euro adhoc: bwin Interactive Entertainment AG / quarterly or semiannual financial statement / bwin Interactive Entertainment AG first nine months of 2006

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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16.11.2006

Vienna, 16 November 2006. bwin Interactive Entertainment AG first
nine months of 2006:

Legal development in US and Europe triggers strategic change earlier
than initially planned

Early changeover from accelerated growth strategy of recent years to
profit orientation and increased focus on European markets

Cessation of Real Money products for US customers: 2006 gross gaming
revenues of around EUR 375 million and balanced EBITDA before
deduction of restructuring costs.

Gross gaming revenues of EUR 289 million trebled compared to previous
year (Q1-Q3 2005: EUR 96.3 million)

Nearly 1.8 million active and 1.1 new active Real Money customers

EBITDA of -EUR 9.4 million after investment phase (Q1-Q3 2005: EUR
8.3 million)

Result after tax of -EUR 49.8 million (Q1-Q3 2005: EUR 1.4 million)
strongly impacted by depreciation charges in association with Ongame
acquisition

bwin changed its strategic approach with effect from the beginning of
Q4 2006 in reaction to the legislative developments in the USA and in
view of the uncertainties in several European countries. A year
earlier than originally planned, bwin’s aggressive growth strategy
will be changed in favour of the profitable development of the
Company with increased cash flow generation. An efficiency
enhancement programme embracing all areas of the Company has been
initiated. The resulting savings should be reflected in the results
with effect from Q1 2007.

bwin estimates the restructuring costs associated with the cessation
of its Real Money gaming products for US customers at around EUR 5.5
million. Consequently, bwin anticipates gross gaming revenues in the
amount of around EUR 375 million for the current financial year,
with a balanced EBITDA before deduction of restructuring costs. Over
and above this, management expects to make a non-cash charge for the
write-off of assets with a current net book value of EUR 534 million
acquired as a result of the Ongame transaction. Shareholders’ equity
will remain strongly positive.

bwin increased its gross gaming revenues in the first nine months of
2006 to EUR 288.7 million. Of this amount, gross gaming revenues from
sports betting operations amounted to EUR 125.2 million (first nine
months of 2005: EUR 65.2 million). The gross gaming revenues
generated by the casino, poker and games sectors amounted
respectively to EUR 60.9 million (first nine months of 2005: EUR 22.2
million), EUR 92.6 million (first nine months of 2005: EUR 5.9
million), and EUR 10.0 million (first nine months of 2005: EUR 3.1
million). US customers accounted for 22.5 per cent (EUR 65 million)
of gross gaming revenues in the first nine months of 2006.

A total of over 1.8 million customers were active in the first nine
months of 2006 (first nine months of 2005: 524,000, up 250.7 per
cent). Of these, 1.1 million customers were active for the first
time.

EBITDA in the first nine months of 2006 totalled -EUR 9.4 million
(first nine months of 2005: EUR 8.3 million). This development was
due to a significant increase in marketing investment associated with
the Soccer World Championships and a greater involvement in the field
of sports sponsoring, designed principally to increase the
familiarity of the bwin brand.

The consolidated loss after taxes and third-party interests was EUR
49.8 million for the first nine months of 2006 (in the first nine
months of 2005: profit of EUR 1.4 million). A charge of EUR 27.3
million was made due to the non-cash depreciation of the customer
base and software acquired as a result of the Ongame transaction.

The complete report on the third quarter and first nine months of
2006 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 16.11.2006 08:00:00
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ots Originaltext: bwin 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