Tipp24 AG / Final Results

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• Record jackpot boosts customer figures
• UK market entry 
• Outlook influenced by State Treaty on Gaming

Tipp24 can look back on a successful fiscal year 2007, during which its
customer base grew by 574 thousand to 2.34 (prior year: 1.77) million. The
main driver was Germany’s highest-ever lottery jackpot (EUR 43 million). On
the day of the record jackpot draw alone, some 42 thousand new customers
registered on the German website of Tipp24 AG (www.tipp24.de) and around
350 thousand in the fourth quarter alone. According to our own
calculations, this enabled us to raise our share of the German online
lottery market to over 60 percent.

Against this backdrop, billings – consisting mainly of brokered lottery
tickets – rose to EUR 346.8 (264.2) million in the past fiscal year,
representing growth of 31.2 percent. Revenue climbed 30.1 percent to EUR
45.0 (34.6) million. Earnings before interest and taxes (EBIT) improved by
23.5 percent to EUR 8.9 (7.2) million. The company plans to pay its first
dividend of EUR 0.50 per share. This is expected to mark the start of
regular dividend payments.

State Treaty on Gaming contravenes valid law

Jens Schumann, founder and Executive Board member of Tipp24 AG, states:
'Tipp24’s performance is all the more remarkable considering the adverse
circumstances we faced in 2007. In the fourth quarter, Germany’s state
parliaments ratified the new State Treaty on Gaming. It came into effect on
January 1, 2008. Numerous legal experts and institutions, such as the
Federal Cartel Office, the EU Commission and the Scientific Services of the
state parliament of Schleswig-Holstein, believe that the State Treaty on
Gaming contravenes constitutional, antitrust and EU law. We unreservedly
share this opinion. Initial verdicts of Germany’s administrative courts
confirm this.'

Expansion of foreign business – launch in UK

Tipp24 entered the UK market in November 2007 offering European lotteries
at its website www.mylotto24.co.uk: the company’s wholly-owned subsidiary
MyLotto24 Ltd. gives UK citizens the possibility to bet on the outcome of
European lotteries. MyLotto24 Ltd. operates its business on the basis of a
UK licence. Following Germany, Spain and Italy, Tipp24 is now represented
on a further major European gaming market and thus continues to reduce its
reliance on the German market.

Tipp24 also established an international data centre in London during the
past year, which replaces its current server locations in Hamburg. Compared
with the previous locations, the new UK centre offers greatly improved
connections to major international internet nodes.
 
Successful start to 2008

• Beginning of Corporate Responsibility activities

In February, Tipp24 launched a new education project: generation@. The
company regards this pilot project as the start of activities in the field
of Corporate Responsibility. Together with its partners BürgerStiftung
Hamburg and Genety e.V., Tipp24 is committed to promoting safe use of the
internet for young people.

•  Foundation of Tipp24 Entertainment AG 

In March 2008, Tipp24 AG acquired the assets of Enter.TV GmbH, an
innovative supplier of skill-based games. The company is thus pursuing its
strategy of expanding its product portfolio in its core German market with
the addition of new product areas. The company impressed the Executive
Board with its excellent technology, skilled team and interesting product
portfolio. The company offers interactive peer-to-peer and multiplayer
online games. The new products will be integrated during the course of
2008.

Outlook 

Due to the considerable uncertainties of the legal parameters for online
lotteries, Tipp24 has issued a modest outlook for the fiscal year 2008: the
Executive Board expects growth of at least 100 thousand new customers and
thus growth in billings, revenue and EBIT of at least ten percent. These
figures are thus well below the growth expectations of the past few years.

Following the current transition phase of the European lottery markets, the
company expects a return to its historically proven medium-term growth
targets – an annual increase in revenue of 30 percent and a
disproportionately stronger increase in EBIT.

About Tipp24 AG: Tipp24 was established in 1999 and is now the market
leader for lottery products in the Internet on the basis of billings. The
company has succeeded in achieving impressive growth rates right from the
start. Almost all state lottery products are supplied. It only takes a few
mouse clicks to buy a lottery ticket – round the clock, quickly and
reliably. The ticket receipt is kept safely, winners are notified about
their prizes automatically by text message and e-mail and prizes are
credited automatically. Subsidiaries of Tipp24 (www.tipp24.de) are
Ventura24 in Spain (www.ventura24.es), Puntogioco24 (www.puntogioco24.it)
in Italy and MyLotto24 (www.mylotto24.co.uk) in the UK. Shares in Tipp24 AG
have been traded at the Frankfurt Stock Exchange since 2005.


Tipp24 AG       
Andrea Fratini       
Head of Media and Public Relations   
Tel.: +49 40 32 55 33-660 
Fax: +49 40 32 55 33-5600  
E-mail: presse@tipp24.de     
Internet: www.tipp24.de/presse/  



27.03.2008  Financial News transmitted by DGAP
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Language:     English
Issuer:       Tipp24 AG
              Straßenbahnring 11-13
              20251 Hamburg
              Deutschland
Phone:        +49 (0)40 325533-0
Fax:          +49 (0)40 325533-77
E-mail:       office@tipp24.de
Internet:     www.tipp24-ag.de
ISIN:         DE0007847147
WKN:          784714
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
 
End of News                                     DGAP News-Service
 
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