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FLUXX aiming for return to profitability in 2008

FLUXX AG / Final Results

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FLUXX aiming for return to profitability in 2008

- Revenues up 45 percent in 2007 to EUR 73.9 million 
- EBITDA reaches record level of EUR 6.5 million
- Investment in international business eats into consolidated earnings   

Altenholz, March 27, 2008 – The gaming specialist FLUXX AG (ISIN
DE000A0JRU67) today presented its accounts for 2007. According to the
figures released today, the revenues of the FLUXX Group in 2006 showed a 45
percent rise on the prior-year period, to EUR 73.9 million. The Sports
Betting segment made the biggest contribution to continuing strong growth.
The former core business area of online lottery agency operations lost
further ground due to the tightening of legislation in Germany, though the
record-breaking jackpot in the fourth quarter of 2007 and the Spanish
Christmas lottery generated above-average ticket sales for the lottery
channels operated by FLUXX. However, FLUXX took the opportunity to step up
promotional activities aimed at new customers during this phase, with the
result that marketing costs simultaneously rose.

Due to the much more difficult legal framework in the German market, FLUXX
increasingly invested in European expansion in 2007, prompting higher
expenditure and investment outlay. In particular the expenditure
necessitated by the market entry of FLUXX subsidiary JAXX in the UK
diminished the result for the fourth quarter and were a major factor in
that period again closing with a loss, albeit a lower one than previous
quarters. The consolidated loss of EUR -5.7 million for 2007 as a whole was
nevertheless significantly lower than in the previous year (EUR -8.7
million). The disposals of assets originally planned for the fourth quarter
did not take place; this would have made a significantly better result
possible. Negotiations with potential partners are continuing in 2008.

Earnings before interest, tax, depreciation and amortisation (EBITDA)
consequently showed an marked improvement and reached EUR 6.5 million in
the 2007 financial year. EBITDA was EUR 0.5 million in 2006. Depreciation
and amortisation rose sharply from EUR 6.4 million in 2006 to EUR 11.4
million in 2007 as a result of capitalisation of the acquisition costs for
lottery syndicate contracts and of the installation of lottery terminals.
Earnings before interest and taxes (EBIT) improved from EUR -5.9 million in
2006 to EUR -4.9 million in 2007.

Outlook

The 2008 financial year will see the FLUXX Group diversify its product
range and markets. Agency operations on behalf of the German lottery
organisation – hitherto the core business area of the FLUXX Group – will
become increasingly marginal in importance as a result of the State Treaty
on gaming. Providing sports betting, horse betting, casino and poker
throughout Europe will acquire growing significance for both sales and
earnings. The FLUXX Group can already describe itself as independent of the
German market. It will continue to build on this position.

At operating level, the focus will therefore be on developing its UK
business and expanding its activities in the Spanish market so that it
reaches profitability in the first quarter of 2008. The sports betting
subsidiary QED (myBet.com) has already entered the profit zone in the first
two months of the current financial year by almost half a million euros
and, bolstered by steadily rising profitability, is now to access new
markets in Southern and Eastern Europe.

Through the equity interest in SPORTWETTEN.DE AG, which has now reached 60
percent, considerable synergy potential will be identified and tapped
during the current year. On this basis, the Management Board expects that
it will be possible to boost earnings by almost two million euros in the
very first year.

From a regulatory viewpoint, the European gaming market is still in a state
of flux. A trend towards liberalisation is already emerging in certain
member states such as France, while others such as Spain have already
reached the stage of issuing licences to independent operators. The current
picture in Germany resembles that which prevailed prior to the ruling of
the Federal Constitutional Court in March 2006. Although the State Treaty
on gaming and its implementing statutes have taken effect, individual
regional councils are evidently doubting their legal enforceability and are
suspending court orders and rulings with reference to the conflicting
European legal position. Administrative courts in Cologne (North
Rhine-Westphalia), Giessen (Hesse), Stuttgart (Baden-Württemberg) and
Schleswig (Schleswig-Holstein) have likewise doubted their compatibility
with EU law and referred the matter to the ECJ for clarification.

It is therefore to be expected that a great many services, including in the
sports betting market, will remain on offer in Germany as a result of the
legal position remaining ambiguous and the authorities' restrained
approach.

It is entirely possible that the ECJ will announce its verdict on the
German gaming market in the course of the current 2008 financial year.
Whether the entire State Treaty on gaming will be brought down this year
remains uncertain.

From an economic viewpoint, the Management Board of FLUXX AG expects the
growth rate for the 2008 financial year to remain in double figures,
coupled with a clearly positive result. For all the uncertainties brought
on by the State Treaty on gaming, growth should continue in 2009, albeit at
a slightly slower rate, and there should be a palpable rise in
profitability.

 Key figures for 2007


                                2007           2006           Change
                                EUR '000       EUR '000       %
Gross sales                     142,776        127,716        +11.8 %
Betting stakes                   68,925         76,795        -10.3 %
Revenues                         73,851         50,921        +45 %
EBITDA                            6,511            533     +1.122 %
EBIT                             -4,876         -5,886        +17 %
Consolidated earnings            -5,699         -8,740        +35 %
Earnings per share (EUR)          -0.38         -0.57
                                31/12/2007     31/12/2006
Net cash                        11,133         15,118
Shareholders' equity            36,093         39,035
Equity ratio                    61.0 %         70.2 %


The full 2007 accounts will be published and available for downloading today on the websites www.deutsche-boerse.com and www.fluxx.com. Contact: FLUXX AG Investor Relations & Corporate Communications Stefan Zenker Tel. +49 (40) 85 37 88 47 Fax +49 (431) 88 10 44 0 Mail stefan.zenker@fluxx.com 27.03.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: FLUXX AG Ostpreußenplatz 10 24161 Altenholz Deutschland Phone: +49 (0)431 88 104-0 Fax: +49 (0)431 88 104-40 E-mail: info@fluxx.com Internet: www.fluxx.com ISIN: DE000A0JRU67 WKN: A0JRU6 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------