euro adhoc: bwin Interactive Entertainment AG / quarterly or semiannual financial statement / Vienna, 17 August 2006. bwin Interactive Entertainment AG first half of 2006

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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17.08.2006

• bwin fastest-growing company in the online gaming industry - gross
gaming revenues of EUR 191.6 million up 216 per cent
• Around 1.5 million active "real money" customers, incl. 770,000 active
for first time (up 289 per cent and 237 per cent respectively)
• Company still in hyper growth phase - EBITDA of -EUR 3.8 million
• Revised expectations for financial year 2006: gross gaming revenues of
approximately EUR 435 million - EBITDA of at least EUR 40 million

bwin increased its gross gaming revenues in the first half of 2006 to
EUR 191.6 million. This represented an increase of 216 per cent
compared to the same period the previous year (first half of 2005:
EUR 60.6 million). Of this amount, gross gaming revenues from sports
betting operations amounted to EUR 80.8 million (first half of 2005:
EUR 41.9 million). The gross gaming revenues generated by the casino,
poker and games sectors amounted respectively to EUR 41.2 million
(first half of 2005: EUR 13.8 million), EUR 63.0 million (first half
of 2005: EUR 3.1 million), and EUR 6.5 million (first half of 2005:
EUR 1.8 million).

Almost 1.5 million customers were active in the first half year
(first half of 2005: 376,000 customers, up 289 per cent). This
included around 770,000 customers who became active for the first
time (first half of 2005: 227,000 customers up 237 per cent).

Expenses for personnel (EUR 23.6 million), marketing (EUR 100.9
million) and other expenses (EUR 51.7 million) rose to EUR 176.1
million (first half of 2005: EUR 49.4 million). EBITDA amounted to
-EUR 3.8 million (first half of 2005: EUR 4.6 million). Several
factors impacted the result for the first half year of 2006 and are
outlined here. The development of revenues in the sports betting
sector fell below average during the Soccer World Cup due to the many
wins by favourites. Furthermore, the growth of the poker business in
the USA was below expectations, and Ongame’s contribution to the
result, though positive, was also below plan. Other factors included
the increased costs for legal advice and lobbying activities aimed at
liberalizing the European market.

The consolidated loss after taxes and third-party interest was EUR
27.1 million for the first half of 2006 (first half of 2005: EUR 0.1
million). A charge of EUR 18.2 million had to be made due to the
non-cash depreciation of the customer base and software acquired as a
result of the Ongame transaction.

Outlook: bwin revised its expectations for the financial year 2006
for the growth of its gross gaming revenues to approximately EUR 435
million with EBITDA of at least EUR 40 million.

The complete report on the second quarter and first half of 2006
including the outlook can be found online on the bwin investor
relations website at www.bwin.ag, where it can also be downloaded in
PDF format.

end of announcement euro adhoc 17.08.2006 08:00:00
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ots Originaltext: BETandWIN.com Interactive Entertainment AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Investors:
Konrad Sveceny, Investor Relations
bwin Interactive Entertainment AG
Boersegasse 11, 1010 Vienna, Austria
Tel.: +43 (0)50 858-2208
E-mail:investorrelations@bwin.ag
http://www.bwin.ag

Press:
Karin Klein, Corporate Communications
bwin Interactive Entertainment AG
Boersegasse 11, 1010 Vienna, Austria
Tel.: +43 (0)50 858-2200
E-mail:press@bwin.com
http://www.bwin.ag

Branche: Casinos & Gambling
ISIN: AT0000767553
WKN: 936172
Index: ATX, Prime.market
Börsen: Wiener Börse AG / official dealing