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JAXX AG defies German lottery market with 81 percent growth

JAXX AG / Quarter Results

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JAXX AG defies German lottery market with 81 percent growth 

- Nine-month figures reflect successful growth internationally and chaotic
legal situation in Germany
- Quarterly loss reduced to EUR 232 thousand
- Start-up costs for UK market entry continue to undermine result

Altenholz, November 6, 2008 – The gaming specialist JAXX AG (formerly FLUXX
AG; ISIN DE000A0JRU67) has today published its report on the first nine
months of the 2008 financial year.

The third quarter supplied further evidence of the JAXX Group's growing
independence of the German lottery market, which continues to be badly
affected by the regulatory debate. Whereas the sales handled by JAXX on
behalf of German lottery companies continued to fall, sales from sports and
horse betting and of Spanish lottery product received a considerable boost.

Quarterly revenue rises by 71 percent

Overall, consolidated revenues rose to EUR 28.6 million in the third
quarter of 2008, an increase of EUR 16.7 million or 71 percent on the
prior-year period. For the first nine months of the year, revenues were
actually up 81 percent from EUR 48.0 million to EUR 86.7 million.

Sales in the Sports Betting segment showed a 68.2 percent rise on the
prior-year quarter to EUR 16.7 million. In the nine-month comparison, the
total showed an increase of 80.4 percent to EUR 49.4 million. Nevertheless,
the result for the segment continued to be diminished appreciably by the
development of UK business and by the comparatively low betting margins in
the third quarter.

Sales in the Horse Betting segment reached EUR 20.2 million after nine
months and were generated almost in entirety by SPORTWETTEN.DE AG, which
has been consolidated since the start of the year. In September JAXX AG had
increased its interest in the German market leader for online horse betting
to 65.1 percent.

270 percent growth in Spain

Whereas online lottery sales handled in Germany fell by over 30 percent due
to the effects of the State Treaty on gaming, sales in Spain soared by more
than 270 percent. The start of ticket sales for the Spanish Christmas
lottery in August and new marketing partnerships and syndicate products
offer the prospect of a further rise in the sales figure.

Consolidated earnings before interest, taxes, depreciation and amortisation
(EBITDA) for the first nine months of 2008 were almost 11 percent up on the
prior-year period at EUR 5,671 thousand. EBITDA for the third quarter was
up 41 percent, from EUR 1,243 thousand for the 2007 period to EUR 1,750
thousand in 2008.

Earnings before interest and taxes (EBIT) improved from EUR -4,056 thousand
for the first three quarters of 2007 to EUR –769 thousand for the first
three quarters of 2008. Third-quarter EBIT went up from EUR -1,897 thousand
in 2007 to EUR -232 thousand in 2008. This meant that EBIT was marginally
down on the figure for the second quarter of 2008 (EUR -160 thousand), when
the disposal of syndicate contracts from fixed assets had, however, brought
in additional income. No further contracts were sold in the third quarter.

The consolidated result for the third quarter of 2008 reached EUR -454
thousand, compared with EUR -2,844 thousand for the third quarter of 2007.
For the nine-month period, the result was improved from EUR -4,559 thousand
in 2007 to EUR -1,244 thousand in 2008. SPORTWETTEN.DE AG, which has been
included in consolidation since January, contributed EUR 371 thousand to
the improved result. The loss contributed by the British subsidiary JAXX UK
Ltd. of approx. EUR 1,500 thousand is largely attributable to start-up
investment. Earnings per share amounted to EUR -0.08, compared with EUR
-0.31 in the first nine months of 2007.

Outlook

JAXX AG will in future place even greater emphasis on the development of
business activities beyond the sphere of the German lottery market. The
successful, profitable growth of the investments in the companies myBet.com
(QED), DigiDis and SPORTWETTEN.DE is to be given a further push, while
lottery agency business in Germany will continue to fall, reflecting the
adverse regulatory environment.

In view of the chaotic legal situation, it is not currently possible to
make a serious forecast of how lottery business in Germany will fare.
Following the decision of the Federal Constitutional Court not to accept an
appeal on a constitutional issue, the possibility can no longer be excluded
that business operations in Germany will have to be halted either
temporarily or permanently in certain areas from 2009, and it may be
necessary to test the relevant loss carry-forwards and investments for
impairment.

However, the Management Board expects that business in Spain will already
compensate for a significant portion of the anticipated fall in sales from
lottery agency business in Germany from next year. In view of the higher
margins in the Spanish market, its contribution to earnings may even
outweigh the downturn in Germany.

The sports betting subsidiary myBet.com has made an outstanding start to
the last quarter of the year and already posted record sales in October. In
terms of overall earnings, however, the Sports Betting segment as a whole
will not show a net profit within the JAXX Group because of the significant
start-up losses of the British subsidiary JAXX UK Ltd. It aims to break
even by the start of 2009.

Expenditure for legal consultancy and legal disputes in connection with the
regulatory developments will again impose an additional burden on the
result in the fourth quarter. The Management Board of JAXX AG nevertheless
stands by its expectation of double-digit sales growth for 2008 as a whole,
along with a clearly positive result.

Key figures for 9 months / 3rd quarter of 2008


                       9M/2008   9M/2007   +/-   Q3/2008   Q3/2007   +/-
                       € '000    € '000    %     € '000    € '000    %
Revenues                86,734    48,037   +81    28,630    16,733   +71
EBITDA                   5,671     5,118   +11     1,750     1,243   +41
EBIT                      -769    -4,056   -81      -232    -1,897   -88
Consolidated earnings   -1,244    -4,559   -73      -454    -2,844   -84
Earnings per share       -0.08     -0.31           -0.03     -0.19
(€)

                                       30/09/2008         31/12/2007
                                       € '000             € '000
Cash & cash equivalents                10,125             13,808
Shareholders' equity                   37,260             36,093
Equity ratio                           58 %               61 %

The full 2008 Nine-Month Report will be published and available for downloading today on the websites www.deutsche-boerse.com and www.jaxx.ag. Contact: JAXX AG Investor Relations & Corporate Communications Stefan Zenker Tel. +49 (40) 85 37 88 47 Fax +49 (431) 88 10 44 0 Mail stefan.zenker@jaxx.com 06.11.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: JAXX AG Ostpreußenplatz 10 24161 Altenholz Deutschland Phone: +49 (0)431 88 104-0 Fax: +49 (0)431 88 104-40 E-mail: ir@jaxx.com Internet: www.jaxx.com ISIN: DE000A0JRU67 WKN: A0JRU6 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München, Berlin, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------