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29 July 2010

PartyGaming News: Proposed Merger of PartyGaming Plc (‘PartyGaming’) and bwin Interactive Entertainment AG (‘bwin’)

PartyGaming News: Proposed Merger of PartyGaming Plc (‘PartyGaming’) and bwin Interactive Entertainment AG (‘bwin’)

Highlights

Creation of the world’s largest listed online gaming business

Market leading positions in all key verticals of online poker, sports betting, casino and games (in particular bingo)

Pro forma 2009 net gaming revenue of €682 million and EBITDA of €196 million, before synergies

Estimated annualised synergies of approximately €55 million

Proposed Merger is expected to be significantly earnings enhancing for both companies pre-amortisation

Enlarged Group to be owned approximately 48.36 per cent. and 51.64 per cent. by PartyGaming and bwin shareholders respectively and will be listed on the London Stock Exchange

Jim Ryan and Norbert Teufelberger to be Co-Chief Executive Officers of the Enlarged Group

Irrevocable undertakings in support of the Proposed Merger have been received from shareholders currently holding 28.5 per cent. and 14.4 per cent. of PartyGaming and bwin’s existing issued share capital respectively

Commenting on the Proposed Merger, Jim Ryan, Chief Executive Officer of PartyGaming said:

"This is a transformational opportunity for both our companies to create the world’s largest listed online gaming business. With market-leading positions in poker, sports betting, casino and games (in particular bingo), the Enlarged Group will have a winning formula to exploit the growing online gaming market, supported by a strong balance sheet, significant cashflow generation and a highly experienced management team."

Commenting on the Proposed Merger, Norbert Teufelberger, Co-Chief Executive Officer of bwin said:

"This merger of equals makes great strategic, operational and financial sense. We will be in pole position to capitalise on the wealth of opportunities that will flow from the continued evolution and expansion of the global online gaming industry."

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