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FLUXX AG boosts revenue by 132 percent in 2006

FLUXX AG / Final Results

Release of a Corporate-announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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FLUXX AG boosts revenue by 132 percent in 2006

- Sports betting pushes up revenue to a record-breaking EUR 50.9 million
- Unclear legal framework necessitates revision of long-term plans
- Legal consultancy costs and lobbying activities diminish earnings

Altenholz, March 2, 2007 – The gaming specialist FLUXX AG (ISIN
DE000A0JRU67), Altenholz, near Kiel, increased its revenue for 2006 by 132
percent to EUR 50,921 thousand, from EUR 21,952 thousand in the previous
year, according to provisional, unaudited figures. This growth was
consequently slightly above the target corridor of 110 to 130 percent. The
provisional consolidated result for 2006 was EUR -3,164 thousand, and thus
within the forecast bandwidth of EUR -2.5 to -3.5 million. In 2005, FLUXX
posted consolidated earnings of EUR 1,719 thousand.

The unclear legal framework in particular in the German gaming market is
forcing the FLUXX Group to review its long-term plans. The resulting need
to amortise the deferred tax assets in part is currently the topic of
consultations with the auditors of the annual accounts. Depending on the
outcome of the discussions, the final net result for the year may have to
be adjusted quite substantially. A reduction for impairment on deferred tax
assets would, however, have no impact on cash flow. The question of whether
this reduction for impairment is to be netted income-neutrally against
shareholders' equity or to be reflected in the income statement is moreover
still to be decided.

The strong growth was driven by the Sports Betting segment, which managed
to post revenue of EUR 29.3 million despite the adverse conditions in
Germany. In the previous year the revenue of the Maltese QED Ventures Ltd.,
which offers the sports betting product 'myBet.com' and became part of the
FLUXX Group at the start of 2006, was only EUR 2.2 million.

On the other hand revenue from lottery agency business stagnated due to the
political and legal debate surrounding the future form of the German gaming
market. New high-growth projects such as lottery from retail outlets and
business in Spain were unable to compensate fully for the downturn in
revenue from classic agency business via the state lottery companies, which
had closed down their internet services in November. Betting stakes handled
consequently fell year on year by five percent to EUR 76.8 million. The
high growth in the Sports Betting segment, however, boosted gross
consolidated sales by 24 percent to EUR 127.7 million.

A significant rise in expenditure for legal consultancy and lobbying
activities as well as the shift in the cash inflow structure severely
diminished the operating result for the 2006 financial year. Earnings
before interest, tax, depreciation and amortisation (EBITDA) fell from EUR
6,537 thousand in 2005 to EUR 531 thousand in 2006. EBIT fell from EUR
2,335 thousand in the previous year to EUR -5,852 thousand in 2006 due to
higher depreciation and amortisation on syndicate contracts and lottery
terminals. Freely accessible cash and cash equivalents at December 31, 2006
amounted to around EUR 15 million. The downturn compared with the previous
year is substantially due to the financing of the acquisition of myBet.com.
Despite the appreciable rise in expenditure, the cash flow from operating
activities was positive in 2006.

The complete, audited consolidated financial statements for the 2006
financial year will be published on March 29, 2006 at the Annual Press
Conference in Hamburg.

Further information from:

FLUXX AG
Investor Relations & Corporate Communications
Stefan Zenker
Tel.: +49 40 853788–47
Fax: +49 431 88104–40
email: stefan.zenker@fluxx.com 


DGAP 02.03.2007 
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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
www:          www.fluxx.com
ISIN:         DE000A0JRU67
WKN:          A0JRU6
Indices:      
Listed:       Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart
 
End of News                                     DGAP News-Service
 
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