AGM Statement

Paddy Power plc
17 May 2005

                              Paddy Power plc AGM

                          Chairman's Update Statement


Trading for the 19 weeks to 10 May 2005

Group turnover has increased by 30% in comparison to the same period last year
and turnover growth rates have been improving steadily throughout the business
over the year to date. Turnover has increased by 19% in the retail division, 30%
in the telephone division and 67% in the online division.

The first half of 2004 saw exceptionally strong bookmaking gross win percentages
due to unusually favourable sporting results. As budgeted, 2005 has seen a
return to a more typical gross win profile with total gross win being relatively
flat in comparison to 2004. This reflects the strong growth in both bookmaking
turnover and gaming revenues offset by the lower gross win percentages on the
bookmaking business. Gross win percentages have been mixed with satisfactory
results in the first quarter while results to date in the second quarter are
below average due to a high number of Irish trained horses winning in April.
Overall gross win percentages are below the mid point of the annual ranges as of
10 May, particularly in the Irish retail division which has the highest
proportion of horse racing business. No change is being made to guidance in the
expected annual gross win percentages ranges for each channel.

Gaming revenues have seen continued strong growth in 2005 driven by excellent
development of the casino and games product offering. We are pleased with the
development of the poker business which commenced in February 2005. It remains
too early to accurately predict the impact of poker in 2005 but we continue to
expect a small positive contribution for the year.

Expansion of both the Irish and United Kingdom retail estates has continued in
line with plan with 144 and 32 outlets trading respectively and we remain
confident of continued outlet growth in both markets. Opening of new outlets
remains on track with a bias to openings in the third and fourth quarter in both
countries. The group holds a total of 41 licenses in the United Kingdom.

The group remains confident about its growth prospects for the year. Half year
and full year earnings should be in line with expectations assuming continued
turnover growth levels and the achievement of normal gross win percentages for
the remainder of the year. Earnings for the first half of 2005 should be close
to those of the same period in 2004, reflecting 2004's very challenging
comparatives, while the company is well positioned for a strong second half
performance.

A conference call will be held with analysts at 2.30pm with Ross Ivers, Finance
Director. Dial in details are as follows;

Ireland:   353 (1) 659 2812
UK :       44 (0) 207 365 1832
Code:      4297253

                                      ENDS


Issued on behalf of Paddy Power plc by Drury Communications, contact:

Mark Cahalane/Oonagh Daly                      Trevor Phillips/David Bick
Drury Communications                           Holborn Public Relations, London
Tel: [phone]                            Tel: [phone]

For reference, contact:

Ross Ivers, Finance Director, Paddy Power plc, Tel: [phone]


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