ebt on a roll ready or not

Market Update
18/6/03 9:47:00 AM
EBET LIMITED 2003-06-18 ASX-SIGNAL-G

HOMEX - Sydney
+++++++++++++++++++++++++
Leading gaming technology company eBet Limited (ASX/NZSE: EBT)
("eBet") today provided a market update on its anticipated revenue
and EBITDA for the Half Year to 30 June 2003.



The Company said it would achieve group revenue to around $9.0
million for the Half (nearly three times the prior Half), with
positive group EBITDA in excess of $1.0 million. This compares to
First Half group revenue of $3.1 million and EBITDA of negative $1.8
million.



Around $5.4 million of the group revenue result of $9.0 million for
the Half will fall into the April-June Quarter, demonstrating the
growth momentum now being achieved.



This significant turnaround in sales and profitability has been
driven by the Company's acquisition of the Turbo Bonus business and
the NSW gaming industry's acceptance of its card-based gaming system
("EPS").



Earlier this year the Company provided market guidance that
anticipated group revenue for the Half would reach $11.0 million,
with anticipated EBITDA of $3.55 million. The Company said that the
variance was due largely the timing of installations and the
completion of "deliverables" associated with some sales orders, which
would contain bookable revenue for the period.



The Company highlighted the following achievements for the Half Year
to-date:



* Its Gaming Systems Division has achieved new system sales (15
venues) and major system upgrades (10 venues) to more than 25 leading
NSW venues, representing more than 4,600 machines.



* Gross sales orders for the gaming systems division will reach
around $9 million for the Half Year, up from less than $2 million in
the First Half.



* Around $7 million of these orders will be reflected in the
Company's group revenue for the Half, with the balance reflected in
the First Half of FY2004. This will also impact gross margins and
therefore EBITDA for the period.



* The above sales orders, once all deliverables have been completed,
will increase gaming systems recurring revenue (expected to be $1.4
million for FY2003) by around $800,000 per annum.



* The Online Division will contribute approximately $2 million to
group revenue for the Half Year, up from $1.4 million in the First
Half, through significant improvement in the performance of its
sports and racing betting business, Sports Acumen.



* Significant restructuring has enabled the Company to contain group
expenses (including payroll) for the Half at $4.0 million, to be in
line with their "pre Turbo acquisition" levels. This represents a
reduction in combined expenses (eBet + Turbo) of around $750,000 for
the Half.



* The Company expects to maintain and improve upon the above growth
as its gaming systems division continues to build momentum in NSW,
and later elsewhere.



The Company said that, while bookable revenue will fall below that
anticipated earlier in the year, it is pleased with the significant
value that is now being realised from its acquisition of Turbo and
the roll out of EPS.



New sales and major upgrades to 4,600 machines in NSW have driven the
substantial revenue improvements. However, with a market exceeding
100,000 machines in NSW, the Company considers that it has further
significant growth potential. Additionally, the Company is continuing
with its international expansion plans.



In concluding its market update, the Company said that it would
conduct a review of its intangible asset carrying values and
depreciation schedules as part of its Full Year audit process. The
Company will be in a position to provide an accurate estimate of the
net profit for the Half or Full Year after this review.



It said that a number of one-off write-downs would be considered in
consultation with its auditors. This will ensure that the Companys
balance sheet accurately reflects the significant evolution of its
business over the past 12 months and that the Company is positioned
for positive bottom line performance for FY2004.






Further Information: Keith Cullen
MANAGING DIRECTOR



02 8748 8000