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EU Commission expresses strong reservations about State Treaty on gaming

FLUXX AG / Miscellaneous

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

Altenholz, March 23, 2007 – In the course of the notification process the
EU Commission has expressed strong reservations about the lawfulness of the
planned State Treaty on gaming. In particular, it deems the blanket ban on
the holding and arranging of gaming on the internet as disproportionate and
not compatible with European Community law. In its criticisms, it states
that a complete ban on lotteries and sports betting on the internet is not
suitable as a means of achieving the goals of combating gambling addiction
and protecting minors.

In its statement of position, the EU Commission expressly refers to the
so-called 'Placanica ruling' of the European Court of Justice last week,
when the ECJ criticised restrictive, discriminatory rules on sports betting
in Italy. This ruling can thus be applied directly to Germany.

The Commission has expressed considerable reservations about the
appropriateness of the State Treaty. The draft of which it has been
notified would be applied to lotteries and sports betting, but not to
gaming, where the risk of gambling addiction is much greater. Forms of
gaming with high potential for addiction, such as slot machines and horse
betting, are for example not covered by the ban.

The Commission moreover establishes that the requirements for the
protection of players referred to in the draft can be met not just by state
providers, but by all providers using the internet.

The notification procedure applied exclusively to the internet. The
Commission has nevertheless announced that it will critically scrutinise
other aspects of the State Treaty with regard to their appropriateness, the
freedom from discrimination against private operators and the
proportionality of the restrictive regulations in the State Treaty. The
federal states consequently expect to be on the receiving end of further
extensive criticisms during the next few weeks. The legislative procedure
in Germany must be suspended for at least one more month.

As part of the notification procedure, the EU Commission has considered in
depth the situation of international gaming companies in Germany. Austria
and the United Kingdom had also submitted statements of position.

Rainer Jacken, Management Board spokesperson of FLUXX AG, remarked: 'We now
have it officially. If the State Treaty takes effect from January 1, 2008
as planned by most federal states, Germany risks renewed infringement
proceedings and then an action before the European Court of Justice. The
state leaders now have a final opportunity to consider alternative models
and arrangements that conform to EU law.'

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 23.03.2007 
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