Youbet.com Reports Record First Quarter Results as Diluted Net Income Per Share Rises to $0.03; Total Revenue Rises 25.1% To $18.5 Million on Record Quarterly Handle of $88.3 Million

Business Wire, April 29, 2005

WOODLAND HILLS, Calif. -- In the Summary of First Quarter Results financial table, the Net Revenue line is corrected to read as follows:

Summary of First Quarter Results

(in thousands, except per share and           For the three
 percentage figures)                           months ended
                                                March 31,
----------------------------------------------------------------------
                                               2005    2004   % change
----------------------------------------------------------------------
Net revenue (revenues from commissions less
 track and licensing fees)                    $6,126  $5,472     12.0%
----------------------------------------------------------------------

The corrected release reads as follows:

YOUBET.COM REPORTS RECORD FIRST QUARTER RESULTS AS DILUTED NET INCOME PER SHARE RISES TO $0.03; TOTAL REVENUE RISES 25.1% TO $18.5 MILLION ON RECORD QUARTERLY HANDLE OF $88.3 MILLION

Youbet.com, Inc. (NASDAQ: UBET), a leading online wagering company and the largest provider of horse racing content in the United States, today reported net income for the 2005 first quarter of $1.0 million, or $0.03 per fully diluted share, compared to net income of $15,111, or $0.00 per fully diluted share, in the 2004 first quarter.

Summary of First Quarter Results

(in thousands, except per share and           For the three
 percentage figures)                           months ended
                                                March 31,
----------------------------------------------------------------------
                                               2005    2004   % change
----------------------------------------------------------------------
Total wagers (handle)                        $88,251 $71,766     23.0%
----------------------------------------------------------------------
Total revenue (commissions from handle plus
 other revenue)                              $18,515 $14,800     25.1%
----------------------------------------------------------------------
Net revenue (revenues from commissions less
 track and licensing fees)                    $6,126  $5,472     12.0%
----------------------------------------------------------------------
Yield (1)                                        6.9%    7.6%   (9.0)%
----------------------------------------------------------------------
EBITDA (2)                                    $1,105  $1,104      0.1%
----------------------------------------------------------------------
Net income                                    $1,030     $15
----------------------------------------------------------------------
Diluted EPS                                    $0.03   $0.00
----------------------------------------------------------------------
(1) Yield is defined as net revenue (commission revenue less track and
    licensing fees) as a percentage of handle. The decline in yield
    for the three-month period ended March 31, 2005 compared to the
    prior year period is primarily due to a change in track mix.

(2) EBITDA is defined as earnings before interest, taxes, depreciation
    and amortization. A reconciliation of EBITDA to net income, the
    most comparable Generally Accepted Accounting Principles ("GAAP")
    financial measure, can be found attached to this release.

"The record first quarter results reflect our industry leadership position in terms of product offerings, player services, technology and wagering compliance, all of which contribute to a highly entertaining and trusted experience for our growing customer base," said Chairman and Chief Executive Officer Charles F. Champion. "This industry position, as well as our ongoing commitment to raise the bar in all of these noted areas of our business, is leading to higher levels of handle and improved bottom line results.

"While we expect that our core business will continue to grow at a healthy rate, we are also moving forward on expansion initiatives. To that effect we continue to make progress on completing our proposed acquisition of International Racing Group (IRG). The due diligence process for this acquisition is continuing to move forward and we currently expect to complete this accretive transaction during the second quarter. Importantly, the positive industry responses we have received to date further solidify our belief that this transaction will benefit our shareholders, IRG's customers and our industry partners.

"As the industry leader, Youbet is uniquely positioned to leverage our technology platform, players' services and security programs, wagering compliance protocols and targeted marketing programs into targeted ADW consolidation opportunities. We continue to speak with other domestic ADW providers and remain hopeful that we can make progress on further acquisitions while maintaining our disciplined approach to only consider transactions that we believe would benefit our shareholders with the creation of long-term shareholder value.