Webis Regulatory News (WEB)

FOR IMMEDIATE RELEASE

28 September 2012

WEBIS HOLDINGS PLC

("Webis" or "the Group")

FINAL RESULTS FOR THE 52 WEEK PERIOD ENDED 27 MAY 2012

Webis Holdings plc, the global on-line gaming group, today announces its final results for the period.

Summary:

·; Turnover of £113.8 million (2011: £105.6 million), an increase of 8%

·; Gross profit of £3.18 million (2011: £3.04 million), an increase of 5%

·; EBITDA profit of £181,000 (2011: profit of £149,000), an increase of 21%

·; Loss for the period of £41,000 (2011: loss of £110,000)

Commenting on the results, Denham Eke, Chairman of Webis Holdings plc, said: "Overall, the board is encouraged by the recent improvements in EWS and betinternet's trading and believes that both businesses are well-placed to capitalise on the opportunities available in the on-line gaming market. We plan to continue to invest in product development for both betinternet and EWS to improve our competitiveness within each area and anticipate that our turnover growth will continue over the forthcoming year".

ENDS

Notes to editors:

The following are attached:

Chairman's Statement

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Financial Statements

Chairman's Statement

Introduction

I am pleased to report improved results for the Group for the 52 week period ended 27 May 2012, with a better performance across the second half from both European Wagering Services Limited ("EWS") and betinternet.com (IOM) Limited ("betinternet"). The Group generated £114 million of turnover for the year (2011: £106 million), EBITDA of £181,000 (2011: £149,000) and recorded an operating loss of £8,000 (2011: £108,000 loss) and an overall loss of £41,000 (2011: £110,000 loss).

EWS

EWS, the Group's pari-mutuel platform, delivered a good performance in the second half following a difficult start to the year and generated turnover for the year of £31 million (2011: £34 million). Over the year, average player numbers and volumes wagered both increased through the on-line platform and call centre, with the majority of these increases coming from leisure players. Further global racing content was added to EWS' product offering, including access to racetrack betting pools in Australia, Canada, Ireland, New Zealand, Sweden and the UK. Payment processing also improved during the latter part of the period.

During the year, EWS completed the transfer of its central business operations to San Francisco, California, where the board has established an office led by Ed Comins, Webis' director of pari-mutuel operations. This move has helped to bring the management team in closer contact with US industry connections, which has already led to the recent agreement to run standard-bred harness race meetings in California (see below). The US remains central to our growth strategy for EWS and the possession of a US pari-mutuel licence, together with other current developments, which I report on later, provide for some interesting prospects for this element of the Group.

betinternet

betinternet, the Group's sportsbook operation, generated good growth in revenues throughout the financial year and turnover increased to £83 million (2011: £71 million). The fixed-odds content has been expanded at a rapid rate and the overall product offering, particularly around football betting where resource has been focused, has been made extremely competitive.

Our 'In Play' content, where odds are offered during live events, has also been strengthened significantly and related revenues accounted for 43% of betinternet's annual turnover on single bets, with football, tennis and basketball being the predominant 'In Play' sports selected by our customers. The 'In Play' growth helped total fixed-odds turnover and gross profit increase by 26% and 5% respectively over the previous year, an element of which was driven by the World Cup. The majority of this growth continued to originate from the Asian-Pacific region. Casino activity also increased during the financial year; however, this was offset by a reduction in play through the games suite.

Going into the new financial year, the performance during the European Football Championships was in line with management's expectations, although betinternet's overall margin, remains volatile as our current customer demographic has a smaller percentage of 'leisure players' than we would prefer, especially within Europe. The board anticipates, however, that the percentage of leisure players will increase as we develop our product further and our sportsbook marketing strategy for the betinternet brand is tailored to support this.

Overview of Results

Group turnover for the 52 week period ended 27 May 2012 was £114 million (2011: £106 million), with betinternet's turnover increasing to £83 million (2011: £71 million) primarily due to the popularity of 'In Play' content. This more than offset the reduction in EWS' turnover to £31 million (2011: £34million).

Group gross profit increased by 5% to £3.18 million (2011: £3.04 million) with overall gross margin reducing slightly to 2.8% (2011: 2.9%). betinternet generated a gross profit of £1.9 million (2011: £1.86 million), with the reduction in gross margin to 2.28% (2011: 2.61%) being attributable to the effect of lower numbers of leisure players. EWS saw higher numbers of leisure players during the year and this helped increase gross margin to 4.2% (2011: 3.5%), generating an 8.5% rise in gross profit to £1.28 million (2011: £1.18 million).

Operating expenses increased by 4%, compared to the previous year, to £3.00 million (2011; £2.89 million). This increase is attributable to the rise in costs relating to the sportsbook's third-party data feeds and is in line with the board's expectations.

EWS generated EBITDA for the year of £193,000 (2011: £60,000 loss) offset slightly by an EBITDA loss of £12,000 (2011: £209,000 profit) at betinternet.

Board changes

Jim Mellon stepped down from his position as non-executive director in January 2012 and was replaced on the board by Sir James Mellon KCMG, who brings a wealth of corporate experience to the company. Sir James has joined both the Remuneration and Audit Committees.

Damon Waddington stood down as Finance Director in April 2012 to pursue another opportunity. The Group's Financial Controller, Chris Allen, took over Damon's accounting and company secretarial responsibilities, with the other executive directors assuming responsibility for the business development work previously undertaken by Damon.

I would like to thank Jim and Damon for their invaluable contributions to the Group over many years.

Strategy

We announced on 24 August 2012 that EWS' wholly owned subsidiary, WatchandWager.com ("WAW"), had received licence approval from the Californian Horse Racing Board and had entered into an agreement with California Exposition & State Fair ("Cal Expo") in Sacramento, California, for the lease and operation of standard-bred harness race meetings at Cal Expo for a five year term, with racing to commence in early November 2012.

The board is excited by the prospects that Cal Expo provides EWS to access further US content and believes that operating a 'bricks and mortar' racing facility within the US puts EWS on a more equal footing with its on-line pari-mutuel wagering competitors. We also anticipate that having a US presence will provide EWS' entire operation with greater leverage in other areas as the business develops and particularly if, as expected, state and federal legislation becomes less restrictive for on-line and off-line gaming.

The board continues to monitor the prospect of any further potential changes to the position of payment processors or their associated banks regarding the handling of US pari-mutuel gaming transactions.

It is anticipated that EWS will launch its new 'WatchandWager.com' website in the first half of the new financial year, which will provide for a significantly better user experience, including live-streaming of race video.

For betinternet, the board has invested in additional sportsbook product through third-party data providers, particularly for 'In Play', which represents betinternet's best growth opportunity. Using a variety of recognised third-party providers remains the operation's business strategy over the short to medium term. In support of this, we have recently recruited senior industry personnel to lead betinternet's trading, development and marketing functions. The board anticipates that these actions will build on the good growth over the last financial year, help stabilise the fixed-odds margin achieved and enhance the performance of the casinos and games products. The board also plans a further update to the betinternet website 'look and feel' in the forthcoming year.

Outlook

Overall, the board is encouraged by the recent improvements in EWS and betinternet's trading and believes that both businesses are well-placed to capitalise on the opportunities available in the on-line gaming market. We plan to continue to invest in product development for both betinternet and EWS to improve our competitiveness within each area and anticipate that our turnover growth will continue over the forthcoming year.

Finally, I would like to thank you for your support as shareholders and to our staff for their loyalty and dedication throughout the year.

Denham Eke

Chairman

Consolidated Statement of Comprehensive Income

for the Period ended 27 May 2012

Consolidated Statement of Financial Position

As at 27 May 2012

Statement of Changes in Equity

for the Period ended 27 May 2012

Consolidated Statement of Cash Flows

for the Period ended 27 May 2012

Notes to the Financial Statements

For the Period ended 27 May 2012

1 Reporting entity

Webis Holdings plc is a company domiciled in the Isle of Man. The address of the Company's registered office is Viking House, Nelson Street, Douglas, Isle of Man, IM1 2AH.

The Group's consolidated financial statements as at and for the period ended 27 May 2012 consolidate those of the Company and its subsidiaries (together referred to as "the Group").

This announcement does not constitute the Group's statutory financial statements. It is an extract from the financial statements for the period ended 27 May 2012 which have not yet been filed.

1.1 Basis of preparation

(a) Statement of compliance

The financial information included in this announcement has been extracted from the Group's consolidated financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") and its interpretations adopted by the International Accounting Standards Board ("IASB").

(b) Basis of measurement and functional currency

The Group consolidated financial statements are presented in Pounds Sterling, rounded to the nearest thousand. They are prepared under the historical cost convention except where assets and liabilities are required to be stated at their fair value.

(c) Use of estimates and judgement

The preparation of Group financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Although these estimates are based on management's best knowledge and experience of current events and expected economic conditions, actual results may differ from these estimates.

The directors believe the assumptions used in the model to calculate the fair value of the share based payments are the most appropriate for the Group.

2 Segmental Analysis

3 Share-based payment expense

4 Net finance costs

5 Taxation

No provision for taxation is required for either the current or previous periods, due to the zero per cent corporate tax regime in the Isle of Man. Unprovided deferred tax was £Nil (2011: £Nil).

6 Earnings per ordinary share

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

The calculation of the diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares, on the assumed conversion of all dilutive share options.

An adjustment for the dilutive effect of share options and convertible debt in the previous period has not been reflected in the calculation of the diluted loss per share, as the effect would have been anti-dilutive.

7 Intangible assets - goodwill

The goodwill relates to the acquisition of the pari-mutuel business which is both a cash generating unit and a reportable segment, including goodwill arising on the acquisition in 2010 of WatchandWager.com LLC, a US registered entity licenced for pari-mutuel wagering in North Dakota.

The Group tests intangible assets annually for impairment, or more frequently if there are indications that the intangible assets may be impaired. The recoverable amount of goodwill on both pari-mutuel business units has been determined based on a value in use calculation using cash flow projections based on financial budgets approved by the Directors.

The key assumptions on which the Directors have based their three year discounted cash flow analysis are a pre-tax discount rate of 15% and growth rate in pari-mutuel business of 2%. The assumption of growth rate in pari-mutuel business has been based on the historic performance of the business as well as forecast performance based on the Board's plan to invest further in this business. In respect of the value in use calculations, cash flows have been considered for both the conservative and the full forecast potential of future cash flows with no impact to the valuation of goodwill.

8 Intangible assets - Other

9 Property and equipment

10 Approval of financial statements and Notice of Annual General Meeting ("AGM")

The financial statements were approved by the Board on 28 September 2012. The Annual Report and Financial Statements for the period ended 27 May 2012 incorporating the Notice of AGM will, in due course, be posted to shareholders and made available on the Group's website (www.webisholdingsplc.com) and at the Group's Registered Office: Viking House, Nelson Street, Douglas, Isle of Man IM1 2AH.

The AGM will be held at The Claremont Hotel, 18/19 Loch Promenade, Douglas, Isle of Man, on 1 November 2012 at 11.00 a.m.

The Group's nominated adviser and broker is Merchant Securities Limited, 1 City Square, Leeds LS1 2ES.