betbull - The European Betting Exchange Plc.

euro adhoc: betbull - The European Betting Exchange Plc.
Sonstiges
Betbull - The European Betting Exchange Plc - announces acquisition of leading German retail bookmaker (subject to conditions precedent) and its 2nd quarter results.

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05.09.2005

Betbull has agreed to acquire 100% of the Leip Group, one of Germany’s leading retail bookmakers. The agreement is subject to several conditions precedent and expected to become effective on October 1st.  This landmark deal is a cornerstone in Betbull’s move to establish itself as a leading Continental European retail betting player.

In the year ended 31 December 2004 the Leip Group's (unaudited) accounts showed a profit before tax of EUR1 million (EBITDA EUR 1.4 million) on bets placed of EUR51.7 million and revenue of EUR8.1 million. Overall, the Leip Group accepts bets from over 80 retail shops and operates its own high street outlets under the "Wettenleip" brand.  The year 2005 to date unaudited results for the Leip Group indicate strong growth both in terms of revenue and profits.

The Directors believe that the Leip Group together with Betbull has the expertise, personnel, outlets, licenses, and scale to quickly grow in the German retail betting market and to realise imminent opportunities in other Continental European countries.  Alexander Leip, founder of the Leip group, will join Betbull’s Board of Directors as an executive and remain Managing Director of the Leip group.

The plan is to grow the retail betting business through the opening of new shops, the introduction of new products and systems and acquiring and integrating other retail betting businesses as appropriate.

The total purchase price consideration consists of EUR10.0 million and 700,000 Betbull ordinary shares with customary lock up provisions.  In addition, success based earn-out payments have been agreed upon subject to reaching ambitious hurdles over the next five years.

The expected closing of the transaction on October 1st entails a fund raising for Betbull and is conditional, among other things, on the approval of Betbull’s shareholders, satisfactory auditor’s reports on the interim statements of the Leip Group, and the approval of relevant Lotteries & Gaming Authorities.  The extraordinary shareholders’ meeting is scheduled for September 29th in London.

A more detailed account of the transaction is contained in the invitation to the extraordinary shareholders meeting which will be published on Betbull’s website Wednesday 7th September and will be given in the shareholders meeting itself.

Betbull also announces its 2nd quarter results.  During the period 1st April through 30th June 2005:

@@start.t2@@·          Betbull launched the German betting exchange www.betbull.de and kicked
off promotions on German race tracks.  www.betbull.de is licensed in Germany.
·          Marketing spending was kept to a minimum, in line with the Company’s B2B
strategy, but investment was made in sponsorship deals with leading German
race-courses promoting the co-operative model where racing associations and
bookmakers pool bettors and liquidity and receive a profit share in exchange.
·          Income from operations (still in a start up phase) increased on a
quarter by quarter basis to EUR21,000 as of period end June 30th 2005.
·          Betbull retains a healthy cash position of £7.3 million or EUR10.5
million (as at 30th June 2005).
·          Fixed costs were significantly reduced.@@end@@

Commenting on the announcement of the acquisition of the Leip Group, Günter Schmid, CEO of Betbull said:

"With the acquisition of the Leip Group Betbull will have left the start up phase behind.  We have scanned several opportunities in the European Gaming sector and decided for the acquisition of the Leip Group as our preferred choice - a profitable and cash generative business in a European key market with huge growth potential.  Our vision is to grow the business organically and through acquisitions building upon the lead in the rapidly expanding, yet still immature retail betting sector."

Simon Bold, COO of Betbull, further added: "This is a fantastic opportunity for Betbull to be a part of the retail business in Germany in the World Cup year 2006.  The German retail sector is ready for the changes that we can bring about in terms of opportunities, speed and convenience.  With my background in retail bookmaking I am confident that we can create substantial value there. This acquisition is only the start of our Continental European retail growth strategy."

Alexander Leip, Managing Director of Wettenleip, further added: "Betbull makes an excellent fit with my business and team.  I am looking forward to growing the German retail betting business to the next level together with Simon, Günter, and their team."

This ad hoc release plus 2005 Quarter Two consolidated balance sheet and the profit and loss account are available on the www.betbullplc.com site.

ENDS

Contact Alex Mackey, Catullus Consulting (+44 7773 787 458) Catriona MacNiven, Investor Relations Günter Schmid, CEO (upon request) Simon Bold, COO (upon request)

Phone +350 52561 Fax +350 44554 betbull - The European Betting Exchange Plc ("betbull") 1 London Wall London EC2Y5EB

This communication can be downloaded from the website www.betbullplc.com.

About betbull Betbull has the goal to establish itself as one of the leading Continental European retail betting players.

Midterm a significant fraction of retail’s single bets shall be traded, cleared, and settled through betbull’s exchange.

The high caliber management team (Günter Schmid, CEO and Simon Bold, COO) can resort not only to state of the art bookmaking and operating know how but also relevant M&A expertise and track record.

Betbull was started in 2004 as a joint venture of betandwin.com Interactive Entertainment AG (stock quoted on the Viennese stock exchange) and Fun Technologies Plc (formerly traded as CES-Software Plc, stock quoted on the Alternative Investment Market in London) and is stock quoted since October 2004 on the Viennese stock exchange ("BETB", "BETB.VI").

For further details please refer to the company website www.betbullplc.com.

This communication contains statements about the future (prognoses). Those statements are based on the Directors’s opinion, assumptions made by the Directors, and information available to the Directors. One or several factors that the Directors cannot foresee with certainty could result in outcomes and events that deviate from the prognoses.  All prognoses are valid only on the date of their announcement.  Betbull has no intentions to and is not obliged to update prognoses or to adapt prognoses to future events or developments.

@@start.t3@@Ende der Mitteilung                                                 euro adhoc 05.09.2005 18:44:44
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ots Originaltext: betbull - The European Betting Exchange Plc.
Im Internet recherchierbar: http://www.presseportal.de

Rückfragehinweis:
betbull - The European Betting Exchange Plc.
Catriona Macniven
Investor Relations
Tel.:    +350 77331
e-Mail: c.macniven@betbull.com

Branche: Glücksspiele
ISIN:      AT0000615331
WKN:        
Börsen:  Wiener Börse AG / Börse



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