World Gaming Issues Update - Monday 23rd of January 2006

The Company is pleased toissue an update in respect of trading in the twelve months ended 31 December2005 which included three months of trading from the Sportsbetting.com groupacquisition and an update on the consideration payable relating to thatacquisition.

Subsequent to the Company's acquisition of the Sportsbetting.com groupeffective 1 October 2005, the business has maintained strong performance inrespect of customer sign-ups, deposits, customer activity levels and wageringvolumes, all of which have exceeded management's expectations.

Similarly, the Company's software licensing business has continued toexperience strong growth in licensee wagering volume throughout the fourthquarter of 2005.

It has been widely publicised that sports betting win margins,particularly with respect to American NFL results in the fourth quarter havebeen well below industry trends and well below margins that theSportsbetting.com group has experienced in comparative prior periods.

As previously announced, the terms of the acquisition for theSportsbetting.com group provide that should Profit Before Tax ("PBT") of theSportsbetting.com group fall below $15.0 million for the twelve months ended31 December 2005, then the total consideration shall be equal to the PBTmultiplied by six times. It is expected that PBT for the SPORTSBETTING.Comgroup, calculated in accordance with the terms of the acquisition agreementwill be approximately $13.8 million.

On this basis, consideration payable to the vendors of theSportsbetting.com group is expected to be reduced from the maximumconsideration payable of $96.0 million to approximately $82.8 million, areduction of approximately $13.2m. The reduction in consideration is thereforeexpected to be approximately $9.9 million in cash and $3.3 million orapproximately 1.5 million in shares. All amounts shall be finalised onconclusion of an independent audit.

This reduction in the number of shares to be issued to the vendors of theSportsbetting.com group means that earnings per share for the Company for2006, based on current market expectations, would rise by approximately 3%.

Management expects that operating profit before goodwill amortisation(EBITA) for the Company shall be approximately $6.5 million for the twelvemonths ended 31 December 2005.

Chief Executive Officer Daniel Moran commented: "We are delighted to bereporting on a highly successful year of change and rapid growth for WorldGaming. Our admission to AIM and acquisition of the Sportsbetting.com group,our largest licensee, have put the Company in a very strong trading position.

The Directors are pleased to report that the structure of the transactionfor the acquisition of the Sportsbetting.com group has been highly effectivein maintaining and growing earnings for shareholders. While a short-termabnormality in American NFL trading margins has produced a lower thananticipated sports margin in the fourth quarter, the anticipated reduction inconsideration of over $13 million comfortably mitigates this issue. Strongunderlying performance indicators remain and the start of 2006 has seen areturn to historic margin levels.

The Directors look to the future with confidence and a commitment tocontinued development of our business in coming years."

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