Interim Results

Paddy Power plc
23 July 2002

                                   Paddy Power Plc
                       2002 Interim Results Announcement
                                   Record Results

Paddy Power plc, trading as Paddy Power Bookmaker, today announced record
turnover, operating profits and earnings per share for the six months ended 30
June 2002.

Highlights

Turnover                                  €319.1m              (2001: €206.4m)               +55%
Operating profit                            €9.1m               (2001: € 4.0m)              +127%
EPS                                        €0.163               (2001: €0.074)              +120%
Dividend per share                         €0.034               (2001: €0.017)              +100%
Cash balances                              €29.4m               (2001: €18.3m)              + 61%



-          Appointment of John O'Reilly as Chief Executive
-          Appointment of Stewart Kenny as Chairman.
-          Appointment of Ross Ivers as Deputy Chief Executive and Finance
           Director.

Commenting on his first set of results as Chief Executive, John O'Reilly said:

'I am delighted to have been appointed Chief Executive of Paddy Power and look
forward to growing and developing the business along with my colleagues. As
always our continued focus will be on our customers who have made Paddy Power
the company it is today. The first half of the year has seen strong development
of the business across all channels and is a testament to the success of our
strategy. We have made excellent progress in developing the Paddy Power brand in
the UK through our On-line and Dial-a-Bet offering while we continue to develop
our core Irish operations. The World Cup gave us an excellent opportunity to
showcase the difference of our product in the UK where we got significant media
coverage. We remain positive about the prospects for Paddy Power and look
forward to reporting continued growth at the full year results announcement. '

Commenting on the results Deputy Chief Executive and Finance Director Ross Ivers
said:   ' The six months to June have seen excellent turnover growth on the back
of an uninterrupted sporting calendar in contrast to 2001. Gross margins have
been strong across the Betting Office estate, which has made a significant
contribution to operating profits, while the continued turnover growth at good
margin in the On-line division has significantly improved its performance.'

23 July 2002


Issued on behalf of Paddy Power plc by Drury Communications


For reference:


John O'Reilly                          Ross Ivers
Chief Executive                        Deputy Chief Executive & Finance Director
Paddy Power plc                        Paddy Power plc
Tel: + 353 1 4045936                   Tel: + 353 1 4045912
Mobile: + 353 87 254 1688              Mobile: + 353 87 668 8772

Mark Cahalane/                         Trevor Phillips
Maire-Therese Duffy                    Holborn
Drury Communications Ltd               Tel: + 44 207 929 5599
Tel: + 353 1 260 5000
Mobile: + 353 87 230 2737


                              2002 Interim Report


Chairman's Statement

I am delighted, in issuing my first report as Chairman of Paddy Power, to report
record sales, operating profit and earnings per share for the six months ended
30 June 2002.  Turnover grew by 55% to €319.1m from €206.4m, reflecting the
impact of cancelled sporting events in the first half of 2001 due to the foot
and mouth crisis, along with solid underlying growth. Operating profits
increased by 127% to €9.1m from €4.0m, driven by the turnover growth and good
gross margins in the Betting Offices and On-line divisions. The results and
operations are discussed in more detail in the following pages of the interim
report.

The number of our Betting Offices in Ireland continues to grow with three new
outlets opened during the period whilst we have commenced a process to create a
Betting Office estate in the UK. Telephone betting continues to show strong
growth in Ireland while its roll-out in the UK is generating significant
turnover growth. We are delighted with the continued development of our On-line
betting, which has shown continued turnover growth through the period with a
consequent improvement in performance. We remain confident that this business
will meet its profit objective of breakeven in 2003.

During the period the bookmaking industry reached agreement with the British
Horseracing Board on the pricing for pre-race data. Given the cost we have had
no choice but to pass this on to our customers, which in my view, is an unfair
burden.  Despite charging the 1% this will not cover the cost to Paddy Power of
the additional charges paid to the British Horseracing Board.  In Ireland,
reduced betting taxes came into effect from 1 May 2002, which is a far-seeing
move by the Minister for Finance, Charlie McCreevy TD, which will stimulate the
industry and increase employment.  In addition, the positive response from the
UK government to the Budd report augurs well for the medium term growth of our
UK Betting Offices. However, the continuation of the anti-competitive demand
test for the next two to three years will limit the pace of organic growth in
the UK.

The World Cup gave us a tremendous opportunity to show the unique differences
between Paddy Power and other bookmakers, especially in the UK.

I am delighted to take up the position of Chairman and hope I can do as good a
job as John Corcoran has done in guiding and giving long-term vision to Paddy
Power over the past 15 years.  Paddy Power would not be what it is today without
his long-term vision, drive and practical team building skills.  I am confident
the excellent team at Paddy Power, under the new leadership of John O'Reilly,
Chief Executive, and Ross Ivers, Deputy Chief Executive and Finance Director,
will continue to strengthen your Company.

The Board has decided to pay an interim dividend of 3.4 cent per share on 12
August 2002 to shareholders on the register at the close of business on 2 August
2002. This is an increase of 100% and reflects your Board's views of the
financial strength of the Company.

We remain positive about the prospects for Paddy Power plc and look forward to
being able to report continued growth at the full year.

Operations Review

Paddy Power continues to be a small stake, fixed odds bookmaker operating
through the brand name Paddy Power Bookmaker. Distribution is primarily through
a 129-shop Betting Office estate complemented by the fast growing Telephone and
On-line channels.

Betting Offices

The Group operates 129 Betting Offices (2001:122) throughout Ireland and the UK.
Three (2001: four) new Irish outlets were opened in the six months to 30 June
2002.  127 of the Betting Offices are in Ireland and two are in the UK. The
Group also operates four racecourse shops (2001:four) as well as a shop in
Lansdowne Road, home of the Irish Rugby Football Union and home ground for the
Football Association of Ireland. During the period the Group relocated one
(2001: one) Betting Office to larger and better-positioned premises and
undertook three (2001:three) refurbishments.

The Group has also identified a number of premises in the UK and has applied for
licences to open a small number of new outlets in 2002 and 2003.

Telephone Betting

The Group operates a telephone betting service 'Dial-a-Bet' available by
freephone to Irish and UK based customers.  We have continued to see strong
growth in this channel with total active customers increasing to 19,085 from
9,227 at 31 December 2001. (Active customers are those that have bet with us in
the previous three months). In January 2002, we commenced actively marketing
this product in the UK, making our prices available via key mediums such as
Channel 4 and ITV Text services, as well as undertaking a range of other
promotional activities. Our UK customer base has grown to 13,178 from 2,665 at
31 December 2001.  We are very pleased with the acceptance of the Paddy Power
brand in the UK and will continue to invest in it as one of our key distribution
channels in this market.

On-line

The On-line division, (paddypower.com) has shown very strong growth throughout
the period and achieved its first €2million turnover week in June 2002, during
the World Cup. The total number of active customers continues to grow each
month, reaching 33,988 at 30 June 2002, compared to 14,758 at 31 December 2001.
Sterling customers account for 59% of active customers.

Management

Following the appointment of John O'Reilly as Chief Executive, Ross Ivers has
been appointed Deputy Chief Executive and Finance Director.  In tandem with his
responsibilities as Finance Director, he also assumes responsibility for
managing strategic planning and development, investor relations, as well as
undertaking a number of specific operational projects.

Financial Review

Turnover

Turnover for the six months ended 30 June 2002 was €319.1m (2001: €206.4m) an
increase of 55%.

Total Betting Office turnover was €218.5m (2001: €170.4m) an increase of 28%
while like for like turnover in the Betting Office estate was €208.7m an
increase of 22.4%.  Average slip value for the period was €14.55  (2001: €13.44)
an increase of 8% while slip volumes for the period increased by 19%.

Turnover in the Dial-a-Bet division increased from €22.0m to €59.2m an increase
of 168% as a result of a significant increase in customer numbers, together with
increase in average slip size.   Average slip size increased from €81.86 to
€101.15 compared to the same period in 2001.

On-line turnover grew to €41.4m from €14.0m an increase of 196%. Average bet
size was €22.9 compared to €30.75 in the same period in 2001.  This should
ensure that a long-term stable margin is achieved.

The growth in turnover was significantly assisted by the return to a full
sporting calendar following the disruption in 2001 due to the foot and mouth
crisis. In addition, the World Cup generated additional revenues as well as
providing many opportunities to build brand awareness.

Gross Margin

Gross margin, measured as bets placed (excluding betting duty and levies) less
winnings returned to customers (including money back specials), increased by 38%
from €28.1m to €38.9m for the same period in 2001. The following gross margin
percentages were achieved.


Gross Margins                            H1 2002          H1 2001                H2 2001
Betting Office                            13.85%            14.9%                  12.1%
Dial-a-Bet                                 8.33%             9.8%                   7.5%
On-line                                    8.85%             4.5%                   7.7%

The gross margin percentages for the period must be judged in context of
historical norms. The 2001 margin percentage for the Betting Offices and
Dial-a-Bet were abnormally high due to the unusual trading circumstances
surrounding the foot and mouth outbreak, while the On-line margin was poor, due
to one-off issues associated with the start up of this division.

The 2002 Betting Office margin percentage, while dropping from 2001, is at the
high end of the normal trading range of 12% to 14%.  The Telephone division
gross margin decreased from 2001 as expected and is within the normal trading
range. The On-line division margin improved to 8.85% as this division gains
critical mass.

The World Cup diluted average gross margins as it was used as a self-funding
brand building exercise. The generally good results were used to finance a
series of money back special offers to distinguish Paddy Power from its
competitors.

Operating Profit

Operating profit grew from €4.0m to €9.1m an increase of 127%, broken down as
follows:

Operating Profit                              H1 2002               H1 2001
                                                €'000                 €'000          Increase/(decrease)
Betting Offices                                10,750                 9,363                          15%
Dial-a-Bet                                         16                   480                        (96%)
On-line                                       (1,693)               (5,833)                          70%
Total                                           9,073                 4,010                         127%

Operating profit growth of 15% in the Betting Offices reflects the strong
turnover growth offset by lower gross margins and higher general operating
costs, as a result of inflation and longer opening hours. The Dial-a-Bet
division has seen turnover growth of 168% while profits have reduced by 96%.
This is due to the increased tax costs incurred as a consequence of providing
tax-free telephone betting together with the increased cost base from the
initial expansion into the UK in 2002. Performance in the On-line division has
improved by 70% as turnover continues to grow with small incremental cost
impact.

Taxes and Levies

With effect from 1 May 2002 the Irish betting tax rate was reduced to 2% from
5%. At the same date, the Irish Bookmakers agreed a new licensing regime for
pre-race data with the British Horseracing Board, at a cost of 10% of gross
profits on British Horseracing. Due to this new cost a 1% levy on all bets
placed in the Betting Offices is now being charged by Paddy Power.  This levy
will not cover all of Paddy Power's additional costs for British racing.

Corporation Tax charge for the six months ended 30 June amounted to €1.6m (2001:
€0.8m) an effective rate of 17% (2001:19.3%). The reduction in the effective
rate follows the reduction in the Irish Statutory tax rate from 20.0% to 16.0%
in 2002.

Cash Flow

Net cash flow from operating activities for the six months ended 30 June 2002
increased by 226% to €16m from €4.9m. This cash was primarily used to acquire
fixed assets of €2.7m, and to pay dividends and taxes of €1.6m and € 0.7m
respectively. Cash balances at 30 June were €29.4m compared to €18.3m at 31
December 2001. This includes €3.7m of balances held on behalf of customers.

Dividends

The Board has approved an interim dividend of 3.4 cent per share (2001:1.7 cent)
an increase of 100 %.  It remains the Board's intention that the interim
dividend be approximately one third of the total dividend.

Shareholding

On issuing this results announcement the lock-in deed, entered into on flotation
of the company in December 2000, is unwound, with the exception of Mr Stewart
Kenny's holding of 2,479,832 shares. Mr Kenny remains subject to the lock-in
deed until 20 March 2003 under which he may not dispose of any of his shares
without the permission of Goodbody Stockbrokers and ING Barings.

Outlook

The outlook for all business channels remains positive. The exceptional turnover
growth rates for the six months to 30 June are unlikely to be sustained in the
second half of 2002, as the prior year comparatives returned to normal levels
following the end of the foot and mouth crisis in May 2001.  The company will
continue to actively market Paddy Power in the UK as it expands its Betting
Offices, Telephone and On-line operations.

Stewart Kenny
Chairman
Paddy Power plc


Consolidated Profit and Loss Account
Six Months Ended 30 June 2002


                                                      Six Months Ended   Six Months Ended       Year Ended
                                                          30 June 2002 30 June 2001 €'000      31 December
                                                                 €'000                                2001
                                                                                                     €'000

Turnover                                                       319,142            206,416          461,075
Cost of winning bets paid                                    (280,272)          (178,340)        (404,624)
Gross Profit                                                    38,870             28,076           56,451
Operating Expenses                                            (29,797)           (24,066)         (47,944)
Operating Profit                                                 9,073              4,010            8,507
Interest payable and similar charges                              (75)                  -             (71)
Interest receivable and similar income                             266                315              656
Profit on ordinary activities before                             9,264              4,325            9,092
taxation
Tax on profit on ordinary activities                           (1,575)              (833)          (1,763)
Profit on ordinary activities after                              7,689              3,492            7,329
taxation
Dividends                                                      (1,603)              (801)          (2,404)
Retained profit for the period                                   6,086              2,691            4,925
Retained profit brought forward                                 21,792             16,867           16,867
Retained profit carried forward                                 27,878             19,558           21,792
Earnings per Share
Basic                                                            16.3c              7.41c            1.55c
Diluted                                                          15.1c              6.90c            1.43c
Dividend per share                                                3.4c              1.70c            5.10c


Consolidated Balance Sheet
30 June 2002

                                                            30 June 2002      30 June 2001        31 Dec2001
                                                                   €'000             €'000             €'000
Fixed Assets
Tangible Assets                                                   22,516            22,565            22,749
Intangible Assets                                                  1,085             1,206             1,146
                                                                  23,601            23,771            23,895
Current Assets
Debtors                                                            1,425             1,168             1,110
Cash at bank in hand                                              29,436            14,318            18,307
                                                                  30,861            15,486            19,417

Creditors (amounts falling due within one                       (16,326)          (10,758)          (10,755)
year)
Net Current Assets                                                14,535             4,728             8,662
Total assets less current liabilities                             38,136            28,499            32,557
Creditors (amounts falling due after one                           (580)                 -             (793)
year)
Provision for liabilities and charges                              (737)                 -           (1,031)
Net assets                                                        36,819            28,499            30,733

Capital and reserves
Called up share capital                                            4,714             4,714             4,714
Share premium                                                      3,305             3,305             3,305
Capital redemption reserve fund                                      662               662               662
Capital conversion reserve fund                                      260               260               260
Profit and loss account                                           27,878            19,558            21,792
Shareholders' funds-all equity interests                          36,819            28,499            30,733


Consolidated Cash Flow Statement
Six Months Ended 30 June 2002

                                      Six Months              Six Months            Year Ended
                                           Ended                   Ended           31 December
                                                                                          2001
                                    30 June 2002            30 June 2001
                                           €'000      €'000        €'000      €'000         €'000      €'000

Net cash inflow from                                 16,035                   4,897                   11,461
operating activities
Returns on investments
and servicing of finance
Interest received                            266                     315                      656
Interest element of                         (75)                       -                     (71)
finance lease payments
                                                        191                     315                      585
Taxation
Corporation tax paid                                  (700)                 (2,556)                  (2,840)

Capital expenditure and
financial investments
Acquisition of tangible                  (2,660)                 (3,632)                  (6,398)
fixed assets
Sale proceeds on disposal                      -                      69                       70
of fixed assets
                                                    (2,660)                 (3,563)                  (6,328)
Equity dividends paid                               (1,602)                   (550)                  (1,351)

Net cash inflow before                               11,264                 (1,457)                    1,527
financing

Financing
Capital element of                                    (135)                      -                    1,006
finance lease payments

Issue of new shares                                       -                   (279)                    (280)
including share premium
less cost of issue

Net cash inflow/(outflow)                        11,129                  (1,736)                       2,253





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