Final Results

Cubus Lux plc
26 June 2006

                                                                    26 June 2006


                                 Cubus Lux plc

                              Preliminary Results


Cubus Lux plc, the Croatian leisure and tourism company, announces final results
for the 12 months ended 31 December 2005.

Cubus Lux plc currently operates three casinos in Croatia, where it is the
second largest casino operator. In March 2006, Cubus Lux acquired Plava Vala,
which owns a licence to build and operate a marina under the brand name Olive
Island Marina, on the island of Uglijan, Croatia.

Highlights in the period:

  • Management restructuring with the appointment of Gerhard Huber as
    Executive Chairman and Michael Janssen as non-executive director

  • Opening of third casino in Narcis Hotel in Rabac

  • Development of casino junkets business

Since the year end:

  • Reverse takeover - acquisition of Plava Vala which owns a licence to build
    and operate a marina under the brand name Olive Island Marina

  • Placing raised £1,025,000 for working capital and to fund future strategy

  • Phase 1 of Olive Island marina construction almost complete - semi
    operational with first berths already occupied

  • Extensive marketing programme for existing casinos bearing fruit with
    improvement in junkets business in recent months


Gerhard Huber, Executive Chairman of Cubus Lux, commented:

'Cubus Lux has seen much change over the year transforming from a pure casino
business into a leisure and tourism company.  The acquisition of Plava Vala has
created a three pillar strategy of casinos, marinas and other leisure
opportunities such as hotels and golf courses and this sets us on our way to
achieving our goal of becoming the pre-eminent tourist and leisure business in
Croatia.

'We are pleased to announce that the recent marketing initiatives implemented in
the casino junkets business are now coming to fruition and we are starting to
see very encouraging signs in this area.  We are also delighted to receive our
first customers to the Olive Island Marina which has almost completed its phase
1 of construction.'



For further information please contact:

Cubus Lux Plc
Gerhard Huber, Chairman: 07900 683 683

Corporate Synergy
Oliver Cairns/ Romil Patel, Corporate Finance: 020 7448 4400

Threadneedle Communications
Graham Herring/Alex White, Financial PR: 020 7936 9605/07793 839 024



Chairman's statement

I am pleased to submit results for the twelve months ended 31 December 2005.

Operations

In the second half of 2005, we took over full control of the wholly owned
subsidiary Cubus Lux doo from the previous management. The local management was
changed entirely, the operation streamlined and a marketing function
established. We brought in a new manager for the casino in Rabac and a new very
experienced overall casino operations manager. We also developed a new IT system
which gives a much clearer and timely picture of our daily results. We are
beginning to see the impact of this by mid-2006.

We were also starting the acquisition of Plava Vala doo to establish the second
pillar of three-pillar strategy for the new Cubus Lux PLC. This transaction was
completed in early 2006.

Financial

For the 12 months ending 31st December 2005, the company is reporting revenues
of £571,000 and net loss of £497,000. Our results are below expectations, due to
an increase in our administrative expenses as a result of operating as a public
company, which was not matched by an increase in revenues due to a below budget
junket business. We have implemented corrective action and we are seeing already
improvements in results in 2006.

The acquisition of Plava Vala doo gave us the opportunity to raise more than
£1,000,000 in equity for working capital for the current operations.

Our plans for the future

We want to reposition the company from a casino operator into the number one
tourist company in Croatia. We want to establish operations which are
complementary to gaming. These may include marinas and hotels especially golf
hotels. The acquisition of Plava Vala, our first marina operation is well
underway and was finalized in early 2006.

We are also in negotiations to take over a development project in order to
complete the repositioning of the company.

If you have any questions please feel free to contact me.


GERHARD HUBER
Chairman
Executive Director




CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                                                   2005          2004
                                                                  £'000         £'000


TURNOVER                                                            571           484

Cost of sales                                                      (70)          (58)
                                                          ------------- -------------
GROSS PROFIT                                                        501           426

Administrative expenses                                           (981)         (886)
                                                          ------------- -------------

OPERATING LOSS                                                    (480)         (460)

Interest payable and similar charges                               (18)           (7)
Interest receivable and other income                                  1            14
                                                          ------------- -------------
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                       (497)         (453)

Tax on loss on ordinary                                               -             -
                                                          ------------- -------------

RETAINED LOSS                                                     (497)         (453)
                                                          ============= =============

LOSS PER SHARE
Basic and diluted                                               (2.15p)       (2.41p)
                                                          ============= =============


All activities arose from continuing activities.





CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                                                  2005          2004
                                                                 £'000         £'000

Loss for the financial year                                      (497)         (453)

Exchange rate movements                                           (20)           (8)
                                                         ------------- -------------

Total recognised losses relating to the year                     (517)         (461)
                                                         ============= =============





CONSOLIDATED BALANCE SHEET
                                                                     2005         2004
                                                                    £'000        £'000

FIXED ASSETS

Tangible assets                                                       590          594
                                                             ------------ ------------

CURRENT ASSETS

Stock                                                                  10            6
Debtors                                                               301           54
Cash at bank                                                          431          385
                                                             ------------ ------------
                                                                      742          445

CREDITORS: amounts falling due within one year                      (740)        (361)
                                                             ------------ ------------
NET CURRENT ASSETS                                                      2           84
                                                             ------------ ------------

TOTAL ASSETS LESS CURRENT LIABILITIES
                                                                      592          678
CREDITORS: amounts falling due in more than one year                (325)        (140)
                                                             ------------ ------------

                                                                      267          538
                                                             ============ ============

CAPITAL AND RESERVES

Called up share capital                                               249          223
Share premium account                                               1,321        1,101
Merger reserve                                                        347          347
Profit and loss account                                           (1,650)      (1,133)
                                                             ------------ ------------
EQUITY SHAREHOLDERS' FUNDS                                            267          538
                                                             ============ ============




PARENT COMPANY BALANCE SHEET
                                                                     2005         2004
                                                                    £'000        £'000


FIXED ASSETS

Investments                                                           319          319

CURRENT ASSETS

Debtors                                                               703          743
Cash at bank                                                           15            5
                                                             ------------ ------------
                                                                      718          748

CREDITORS: amounts falling due within one year                       (83)         (76)
                                                             ------------ ------------
NET CURRENT ASSETS                                                    635          672
                                                             ------------ ------------

TOTAL ASSETS LESS CURRENT LIABILITIES                                 954          991
                                                             ============ ============


CAPITAL AND RESERVES

Called up share capital                                               249          223
Share premium account                                               1,321        1,101
Profit and loss account                                             (616)        (333)
                                                             ------------   ----------

EQUITY SHAREHOLDERS' FUNDS                                            954          991
                                                             ============ ============





CONSOLIDATED CASH FLOW STATEMENT

                                                                2005           2004
                                                               £'000          £'000

Operating loss                                                 (480)          (460)
(Profit)/loss on disposal of fixed assets                        (4)             21
Depreciation                                                     113             61
Increase in debtors                                            (247)           (51)
Increase in stock                                                (4)            (3)
Increase in creditors                                            111             92
                                                      -------------- --------------
CASH OUTFLOW FROM OPERATING ACTIVITIES                         (511)          (340)

RETURN ON INVESTMENT AND SERVICING OF FINANCE
Interest payable                                                (18)            (7)
Interest receivable                                                1             14

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Purchase of fixed assets                                       (120)          (426)
Proceeds from the sale of fixed assets                            15              -
                                                      -------------- --------------
CASH OUTFLOW BEFORE FINANCING                                  (633)          (759)

FINANCING

Issue of shares in Cubus Lux Plc (net of issue costs)            246          1,004
New loans undertaken less repayments                             453             60
                                                     ---------------  -------------
INCREASE IN CASH IN THE YEAR                                      66            305
                                                     ===============  =============




RECONCILIATION OF NET CASH FLOW TO NET FUNDS/(DEBT)
                                                                  2005          2004
                                                                 £'000         £'000

Increase in cash in the period                                      66           305
Exchange differences                                              (20)           (8)
Cash inflow from movement in debt                                (448)          (60)
New finance leases undertaken in year                                -          (24)
Loans converted to shares in Cubus Lux d.o.o.                        -           310
                                                         ------------- -------------
Movement in net funds in the period                              (402)           523

Net funds/(debt) at beginning of period                            232         (291)
                                                         ------------- -------------
Net (debt)/funds at end of period                                (170)           232
                                                         ============= =============




ANALYSIS OF CHANGES IN NET DEBT

                                                                                    At 31
                                      At 1 January         Cash     Exchange     December
                                              2005        flows  differences         2005
                                             £'000        £'000        £'000        £'000

Cash at bank and in hand                       385           66         (20)          431
                                      ------------ ------------ ------------ ------------
                                               385           66         (20)          431
Debt due in less than one year
Finance leases                                 (5)            -            -          (5)
Loans                                          (8)        (263)            -        (271)
                                      ------------ ------------ ------------ ------------
                                               372        (197)         (20)          155
Debt due in more than one year
Finance leases                                (19)            5            -         (14)
Loans                                        (121)        (190)            -        (311)
                                      ------------ ------------ ------------ ------------
                                               232        (382)         (20)        (170)
                                      ============ ============ ============ ============




RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' FUNDS
                                                                     2005            2004
                                                                    £'000           £'000

Loss for the year                                                   (497)           (453)
                                                          --------------- ---------------
                                                                    (497)           (453)

Exchange rate differences                                            (20)             (8)
New shares issued in Cubus Lux Plc (net of issue costs)               246           1,004
New shares issued in Cubus Lux d.o.o. (net of issue costs)              -             310
                                                          --------------- ---------------
Net movement in shareholders'funds                                  (271)             853

Opening shareholders' funds/(deficit)                                 538           (315)
                                                          --------------- ---------------
Closing shareholders' funds                                           267             538
                                                          =============== ===============





NOTES TO THE FINANCIAL STATEMENTS

1. TAXATION

(a) Analysis of charge in the year

    Corporation tax                                                -                  -
                                                  ================== ==================

(b) Factors affecting tax charge for the year

    The tax assessed for the year is different than the standard rate of
    corporation tax. The differences are explained below:

    Loss on ordinary activities before taxation                (497)              (453)
                                                  ================== ==================
    Multiplied by the standard rate of                         (149)              (136)
    corporation tax of 30%

    Effects of:
    Disallowable expenditure                                       -                 28
    Losses carried forward                                       149                108
                                                  ------------------ ------------------
    Current year tax charge                                        -                  -
                                                  ================== ==================
(c) Factors affecting future tax charges

    The directors believe that the future tax charges will be reduced by the
    use of tax losses carried forward in Croatia.


2. LOSS FOR THE FINANCIAL YEAR

The parent company has taken advantage of section 230 of the Companies Act 1985
and has not included its own profit and loss account in these financial
statements. The group loss for the period includes a loss after taxation of
£283,000 which is dealt with in the financial statements of the company.


3.   TANGIBLE FIXED ASSETS                     Leasehold    Plant and
     Group                                      premises    machinery            Total
                                                   £'000        £'000            £'000
     Cost or valuation
     At 1 January 2005                                45          706              751
     Additions                                         6          114              120
     Disposals                                         -         (19)             (19)
                                         --------------- ------------ ----------------
     At 31 December 2005                              51          801              852
                                         --------------- ------------  ---------------
     Depreciation
     At 1 January 2005                                 3          154              157
     Charge for the year                              13          100              113
     Eliminated on disposal                            -          (8)              (8)
                                          -------------- ------------   --------------
     At 31 December 2005                              16          246              262
                                          -------------- ------------   --------------
     Net Book Value
     At 31 December 2005                              35          555              590
                                          ============== ============   ==============
     At 31 December 2004                              42          552              594
                                          ============== ============   ==============

     At 31 December 2005, included within other fixed assets are assets held under
     finance leases with a net book value of £16,480 (2004: £23,539). £6,261
     depreciation (2004: £nil) has been charged on this asset in the year.

     
4.   CASH AT BANK AND IN HAND

     Included within the cash at bank and in hand at 31 December 2005, is 
     £220,000 (2004: £110,000) which is held by the Croatian Ministry of Finance 
     as a bond to cover any large casinos wins.  Cubus Lux d.o.o. is required to 
     keep this bond in place in order to maintain its gaming licence.

     Cubus Lux d.o.o. is also required by law to maintain cash on site of 
     €50,000 and HRK 150,000 at each casino.


6.   LOSS PER SHARE

     The loss per share of 2.15p (2004: 2.41p) has been calculated on the 
     weighted average number of shares in issue during the year namely 
     23,120,334 (2004: 18,772,476) and losses of £496,852 (2004: £453,452).

     FRS 14 does not require the calculation of diluted earnings per share, 
     where the figure would be similar to basic earnings per share.


7.   DIVIDEND STATEMENT

     The Directors do not recommend the payment of a dividend


8.   FINANCIAL INFORMATION

     The annual report will be sent to shareholders in due course. Copies of 
     this announcement and the full statutory accounts are available, free of 
     charge, from the Company's nominated adviser, Corporate Synergy Plc at 30 
     Old Broad Street, London, EC2N 1HT

     The Company's AGM will take place at Vantis Plc, 66 Wigmore Street, London 
     W1U 2SB on Tuesday, 8th August at 11.30am.


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