euro adhoc: bwin Interactive Entertainment AG / Justice/Processes / Injunctions: bwin e.K. and bwin contest impediment to competition

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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10.08.2006

bwin e.K., in which bwin Interactive Entertainment AG ("bwin") has an
atypical silent equity stake of 50 per cent, has had a valid trading
licence to offer and broker sports betting ever since the year 1990.
This trading licence has been challenged in a number of court
proceedings in the past, all of which were decided in favour of
Steffen Pfennigwerth, the owner of bwin e.K. In the course of
competition proceedings in October 2001, for instance, the Federal
Supreme Court, Germany’s highest civil court, came to the conclusion
that this trading licence was "not invalid".

Although this trading license has not been revoked, an immediately
enforceable injunction now threatens to prevent Steffen Pfennigwerth
from carrying out his business activities. Fines may be imposed if
this injunction is not observed within 14 days. At the same time, the
Regional Council of Chemnitz has also forbidden bwin - again within a
period of 14 days - to advertise on the domain bwin.com in the Free
State of Saxony. Evidently there is massive political pressure to try
and maintain the government’s German monopoly for as long as
possible, notwithstanding the fact that it is both contrary to
European law and unconstitutional.

Both Steffen Pfennigwerth and bwin will use all the legal means at
their disposal and do everything they can to ensure that these
injunctions are overturned by Dresden Administrative Court within the
period of two weeks specified by the regional council. If, however,
the injunction is enforced, Steffen Pfennigwerth has announced that
he will be claiming damages of around 500 million euros from the
State of Saxony due to the suspension of his business activities.

In the interests of the Company’s customers, the complete range of
betting services will continue to be made available on the websites
www.bwin.de and www.bwin.com until this issue has been resolved.

The bwin Group has over 10 million registered customers (including 7
million "play money" customers) in over 20 core target markets.
Operating under international and regional licences in countries like
Gibraltar, Kahnawake (Canada), Belize and Germany, Italy, Mexico,
Austria and the United Kingdom, the Group has set itself the goal of
becoming the number one address for sports betting, games and
entertainment via digital distribution channels. The Group offers
sports betting, poker, casino games and soft games. The parent
company bwin Interactive Entertainment AG has been listed on the
Vienna Stock Exchange since March 2000 (ID code "BWIN", Reuters ID
code "BWIN.VI"). Further information about the Company can be found
on its investor relations website at www.bwin.ag.

end of announcement euro adhoc 10.08.2006 14:42:20
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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