELIMINARY KEY FIGURES)
• FY 2005: Gross gaming revenues of EUR 107,8 million, up 135%
• Q4 2005: 355,300 active and 126,810 new active "real money" players

LEGISLATIVE DEVELOPMENTS
• Germany: Verbal judgement in proceedings instituted by Westlotto
• Italy: Contested Finance Act to be implemented

: DEVELOPMENT OF BUSINESS

Development of business in fourth quarter of 2005: Gaming turnover, gross gaming
revenues, customer acquisition and activation, bets placed

In Q4 betandwin increased gaming turnover from its sports betting and casino
operations, poker and games to EUR 379.9 million, an increase of 170%. Turnover
from sports betting in Q4 2005 came to EUR 361.9 million, up 168%; this
represented an increase of EUR 109.7 million, or 43%, compared to Q3 2005.
Casino operations, poker and games generated turnover (equivalent to gross
gaming revenues) of EUR 18.1 million, EUR 11.6 million of which was attributable
to casino operations (up 140%), EUR 4.0 million to poker (up 780%), and EUR 2.4
million to games (up 410%).

In Q4 2005, gross gaming revenues (total gross gaming revenues from betting
operations, casino, poker and games) totalled EUR 47.7 million, an increase of
145%. In Q4 2005 the company reported gross gaming revenues (betting turnover
less customer winnings) from sports betting of EUR 29.6 million, up 116%. This
was equivalent to a gross winnings margin of 8.2%.

A total of 356,623 new registrations were recorded during the course of Q4 2005,
an increase of 206%. The number of active sports betting customers rose to
467,437 in Q4 2005, up 211%. There was also a significant rise in the number of
new active sports betting customers, to 185,403, up 238%.
The number of bets placed rose to 44,891,345 in Q4 2005. This was equivalent to
an increase of 156%.

Development of business in financial year 2005: Gaming turnover, gross gaming
revenues, customer acquisition and activation, bets placed

Gaming turnover for the financial year 2005 amounted to EUR 1,135.0 million, up
189%. Sports betting generated turnover of EUR 1,085.9 million in FY 2005, an
increase of 187%. In FY 2005 casino operations, poker and games generated
turnover (equivalent to gross gaming revenues) of EUR 49.2 million, EUR 33.8
million of which was attributable to casino operations (up 164%), EUR 9.9
million to poker (first offered to customers at the end of Q3 2004), and EUR 5.5
million to games (up 380%).

In FY 2005, gross gaming revenues (total gross gaming revenues from betting
operations, casino, poker and games) totalled EUR 144.0 million, an increase of
177%. This included revenues generated as a result of free betting or promotion
bonuses designed principally to reactivate already registered customers who had
become inactive, and accounted for around 6% of gross winnings in FY 2005.

In FY 2005 the company reported gross gaming revenues (betting turnover less
customer winnings) from sports betting of EUR 94.8 million, up 152% at a gross
winnings margin of 8.7%.

As of the reporting date of 31 December 2005, the company had nearly 2.1 million
registered users: 1,037,556 new registrations were recorded during the financial
year 2005, an increase of 179%. The successful implementation of the company's
aggressive growth course was clearly reflected in 719,725 active and 544,178 new
active sports betting customers for the financial year 2005 now ended. This was
equivalent to increases of 177% and 201% respectively.
A total of 126,956,260 sports bets was recorded in the financial year 2005, an
increase of 160%.

: INFORMATION ABOUT ONGAME
As reported on 16 December 2005, betandwin is to acquire 100% of the shares of
Ongame e-solutions AB ("Ongame") subject to certain conditions precedent. The
transaction should be concluded in the first four months of the current
financial year as planned, provided the conditions specified in the share
purchase agreement - such as approval by the betandwin Supervisory Board and
successful financing of the purchase price - are met.

According to the share purchase agreement the basis for the total consideration
is defined as gross gaming revenues less prizes and bonuses. One of the closing
conditions was a minimum of EUR 88.2 million of gross gaming revenues less
prizes and bonuses using a predefined EUR/USD exchange rate of 1.1907.

The total consideration payable for 100% of Ongame will be calculated using the
contractually agreed multiple of 5.37 times of Ongame’s gross gaming revenues
less prices and bonuses. Based on preliminary gross gaming revenues less prizes
and bonuses for 2005 of approximately EUR 95 million the total consideration
payable is expected to amount to approximately EUR 510 million; the final
consideration will be determined following the availability of Ongame’s audited
financial statements for 2005.

SELECTED PRELIMINARY KEY FIGURES
Ongame is one of the top three in the online poker industry worldwide. The
company’s business model is based on the one hand on a business-to-consumer
approach ("B2C") with its primary transaction platforms PokerRoom.com,
HoldemPoker.com and EuroPoker.com, and on the other on a business-to-business
("B2B") poker network with the customers of member companies such as
Coral/Eurobet or Betsson.

In Q4 2005 Ongame reported gross gaming revenues of EUR 33.9 million, an
increase of 103%. Of this amount, EUR 31.7 million, or 93.4%, was accounted for
by gross gaming revenues on the B2C sector, and EUR 2.2 million, or 6.6%, on the
B2B sector. For the full financial year 2005 Ongame’s gross gaming revenues
increased by 135% to EUR 107.8 million.

Ongame’s customer base is made up of the company’s own customers on the one
hand, and customers of the Ongame partner network on the other. Ongame had a
total of 355,300 active customers ("real money") in Q4 (247,260 of them the
company’s own customers, and 108,040 network customers). Using the same
definition as betandwin an active customer is a customer who placed at least one
bet in the reporting period.

Of a total of 126,810 new active customers ("real money") in Q4 2005, 67,816
were the company’s own customers; 58,994 new active customers were recorded in
the partner network, predominately deriving from the addition of Coral/Eurobet
during Q4 2005. Ongame had a total of 353,284 new active customers ("real
money") in FY 2005 (238,780 of them the company’s own customers, and 114,504
network customers). A new active customer is defined as a customer being active
the first time within the reporting period.

: LEGISLATIVE DEVELOPMENTS
Germany: verbal judgement in the case of Westlotto vs. BAW International Ltd.
On 1 September 2004, Westlotto, the state games of chance monopoly in
Nordrhein-Westfahlen, instituted legal proceedings against Gibraltar-based BAW
International Ltd., applying for an injunction against BAW International Ltd. to
prevent it from offering and/or advertising games of chance and/or sports
betting on the platform www.betandwin.com in Germany, and to desist from using
the terms Supertoto and Supertoto XXL. In its defence, betandwin dealt
extensively with the Gambelli judgement passed down by the ECJ, and with the
advertising tactics of German betting providers in general and the advertising
behaviour of Westlotto in particular. Westlotto had also instituted similar
proceedings against other providers.

At the first instance, the Regional Court of Cologne passed down its verbal
judgement on 2 February 2006, and its written judgement is expected to be
delivered in the next few days. In its judgement, the Regional Court of Cologne
forbade BAW International Ltd. via its platform www.betandwin.com and all the
other betting providers concerned to offer and/or advertise games of chance
and/or sports betting in Germany, to refrain from using the terms Supertoto and
Supertoto XXL and requested BAW International Ltd. to disclose gaming turnover
achieved in the region of Nordrhein-Westfahlen. betandwin is of the opinion that
the relevant German laws are not in conformity with EU legislation. It therefore
intends to appeal against this judgement, and will go through all the instances
of appeal if necessary. Should betandwin incur any kind of financial loss
whatsoever as a result of this judgement, the company reserves the right to
claim damages from Westlotto.

Verdict of German Federal Constitutional Court probably delayed till April
The verdict of the Federal Constitutional Court dealing with the lawfulness of
the German gaming and betting monopoly will probably only be passed in April.
From betandwin’s point of view, this verdict will be of significance in view of
the fact that, in April 2005, the constitutional court questioned the conformity
of German law with European law, ruling as follows: "However, the more difficult
it becomes to predict criminal liability, the less justification there is for
arguing solely for implementation in the public interest. This may be the case
if the applicability of an act is questionable, for considerations of EU
legislation, for example. In such a situation, in order for legislation to
provide effective safeguards for fundamental rights, it is necessary to specify
concrete risks to the public good over and above criminal liability."

Italy: contested Finance Act to be implemented
Despite significant misgivings at both national and EU level about its
conformity with existing EU legislation, on 23 December 2005 the Italian
parliament approved a law establishing considerable barriers to foreign gaming
providers wishing to access the Italian market. betandwin believes, the law
infringes the fundamental EU right of the freedom of movement of people and
services, and came into force on 1 January 2006 without the EU Commission being
notified as required by Transparency Directive 98/34/EC.

In view of the fact that the Italian government has infringed existing EU
legislation on several occasions recently, betandwin has taken the precaution of
adding an Italian sports betting licence to its existing licence coverage.
In the autumn of 2005, BetandWin Italia S.r.l., a 100-per-cent owned subsidiary
of BETandWIN.com Interactive Entertainment AG therefore acquired an Italian
sports betting licence. BetandWin Italia S.r.l. also holds a provider’s licence
entitling the company to broker bets between betting shops and the licenser, the
Italian Ministry of Finance / Amministrazione autonoma dei monopoli di Stato
(AAMS) in Rome.

However, this should not hide the fact that betandwin strongly advocates a
regulated and liberalized European market for games of chance. betandwin is
strongly against protectionist measures aimed at slowing down the process of
European liberalization, such as are vehemently pursued by some European member
states. To this extent, betandwin - in conjunction with other members of the
European Betting Association - will be taking action against the Italian Finance
Act at both national and EU level.

SELECTED KEY FIGURES

In order to ensure better comparability with other publicly listed companies,
and in line with internationally established practice, with effect from Q3 2005
turnover from the casino, poker and games sectors has been shown only as net
winnings (betting turnover less customer winnings).

Further Details:
http://www.betandwin.ag/media/pdf/quartals_berichte/pre_quartalsbericht_q4_2005_en.pdf

Further inquiry note:
Press:
Karin Klein
Corporate Communications
BETandWIN.com
Interactive Entertainment AG
Börsegasse 11/Top floor, A-1010
Vienna Phone: +43-1-585 60 44-2200
mailto:press@betandwin.com
http://www.betandwin.ag

Investors:
Konrad Sveceny
Investor Relations
BETandWIN.com
Interactive Entertainment AG
Börsegasse 11/Top floor, A-1010
Vienna Phone: +43-1-585 60 44-2208
mailto:investorrelations@betandwin.ag
http://www.betandwin.ag

end of announcement euro adhoc 03.02.2006 08:00:00
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emitter: BETandWIN.com Interactive Entertainment AG
Börsegasse 11/Lift 3/Top 4
A-1010 Wien
phone: +43 (0) 1 5856044
FAX: +43 (0) 1 5856044 16
mail: investorrelations@betandwin.ag
WWW: www.betandwin.ag
ISIN: AT0000767553
indexes: ATX, Prime.market
stockmarkets: official dealing: Wiener Börse AG
sector: Casinos & Gambling
language: English

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