ebet's receipts jump 36%

31 July 2003

Strong Growth Continues for eBet Limited
Preliminary Half Year EBITDA Exceeds Recent Market Guidance

June Quarter Customer Receipts Jump 36%

Leading gaming technology group eBet Limited today
said that continued strong sales growth had enabled it to exceed recent revenue and EBITDA guidance. Preliminary (unaudited) results for the Half Year to 30 June 2003 show revenue for the Half of $9,280,000 (guidance $9,000,000) with EBITDA of $1,329,000 (guidance $1,000,000).

The Company released its Appendix 4C Quarterly Cashflow Statement for the June Quarter revealing Customer Receipts of $4,598,000, a 36% increase on the previous strong Quarter. The jump in Customer Receipts was driven by continued improvements in sales
of the Company’s flagship gaming systems products. The Company noted that, whilst Customer Receipts were strong for the Quarter, they did not reflect the full
extent of sales and revenue for the period due to the timing of payments from major sales. It said trade debtors increased by more than $1,000,000 during the
Quarter (to $3,445,000) reflecting the continuing growth in the scale of the Company’s operations and the significant volume of recently completed work
and work-in-progress.

Staff Costs were down 5% to $1,258,000 reflecting the Company’s continuing restructuring and confirming its ability to grow revenue within its existing overhead structure. Advertising and Marketing Costs were limited to $12,000. Other Working Capital more than doubled to $3,061,000 due to significant increases in component and equipment purchases to meet rising sales orders.
Before Interest and Other Financing Receipts and Payments, Operating Cashflow was positive more than $267,000. After these items, including payment
of six months of listed convertible note (ASX: EBTG) interest of $356,000, Net Operating Cashflow was a marginally negative $54,000.

The Company said it used its improving receipts to further pay down debt with Repayment of Borrowings totaling $173,000. It said it also continued its investment in its flagship gaming systems technologies with payments for Investment in Intellectual Property of $154,000, whilst payments associated with Physical Non-current Assets totaled $23,000. Cash on Hand and At Bank was $1,320,000 at the end of the Quarter.