Q3 KPIs and trading update

888 Holdings plc 14 November 2006 14 November 2006 888 Holdings Public Limited Company ('888') Q3 2006 Key Performance Indicators and Trading Update 888, one of the world's most popular online gaming companies, today provides the following trading update for the third quarter of 2006 and cumulative results for the nine months ended 30 September 2006. Highlights: * Accelerated growth outside the US with Net Gaming Revenue from non-US business up 34% at US$117 million for the first nine months of the year * Number of active non-US members reached 179,439, a 5% increase on Q2 2006 and 11% increase on Q3 2005 * Liquid resources in excess of US$95 million (1) * Real money operations from the US suspended following the US Safe Port Act becoming effective * Implementation of group wide cost optimization plan following the suspension of the group's US activities resulting in a one-off expense of approximately US$6 million in second half 2006 * New casino and poker offering released as well as new localized sites in Spanish and Danish (1) As at 10th November 2006 after payment of interim and special dividend and netting off all outstanding customer deposits Commenting on today's announcement, John Anderson, Chief Executive Officer, said: 'The results released today demonstrate the resilience of our business model and are a direct result of careful implementation of our long standing strategy to diversify our product offering and geographical spread. We are pleased with these results in, what is typically the slowest quarter of the year. Despite the suspension of our real money gaming operations in the US, following the enactment of the Safe Ports Act in October 2006, our business continues to be sound and exhibit healthy growth in non-US regions. As a result of the significant change to our business environment we have embarked on a cost optimization programme across the group including a modest reduction in marketing and R&D which are key to our future accelerated growth. As expected, despite this action our margins will suffer in the medium term until business volumes increase. 888 is debt free and has ample liquid resources to both fund our operations and participate in attractive opportunities for market consolidation.' Set out below are 888's results for Q3 for our non-US business, cumulative results for the first nine months of the year for the non-US business and the same data for the entire business. Key performance Indicators - Continuing Business (all regions excluding US) Q3 2006 * Net Gaming Revenue up 20% to US$38 million (Q3 2005: US$32 million) * Net Gaming Revenue from casino up 5% to US$23 million (Q3 2005: US$22 million) * Net Gaming Revenue from poker up 54% to US$16 million (Q3 2005: US$10 million) * Number of active members reached 179,439, an increase of 5% compared to Q2 2006 * Number of active casino members reached 46,444, a decrease of 4% compared to Q2 2006 * Number of active poker members reached 132,995, an increase of 9% compared to Q2 2006 * Quarterly Net Gaming Revenue per active group member was US$214 compared to US$228 in Q2 2006. In casino quarterly Net Gaming Revenue per active member was US$488 compared to US$465 in Q2 2006. In poker quarterly Net Gaming Revenue per active member was US$118 compared to US$134 in Q2 2006. * As at 30 September 2006, 888 had 3.4 million real money registered member accounts from non-US regions, representing an increase of 40% in real money member accounts since 30 September 2005. Nine months ended 30 September 2006 * Net Gaming Revenue up 34% to US$117 million (Nine months to 30 September 2005: US$87 million) * Net Gaming Revenue from casino up 5% to US$67 million (Nine months to 30 September 2005: US$64 million) * Net Gaming Revenue from poker up 115% to US$50 million (Nine months to 30 September 2005: US$23 million) Key performance Indicators - All Regions Q3 2006 * Net Gaming Revenue up 13% to US$79 million (Q3 2005: US$70 million) * Net Gaming Revenue from casino up 10% to US$45 million (Q3 2005: US$40 million) * Net Gaming Revenue from poker up 17% to US$34 million (Q3 2005: US$29 million) * Number of active members reached 294,263, an increase of 5% compared to Q2 2006 * Number of casino active members reached 71,522, virtually unchanged from Q2 2006 * Number of active poker members reached 222,741, an increase of 6% compared to Q2 2006 * Quarterly Net Gaming Revenue per group active member was US$269 compared to US$284 in Q2 2006. In casino quarterly Net Gaming Revenue per active member was US$624 compared to US$628 in Q2 2006. In poker quarterly Net Gaming Revenue per active member was US$155 compared to US$167 in Q2 2006. * As at 30 September 2006, 888 had more than 26.4 million registered member accounts out of which 6.6 million were real money registered member accounts, representing an increase of 30% in real money member accounts since 30 September 2005. Nine months ended 30 September 2006 * Net Gaming Revenue up 25% to US$243 million (Nine months to 30 September 2005: US$194 million) * Net Gaming Revenue from casino up 12% to US$134 million (Nine months to 30 September 2005: US$120 million) * Net Gaming Revenue from poker up 48% to US$108 million (Nine months to 30 September 2005: US$73 million) Trading Update 888 is currently converging its product offering into a shared platform and unified wallet, which will provide an improved customer experience. As a first step our latest poker offering, released in November 2006, includes direct, easy access to Blackjack as a game next to all other poker games. During the quarter we released a new improved casino offering followed by two new bonus video slots - 'Goals of gold' and 'Labyrinth of Egypt'. In poker we released a new improved poker client (download and no download versions) with a new ghost card feature. Finally, our localisation programme continues with the introduction of a new poker client in Spanish and the introduction of a new poker site in Spanish and a new casino site in Danish. The Board is encouraged that since suspending real money services to US based customers in October 2006, no negative impact on the non-US business has been observed in either casino or in poker revenues. However given the short trading period it is difficult to comment on the longer term impact of the reduced business volume. Facing the new business environment the group has completed a thorough review of its operations and fixed cost base. Existing marketing resources have been re-deployed and re-focused on non-US markets and a headcount reduction plan is being implemented across the group. As a result of this restructuring plan and suspension of its real money gaming operations in the US the group expects to incur in the second half of the year a one-off expense of approximately US$6 million. Analyst and Investor Conference Call John Anderson, Chief Executive Officer, Gigi Levy, Chief Operating Officer and Aviad Kobrine, Chief Financial Officer, will be hosting an analyst and investor conference call at 9.30am (GMT) today. Dial-In No: +44 (0) 20 8974 7950 (UK) 718 354 1176 (US) Password: 807632# UK Replay no: 0800 7311 729 (available for 1 week) Replay passcode: 349910 International Replay no: +44 (0)12 966 186 76 (available for 1 week) Replay passcode: 349910 Contacts and enquiries 888 John Anderson Chief Executive Officer +350 49800 Gigi Levi Chief Operating Officer +350 49800 Aviad Kobrine Chief Financial Officer +350 49800 Bell Pottinger Corporate & Financial Nick Lambert/Christopher Hamilton +44 (0)20 7861 3232 This announcement includes statements that are, or may be deemed to be, 'forward-looking statements'. By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement reflect 888's view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, 888 undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement. This information is provided by RNS The company news service from the London Stock Exchange

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