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JAXX starts 2009 with cautious optimism

JAXX AG / Final Results

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JAXX starts 2009 with cautious optimism

- New financial year off to a positive start despite trenchant
- Double-digit sales growth planned
- Detailed forecasts not currently possible due to legal and economic

Altenholz, March 31, 2009 - JAXX AG (ISIN DE000A0JRU67) publishes its 2008
Annual Report today. As previously announced, the effects of the State
Treaty on gaming, which took effect on January 1, 2008, led to an
exceptionally high consolidated loss of EUR 16.9 million. EUR 15 million of
that amount alone is attributable to non-cash write-offs and impairment
which were necessitated by the new regulations that have descended into a
legal wrangle in Germany. The JAXX Group has filed compensation claims
amounting to more than EUR 9.0 million to date.

'We have been vehemently opposing a wave of over-regulation that has been
threatening our home market of Germany,' remarked Mathias Dahms, founder of
JAXX AG and also its new Management Board spokesman from April 1, 2009.
'But the notorious closed-shop deal among those who run the lottery
organisation ultimately meant this trend was unstoppable. It is now up to
EU judges to overturn the new gaming legislation.'

Consolidated revenue up 67 percent

Thanks solely to its prompt expansion into other European countries, the
JAXX Group continues to post steep international growth despite the adverse
conditions in Germany. Consolidated revenue was increased by 67 percent in
the 2008 financial year, to EUR 123.5 million. The lion's share of revenue
was again contributed by Sports Betting, which generated EUR 73.9 million
(+73% compared with 2007), followed by Horse Betting on EUR 25.8 million,
predominantly as a result of the first-time consolidation of
pferdewetten.de AG, and Lottery on EUR 23.8 million (-18%).

'We have been forging ahead with expansion into new markets in order to
make JAXX independent of the German lottery market, mired as it is in red
tape,' added Mathias Dahms. 'And we can now claim to have achieved that
goal.' Over 90 percent of the JAXX Group's revenue came from international
activities in 2008.

Earning before interest, taxes, depreciation and amortisation fell from EUR
6.5 million in 2007 to EUR 6.0 million in 2008 due to the much higher
non-recurring expenses. The increased depreciation and amortisation caused
EBIT to tumble from EUR -4.9 million in the previous year to EUR -10.4
million in 2008.

Record revenue in fourth quarter

The JAXX Group posted the highest quarterly revenue in its ten-year history
in the fourth quarter of 2008. Nevertheless, the extraordinary expense,
depreciation of property, plant and equipment and goodwill amortisation
left a clearly negative EBIT of EUR -9.7 million. After elimination of the
non-recurring effects, EBIT for the fourth quarter was slightly positive at
EUR 0.3 million.

The investments myBet.com (Malta), Digidis (Spain) and pferdewetten.de
(Baden-Baden) established or acquired in an effort to move away from the
German lottery market all posted earnings contributions ranging from the
balanced to the clearly positive. Following its entry into the
strategically significant British market, the subsidiary JAXX UK Ltd. still
reported start-up losses of around EUR 2.0 million.

EUR 4.3 million cash flow from operations

The intact progress at operating level is reflected by the high cash flow
from operations of EUR 4.3 million. At the end of 2008, cash and cash
equivalents after investing and financing activities amounted to EUR 12.9
million (previous year: EUR 13.8 million). The equity ratio at December 31,
2008 was 41.8 percent, with a balance sheet total of EUR 48.6 million.

Meaningful forecast not yet possible

The 2008 financial year will be characterised by the strategic
repositioning of the JAXX Group. While the previous core business will
subside due to the cessation of agency operations for German lotteries,
fresh potential for earnings has been created by moving promptly into new
markets and diversifying the product range.

It was already becoming apparent during 2008 that new products such as the
pan-European lottery 'EuroMillions', the Spanish lotteries as well as
casino and poker products are being well received by users. Other
attractive products such as new betting services from the British
subsidiary JAXX UK Ltd will extend the JAXX Group's product portfolio in
2009. In Germany, JAXX will restrict its activities to state-licensed
products or those not requiring permits.

The JAXX Group in addition continues to look for opportunities to venture
into new markets in Europe, both through organic expansion and through
appropriate acquisitions. The specific focus is on those countries in which
the gaming market is already liberalised or where liberalisation is on the
cards. They include Eastern European countries, but also nations where
gaming is popular, such as Italy and France.

From an economic viewpoint, the JAXX AG Management Board expects revenue
growth to remain in double figures in the 2009 financial year, with the
betting segments again driving this development. While the investments
myBet.com, DigiDis and pferdewetten.de should be able to boost their
profitability in 2009, the successful performance of the remaining
companies in the JAXX Group depends very much on how successfully they are
able to compensate for the loss of online lottery agency business in
Germany with new products.

'The first few weeks of the 2009 financial year have made a positive
impression,' commented Stefan Hänel, Finance Director of JAXX AG. 'But
nobody can say at present how far the economic and financial crisis will
affect our further development. It is not currently possible to make any
meaningful statements on how the financial performance, net worth and
financial position will develop over the next two financial years.'

Key figures

                                 2008            2007            Change
                                 EUR '000        EUR '000        %
Revenues                               123,542          73,851        +67
                Sports Betting          73,930          42,686        +73
                 Horse Betting          25,803           2,085     +1.138
                       Lottery          23,809          29,081        -18
EBITDA                                   5,958           6,511       -8.5
EBIT                                   -10,441          -4,876       -114
Consolidated earnings                  -16,922          -5,699       -197
Earnings per share (EUR)                 -1.06           -0.38
                                    31/12/2008      31/12/2007
Monetary holdings                       12,861          13,808
Shareholders' equity                    20,315          36,093
Equity ratio                            41.8 %          61.0 %

The full 2008 accounts will be made available as downloads in the course of today on the websites www.deutsche-boerse.com and www.jaxx.ag. About JAXX: JAXX AG is one of the leading specialists in the European gaming market. From lottery, casino and poker to sports and horse betting, the companies that make up the JAXX Group offer the most popular forms of state-licensed gaming via online platforms such as www.jaxx.com, www.myBet.com and www.pferdewetten.de. Integrity, customer centricity and reliably handled transactions are the top priority in every case. The JAXX Group has operations in Germany, the UK, Spain, Austria and Malta, and currently has around 190 employees. The shares of JAXX AG have been traded at Deutsche Börse since 1999 under ISIN DE000A0JRU67. 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 31.03.2009 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 Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------