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FLUXX steps up independence from German market

FLUXX AG / Half Year Results

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FLUXX steps up independence from German market

- High growth for FLUXX AG international subsidiaries
- First-half revenues rise by 33 percent to EUR 31.3 million
- EBITDA reaches record level, EBIT diminished by investment

Altenholz, August 9, 2007 – The gaming specialist FLUXX AG (ISIN
DE000A0JRU67) today publishes its report on the first half of 2007. The
FLUXX Group has nevertheless already successfully stepped up its activities
in other European countries. A significant proportion of sales, e.g. by the
group's Maltese subsidiary QED Ltd., which operates the sports betting
service myBet.com, is now generated outside Germany. FLUXX has moreover
established highly promising subsidiaries in attractive, regulated markets
in the guise of its Spanish subsidiary DigiDis S.L. and also JAXX UK Ltd.,
which was established in the UK at the end of 2006.

The successful shift in strategy is also reflected in the sales and cash
inflow structure of the FLUXX Group. Strong growth in the sports betting
and lottery syndicates product areas boosted revenue by 33 percent compared
with the first half of 2006, from EUR 23.5 million to EUR 31.3 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA)
consequently showed an markedly overproportional rise of 227 percent, from
EUR 1.2 million to the record level of EUR 3.9 million. On the other hand
depreciation and amortisation of EUR 6.0 million, predominantly as a result
of focused investment in the much-expanded syndicate contracts portfolio,
diminished earnings before interest and tax (EBIT), which was around 40
percent down on the  prior-year figure of EUR -1.6 million at EUR -2.2
million. The doubling in the level of contracts compared with the previous
year assures future earnings and a high cash flow running into the
double-digit millions. The consolidated result in the first half of 2007
amounted to EUR -1.7 million, as against EUR -0.7 million in the first half
of 2006. Earnings per share fell from EUR -0.05 to EUR -0.12.


The possible introduction of controversial draft legislation taking effect
from January 1, 2008 for a new State Treaty on gaming - which is both
unconstitutional and in conflict with European law - has prompted FLUXX to
focus on intensively expanding its business activities in other European

Initial infringement proceedings from German courts on the legal situation
in Germany have already reached the European Court of Justice (ECJ). FLUXX
believes that the ECJ will overturn the monopoly in 2009 at the latest.

Until the situation in the German market has been definitively clarified,
FLUXX will be reviewing its domestic activities in the light of the new
legal situation and holding back with their expansion. However, FLUXX will
be devoting most of its capacity to pan-European expansion. The process of
development that was already embarked on last year for the sports betting
brand myBet.com and the Spanish subsidiary DigiDis is to be further

The subsidiary JAXX UK Ltd. is about to enter the British betting market in
partnership with the leading online marketer AOL, offering a competitive
product range. An additional sales volume of between EUR 20 and 30 million
would appear to be possible over the next two years as a result of JAXX
UK's entry into the British market. UK business should be making a positive
contribution to the result by the start of 2009 at the latest.

FLUXX is furthermore currently conducting specific negotiations with a
number of interesting and profitable companies in the European gaming
market that would represent useful strategic additions to FLUXX AG's
investment portfolio. FLUXX's priority here is to realise additional
potential for profit in the short term and to appreciably improve the price
earnings ratio for FLUXX shareholders through such acquisitions.

In terms of revenue and earnings, FLUXX still expects double-digit growth
that will enable it to break even for 2007 as a whole.

'The developments of the first half of the 2007 financial year prove that
we are on the right track,' remarked Stefan Hänel, Finance Director of
FLUXX AG. 'We have paved the way for expanding our business successfully in
the face of a more challenging regulatory framework in Germany. By securing
access to new markets elsewhere in Europe, we are gradually gaining
independence from the legal chaos that has broken out in Germany.'

 Key figures for 1st half / 2nd quarter, 2007

                         H1 2007   H1 2006   +/-    Q22007  Q22006  +/-
                         € '000    € '000    %      € '000  € '000   %
Gross sales               59,788    62,111   -3.8   31,938  31,907   +0.1
Betting stakes            28,484    38,635   -26    14,651  17,615   -17
Revenues                  31,304    23,476   +33    17,287  14,292   +21
EBITDA                     3,875     1,184   +227   2,172      303   +617
EBIT                      -2,159    -1,548   -39    -1,367  -1,199   -14
Consolidated earnings     -1,715      -731   -135   -1,078    -747   -44
Earnings per share (€)     -0.12     -0.05          -0.08    -0.05

                         30/06/07  31/12/06
Net cash (incl.           12,240    15,118
Shareholders' equity      37,466    39,035
Equity ratio              72.2 %    70.2 %

The full 2007 First-Half Report will be published and available for downloading today on the websites www.deutsche-boerse.com and www.fluxx.com. About FLUXX: FLUXX is a company specialising in the handling of lotteries and betting, with registered office in Altenholz, near Kiel. The necessary rights and licences and the technical and market-relevant expertise place FLUXX in a position to be able to arrange any form of licensed gaming for consumers, using a variety of sales channels. In addition to the self-marketed services jaxx.de, jaxx.com, myBet.com and Telewette, FLUXX makes its products and services available to other companies and organisations with extensive customer contacts. These include the online services AOL, Freenet, Lycos and Yahoo! Espana, the pay TV station Premiere, the publisher Burda and the lottery companies in the states of Schleswig-Holstein, Brandenburg and Mecklenburg-Western Pomerania. FLUXX AG has been listed on the Frankfurt Stock Exchange (Deutsche Börse) since September 1999 (ISIN DE000A0JRU67); the group currently has 145 employees. 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 DGAP 09.08.2007 ---------------------------------------------------------------------- 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 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------