BPTY.L Regulatory News (BPTY)

30 June 2011

bwin.party digital entertainment plc

('bwin.party' or the 'Company' and, together with its subsidiaries, the 'Group')

AGM Statement

Pre-close Trading update and Distribution Policy

Highlights

Ø Current trading broadly in-line with management's expectations

Ø Board has adopted a progressive dividend policy commencing with a dividend of €30m for the year ended 31 December 2011

Ø Share buy-back programme of up to €75m from existing cash resources

Ø Integration on-track to deliver €55m of annualised synergies by 2013

Ø Ongame B2B network to be sold

At the Company's AGM to be held in Gibraltar later today, the Board of bwin.party will be issuing the following statement to shareholders.

Trading and Regulation update

The Group's trading performance since the beginning of April 2011 has been broadly in-line with management's expectations, although sports margins have been lower than expected due to a favourable run of events for customers in May. The improvement in new player sign-ups in poker, following action taken by the US authorities against certain of the Group's online poker competitors on 15 April 2011, has not had a material impact on poker revenue as new players represent just a small proportion of the overall player base and these companies have so far continued to command significant market share in non-US markets. Casino continues to perform well while bingo has been slightly softer than expected in the period.

The pace of regulatory change shows no signs of slowing down as governments around the world embrace the market reality that online gaming is an increasingly popular form of entertainment for adults. Recent developments include in Italy, where cash game poker and casino games are expected to become licensed next month, and in Spain where the proposed regulatory framework is expected to include all products. In Germany, Schleswig-Holstein's proposal to regulate and license all forms of online gaming has been approved by the European Commission and this legislation is now being considered by the State Parliament. An alternative proposal, as put forward by the other 15 Länder, has yet to receive approval from the European Commission.

In the United States there have been a number of fresh efforts to regulate internet poker at both a federal and state level, driven by US consumers' desire to continue to play games online following the enforcement action taken by the Department of Justice in April 2011 and also by widespread support for regulation by the land-based industry. The Group is encouraged by these efforts.

Integration update

Since the completion of the merger that took place on 31 March 2011, we continue to make progress on implementing the plans that we had prepared prior to completion. As a result, we remain on-track to deliver the full €55 million of annualised synergies by 2013 as previously announced.

Sale of Ongame B2B

One area of our stated strategy was to recycle surplus assets. As part of this process and having taken some initial soundings from interested parties, we have commenced a formal process to sell Ongame's Business-to-Business operation that is one of the world's leading online poker networks with a state-of-the-art technology platform. We expect that any sale will be completed by the end of the year.

Distribution Policy

Following the announcement on 15 April 2011, the Board has undertaken a comprehensive review of its capital and distribution policy. This review considered the investment needs of the business over the next few years given the expected changes to the Group's operating environment, together with the Group's significant net cash position, strong cashflow characteristics and long-term earnings potential.

Taking these factors into account, the Board is pleased to announce that it will:

Ø Commence a dividend at the half year results to be announced on 31 August 2011; and

Ø Implement a share buyback programme, subject to market conditions and shareholder approval at today's AGM, of up to €75m. This programme will remain in place for one year and all shares purchased under the programme will be cancelled.

In relation to the dividend the Directors have adopted a progressive dividend policy whilst maintaining an appropriate level of dividend cover, as measured against the Group's free cashflow. This policy reflects the strong cashflow characteristics and long-term earnings potential of the Group whilst retaining sufficient resources to fund ongoing operating requirements and continued investment for long-term growth.

For the year ended 31 December 2011, the Directors intend to pay out €15m as an interim dividend payable in October 2011 and €15m as a final dividend payable in May 2012. Thereafter, the Directors intend to target a payout ratio of no less than 30% of normalised annual free cashflow with the interim dividend representing approximately half of the total annual dividend.

Poll Results

The full results of the poll votes regarding the 16 resolutions to be put to the meeting, of which two resolutions (15 and 16) are special resolutions, will be announced later today.

Contacts:

bwin.party digital entertainment plc

Investors Media

Peter Reynolds +44 (0) 20 7337 0100 John Shepherd +44 (0) 20 7337 0100

Konrad Sveceny +43 (0) 50 858 20017 Matthias Winkler +43 (0) 664 305 0000