SOURCE: Press Release

888, one of the world's most popular online gaming entertainment companies, is pleased to provide the following trading update for the first quarter of 2008.

Highlights

* Net Gaming Revenue ('NGR') up 38 percent to US$64 million (Q1 2007: US$47 million)
* Total Operating Income up 41 percent to US$66 million (Q1 2007: US$47 million)
* NGR from casino up 35 percent to US$35 million (Q1 2007: US$26 million)
* NGR from poker up 5 percent to US$22 million (Q1 2007: US$21 million)
* 27 percent increase in real money registered customer accounts to 4.9 million as at 31 March 2008
* Further growth at start of Q2 driven primarily by casino and bingo

Key Performance Indicators

* NGR up 38 percent to US$64 million (Q1 2007: US$47 million) and 3 percent above the previous quarter
* Total Operating Income up 41 percent to US$66 million (Q1 2007: US$47 million), a 2 percent increase above previous quarter
* Net Gaming Revenue from casino up 35 percent to US$35 million (Q1 2007: US$26 million), in line with the previous quarter given the exceptionally high Casino performance in Q4 2007
* Net Gaming Revenue from poker up 5 percent to US$22 million (Q1 2007: US$21 million) and 2 percent increase above previous quarter
* Net Gaming Revenue from Emerging Offering reached US$8 million (Q1 2007: nil) and 23 percent increase above previous quarter
* Number of active customers in casino and poker reached 213,115 an increase of 3.5 percent compared to Q1 2007 and 2 percent above previous quarter
* Number of Casino active customers reached 77,370 an increase of 9 percent compared to Q1 2007 and 5 percent above previous quarter
* Number of Poker active customers reached 170,988 an increase of 2 percent compared to Q1 2007 and 0.3 percent increase above previous quarter
* Quarterly NGR per active Casino and Poker customer reached US$267, an increase of 17 percent compared to Q1 2007 a 1 percent decline from previous quarter as a result of slightly faster increase in active players than NGR increase during the period
* Casino quarterly NGR per active customer reached US$453, an increase of 23 percent compared to Q1 2007 and a 5 percent decline from previous quarter as a result of the exceptionally high Q4 2007
* Poker quarterly NGR per active customer reached US$128, an increase of 3 percent compared to Q1 2007 and 2 percent above previous quarter
* As at 31 March 2008, 888 had 4.9 million real money registered customer accounts, representing an increase of 27 percent in real money customer accounts since 31 March 2007

Current Trading

The first quarter of 2008 started well with 38 percent NGR growth year-on-year and an additional 2.6 percent NGR growth quarter-on-quarter following the exceptionally high Q4 2007.

Growth has continued into Q2 2008, particularly in Casino and Bingo.

During the first 32 days of the second quarter daily average group NGR increased 7 percent, combined Casino and Poker NGR increased 2 percent and first time depositors increased 19 percent, in each case, compared to the daily average in Q1 2008.

Given the positive start to 2008, the successful launch of 888ladies, 888sport and Live Dealer, our strategic partnership deals, current trading and our clear business strategy and focus, we are confident of delivering future growth during 2008.

Material Events, Transactions and Financial Position

There have been no material events, transactions or changes in the financial position of 888 since the year end other than as set out above.

Commenting on today's announcement, Gigi Levy, Chief Executive Officer, said:

We are delighted with our Q1 2008 results especially given that we achieved further growth in the quarter well and above the unusually high Q4 2007. Our growth has continued into Q2, driven particularly by Casino and Bingo and so far we have not experienced any impact of the historically quieter seasonal period. Our various business initiatives are progressing well and we are therefore confident in delivering future growth during 2008.