Trading Statement

Empire Online Limited
07 July 2005

7th July 2005



                               Empire Online Ltd

                                 Trading Update



Empire Online Limited (the 'Company' or 'Empire Online'), a leading provider of
marketing services to the online gaming industry, today provides the following
trading update for the second quarter of 2005.



During the second quarter of 2005 the Company has continued its planned offline
marketing scheme which has delivered positive results.  The Company is planning
to launch offline campaigns in four more countries during the next six months.



Key highlights include:



  • Strong net gaming revenues estimated at US$25.3 million (Q2 2004:  US$13.8
    million; Q1 2005: US$24.4 million).


  • Estimated poker revenue of US$20.3 million (Q2 2004: US$ 8.3 million; Q1
    2005: US$18.8 million).


  • Estimated casino revenue of US$ 5 million (Q2 2004: 5.5 million; Q1 2005:
    US$ 5.6 million). Decrease is explained by an extraordinary series of
    Jackpots won by the Company's players in excess of US$1 million.



  • Estimated net profit of US$13 million (Q2 2004:  US$7.8 million; Q1 2005:
    US$ 12.4 million)



  • Number of New Real money players acquired by the Company during the second
    quarter (Poker and Casino) was 42,772 (Q2 2004: 22,545; Q1 2005:  49,423).
    The decrease is explained by seasonality in the business.


  • Number of active players (players who played for real money during the
    last 90 days) increased to 126,507 (Q2 2004: 51,367; Q1 2005: 121,642).



  • Number of Average active players per day (Average real money players
    playing during a day for poker and Casino) increased to 17,555 (Q2 2004:
    12,992; Q1 2005: 16,685)



CEO Noam Lanir commented; 'We are pleased with our second quarter performance
which overcame the natural seasonal market decrease in activity and was in line
with our expectations.   We are confident that Empire Online will continue to
deliver strong performance in line with our strategic goals.'



The Company expects to announce its interim results in early August 2005.



For further information:



Empire Online Limited
          [phone]

Noam Lanir, Chief Executive Officer

Yossi Pereg, Chief Financial Officer



Numis Securities                    [phone]

James Black



Citigate Dewe Rogerson              [phone]

Simon Rigby

Sarah Gestetner

Ged Brumby



Notes to Editors



Company overview



Empire Online is a leading provider of marketing services to the online gaming
industry. Through online and offline advertising and other marketing techniques,
the Group directs new players to online poker and online casino websites
operated by third party gaming operators, principally empirepoker.com (a white
label website related to PartyPoker.com, one of the largest online poker rooms)
and Casino-On-Net (part of 888.com, one of the most established online casino
websites). The Company also has arrangements with a subsidiary of PartyGaming to
market other online gaming websites, including AceClub.com and
starluckcasino.com.



The Group's objective is to take advantage of the expected growth of the online
gaming market by generating greater revenues in a cost-efficient manner through
the acquisition of new players and by increasing the activity levels of the
Group's existing players.   The Company aims to pay particular attention to
expanding its player base in certain European countries in the medium term, with
the intention of raising its profile and reducing the Group's reliance on the
North American market. Empire Online will also continue to pursue its existing
strategies in relation to its primary markets of the United States and Canada to
maintain its strong position in these markets.










                      This information is provided by RNS
            The company news service from the London Stock Exchange