Settlement agreement with sellers of Ongame frees bwin from payment of purchase price of EUR 79.9 million including interest

ad-hoc-release of bwin

In connection with the bwin Games transaction (formerly Ongame Group), bwin and the sellers agreed on a deferred consideration with a potential value of EUR 83.0 million including interest as of settlement date.

The introduction of the so-called "Safe Port Act", which also contained several provi-sions of the "Unlawful Internet Gambling Enforcement Act of 2006", effectively prohibited payment transactions in connection with online gaming in the United States. In response to this law, bwin suspended its real-money gaming operations for US customers in the autumn of 2006.

In spring this year, bwin entered into negotiations with the former majority shareholders of bwin Games, who sold 96.3% of the company's shares. bwin has now reached agreement with this group of sellers to the effect that they will waive the purchase price owed amounting to EUR 79.9 million including interest. bwin also intends to enter into talks with the other sellers with respect to the remaining amount of the deferred consideration of EUR 3.1 million.

In return for waiving this claim, this group of sellers will receive 28.89% of the net gaming revenues generated with US customers over a period of five years should bwin reintroduce real-money gaming products for US customers, albeit capped to EUR 79.9 million. Net gaming revenues are defined as the balance of betting stakes and customer winnings less all expenses, such as marketing costs, taxes and duties, commissions to third-party software providers for gaming applications and payment transaction costs, including chargebacks by US customers. Furthermore, the buyers will be released from all remaining lock-up obligations on the sale of the bwin shares which they received as part of the purchase price.

This agreement fully settles the bwin Games transaction with this group of sellers.