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good earnings update from e bet

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    Market Update

    Document date: Wed 18 Jun 2003 Published: Wed 18 Jun 2003 09:46:43
    Document No: 298434 Document part: A
    Market Flag: Y
    Classification: Periodic Reports - Other

    HOMEX - Sydney

    Leading gaming technology company eBet Limited (ASX/NZSE: EBT)
    ("eBet") today provided a market update on its anticipated revenue
    and EBITDA for the Half Year to 30 June 2003.

    The Company said it would achieve group revenue to around $9.0
    million for the Half (nearly three times the prior Half), with
    positive group EBITDA in excess of $1.0 million. This compares to
    First Half group revenue of $3.1 million and EBITDA of negative $1.8

    Around $5.4 million of the group revenue result of $9.0 million for
    the Half will fall into the April-June Quarter, demonstrating the
    growth momentum now being achieved.

    This significant turnaround in sales and profitability has been
    driven by the Company's acquisition of the Turbo Bonus business and
    the NSW gaming industry's acceptance of its card-based gaming system

    Earlier this year the Company provided market guidance that
    anticipated group revenue for the Half would reach $11.0 million,
    with anticipated EBITDA of $3.55 million. The Company said that the
    variance was due largely the timing of installations and the
    completion of "deliverables" associated with some sales orders, which
    would contain bookable revenue for the period.

    The Company highlighted the following achievements for the Half Year

    * Its Gaming Systems Division has achieved new system sales (15
    venues) and major system upgrades (10 venues) to more than 25 leading
    NSW venues, representing more than 4,600 machines.

    * Gross sales orders for the gaming systems division will reach
    around $9 million for the Half Year, up from less than $2 million in
    the First Half.

    * Around $7 million of these orders will be reflected in the
    Company's group revenue for the Half, with the balance reflected in
    the First Half of FY2004. This will also impact gross margins and
    therefore EBITDA for the period.

    * The above sales orders, once all deliverables have been completed,
    will increase gaming systems recurring revenue (expected to be $1.4
    million for FY2003) by around $800,000 per annum.

    * The Online Division will contribute approximately $2 million to
    group revenue for the Half Year, up from $1.4 million in the First
    Half, through significant improvement in the performance of its
    sports and racing betting business, Sports Acumen.

    * Significant restructuring has enabled the Company to contain group
    expenses (including payroll) for the Half at $4.0 million, to be in
    line with their "pre Turbo acquisition" levels. This represents a
    reduction in combined expenses (eBet + Turbo) of around $750,000 for
    the Half.

    * The Company expects to maintain and improve upon the above growth
    as its gaming systems division continues to build momentum in NSW,
    and later elsewhere.

    The Company said that, while bookable revenue will fall below that
    anticipated earlier in the year, it is pleased with the significant
    value that is now being realised from its acquisition of Turbo and
    the roll out of EPS.

    New sales and major upgrades to 4,600 machines in NSW have driven the
    substantial revenue improvements. However, with a market exceeding
    100,000 machines in NSW, the Company considers that it has further
    significant growth potential. Additionally, the Company is continuing
    with its international expansion plans.

    In concluding its market update, the Company said that it would
    conduct a review of its intangible asset carrying values and
    depreciation schedules as part of its Full Year audit process. The
    Company will be in a position to provide an accurate estimate of the
    net profit for the Half or Full Year after this review.

    It said that a number of one-off write-downs would be considered in
    consultation with its auditors. This will ensure that the Companys
    balance sheet accurately reflects the significant evolution of its
    business over the past 12 months and that the Company is positioned
    for positive bottom line performance for FY2004.

    Further Information: Keith Cullen

    02 8748 8000

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