“bwin.party will create the world’s largest listed online gaming business”

This is a transformational merger for both bwin and PartyGaming that will create the world’s largest listed online gaming business with market-leading positions in poker, sports betting, casino and games which includes bingo. Our business mix by territory and by product is also extremely well balanced. When we are merged, bwin.party will have some of the best brands and products in the market; some of the best people in the industry; and we also have a cash flow generation capability and a balance sheet that will support our future plans.

The headquarters for bwin.party will be in Gibraltar, which in turn is the home of the internet champion of online gaming. The breadth, depth and quality of our products and brands clearly demonstrate that both organisations harbour a deep pool of talent. Both businesses have been built on innovation and we plan to stretch ourselves even further through the creation of a dedicated innovation lab that will be responsible for:

•    delivering best customer experience in our core brands;

•    leveraging market-leading B2C offer in all four of our market-leading product verticals;

•    developing new games and related products; and

•    capitalising on the latest technological trends and developments.

As of 31st March 2011 shares in bwin.party digital entertainment will begin trading on the London Stock Exchange under the ticker symbol BPTY. Trading in bwin shares will cease on the Vienna Stock Exchange.

This merger will put us in a strong position to take advantage of a wealth of opportunities that are likely to emerge over the next few years as more markets regulate and the industry inevitably consolidates. Both PartyGaming and bwin have achieved a great deal in a relatively short space of time. However, online gaming is now entering a fresh stage of development where operational and financial scale will be of even greater importance in what will be a more complex regulatory and competitive landscape - the goalposts are shifting and the game is changing.

Our merger will put clear water between us and our competitors. We will have a well-balanced revenue base whether measured by product, territory or channel and one of the largest pools of player liquidity in online peer-to-peer games and sports betting. Strategically and operationally we will be better positioned to expand in and into regulated markets and become the operator of choice across all products for players, corporate B2B customers as well as governments.

Strategically bwin.party will be focused on regulated and to-be regulated markets; investing in our brands and our technology, which we see as key drivers for our success; establishing long-term partnerships through B2B and also sports organisations; leveraging or looking to leverage our existing infrastructure to develop new revenue streams; and last but not least, we will continue to act responsibly.