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Fluxx AG: EU Commission steps up criticism of German State Treaty on gaming

FLUXX AG / Miscellaneous

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
The issuer / publisher is solely responsible for the content of this announcement.

EU Commission steps up criticism of German State Treaty on gaming

Altenholz, May 31, 2007 – In a second statement of position the European
Commission has strongly criticised all key aspects of the draft State
Treaty on gaming proposed by the Federal German states.

Following the examination of the draft by various departments, the
Commission has voiced serious reservations as to the treaty's compatibility
with European Community law.

Whereas the Commission had initially investigated only the ban on the
holding and arranging of sports betting and lotteries over the internet in
its first detailed statement of position in March 2007, describing the
proposal as disproportionate, the EU Commissioners discuss further aspects
of the draft treaty in greater detail in their latest paper.

In particular the Commission has declared the following provisions of the
scheduled State Treaty to be disproportionate and incompatible with the EC

- Restrictions on the free movement of capital, i.e. on methods of payment
- Advertising restrictions, e.g. on the internet, by telephone and on TV
- Limiting of sales outlets and restriction of sales channels, e.g.
over-the-counter sales at supermarkets and filling stations
- Other restraints of competition

The EU Commission has now given the German authorities two months to reply
to the individual points with which it found issue. If the EU Commission is
not satisfied with the reply, it will probably extend the infringement
proceedings already in progress to include the new State Treaty on gaming.
Germany will then face the prospect of a protracted and costly legal
dispute, with unforeseeable fines and considerable compensation claims from
the companies affected.

'The EU has recognised that certain federal states are trying to exploit
their legislative power in the face of superordinate law, not – as is
erroneously and repeatedly claimed – to protect people against gambling
addiction, but to eliminate the competition and corner the economic
advantages of monopolising the market. They won't succeed,' declared Rainer
Jacken, Management Board spokesman of FLUXX AG. 'We await with interest to
see how those responsible will now react to this second, more outspoken
warning from Brussels. To plead ignorance, as they did in their reply to
the EU Commission's first statement of position, will obviously now be
completely out of the question. Because the EU Commission's renewed
directive to subject the draft State Treaty to a thorough review could not
have been clearer. We appeal to all Prime Ministers finally to take control
of the issue and not be ordered about by their own officials and directors
of lotteries.'

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.

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 31.05.2007 
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
www:          www.fluxx.com
ISIN:         DE000A0JRU67
WKN:          A0JRU6
Listed:       Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart
End of News                                     DGAP News-Service