05.09.2005 – 19:18

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.

  Ad hoc-Mitteilung übermittelt durch euro adhoc. Für den Inhalt ist der
  Emittent verantwortlich.

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:

·       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.

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.

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