Interim Results

Gaming VC Holdings S.A.
25 September 2007




Press Release                                                25 September 2007


                            Gaming VC Holdings S.A.

                          ('Gaming VC' or 'the Group')


                         Interim Results and Q3 update

Gaming VC Holdings S.A. (AiM:GVC), a leading European online gaming operator,
today announces its Interim Results for the six months ended 30 June 2007 and
third quarter outlook for the three months ended 30 September 2007.


Interim Highlights
•   Recommend interim dividend increased 5.3% to €0.20 per share (c.13p) to be 
    paid on 31 October 2007 (H1 2006: €0.19 per share (c. 13p)
•   Turnover increased 3.8% to €22.0 million (H1 2006: €21.2 million)
•   Gross margin 74.1% (H1 2006 73.9%)
•   Operating profit before share option charges increased 20.3% to €8.9 million
    (H1 2006: €7.4 million)
•   EBITDA increased 22.0% to €10.0 million (H1 2006: €8.2 million)
•   Basic earnings per share increased 28.6% to €0.27 (H1 2006: €0.21)


Q3 Business Update
•   On-line marketing maintains player sign-ups reducing customer acquisition costs
•   Renegotiated contract for German market with Boss Media generates cost savings
•   Grant of Maltese gaming licence
•   Successful launch of gaming operations in Italy


Commenting on the results, Adrian Smith, Chairman of Gaming VC, said: 'I am
pleased to report we have delivered on the new direction set out at Kenneth
Alexander's appointment as Chief Executive in March of this year.  We have
successfully laid the foundations and are continuing to improve the Group's
overall profitability and diversification outside of Germany within Europe. Cost
reductions have enhanced first half results and we expect them to continue to
contribute further benefits in the second half of the year.  I look forward to
the performance in Quarter 4 of 2007 from both our new affiliate programs and
the launch of the Italian business.'


                                    - Ends -


For further information:

Gaming VC Holdings S.A.
Kenneth Alexander, Chief Executive                    Tel: [phone]
[e-mail]                                         www.gamingvc.com


Arbuthnot Securities Limited                          Tel: [phone]
Nick Marsh, Corporate Finance
Paul Vanstone, Corporate Finance                  www.arbuthnotsecurities.co.uk


Media enquiries:

Abchurch
Chris Lane / Franziska Boehnke                        Tel: [phone]
[e-mail]                     www.abchurch-group.com



Operating and Financial Review

In the first half of the 2007 financial year, we made significant changes in
order to grow Gaming VC's profitability from the core cash generative German
casino and seek growth outside Germany to reduce the dependence of our
activities on that geographic market.  These changes include:


•   Changing from direct mail to online marketing channels thus lowering the 
    Group's customer acquisition cost

•   Enhancing Customer Relationship Management (CRM) to ensure that the Group 
    manages its customer base to maximise lifetime customer value

•   Diversifying the Group's interests outside of Germany.


The Group has made solid progress with regard to all of the above objectives.

In addition, the turnkey casino operating contract with Boss Media S.A. (Boss)
was renegotiated in June 2007 and has improved the financial performance.
Formerly a fixed price contract, Gaming VC is now on a variable fee dependent on
revenue volumes generated.  It is anticipated that this deal will produce cost
savings of approximately €2 million per annum based on current run rates, and
will deliver material financial benefits in the second half of 2007 and beyond.


New marketing channels and enhanced CRM

In terms of making the core German business more profitable, a significant
change in strategic direction has been the move away from direct mail to online
marketing supported by affiliate networks.  This decision was made after
analysis showed that lifetime value of new customers recruited through direct
mail could not be justified in terms of cost per acquisition.  Direct mail for
recruitment purposes ended in May 2007 and increased resource was given to CRM
with a dedicated team being put in place to maximise value from existing
customers, reduce membership attrition and therefore increase the lifetime value
of new recruits to the casino.

An experienced affiliate marketing team has been recruited, and a new affiliate
marketing system will be fully operational for the beginning of the fourth
quarter of 2007.  The affiliate marketing team will initially be Pan European
and recruit customers throughout European markets to assist with the
diversification plans outside the core German market.

The Group has not only been successful in delivering KPI's ahead of last year as
detailed below, but also significantly reducing the marketing spend, which has
resulted in a positive effect on the profitability of the business.


Casino KPI's                                               H1 2007         H1 2006         H2 2006

New Registrations                                           36,602          26,900          25,872
New Depositing Customers                                    13,623          12,700          10,156
Daily average revenue €'000                                  113.1           112.8            97.6


Poker KPI's                                                H1 2007         H1 2006         H2 2006

New Registrations                                           19,772           9,413          16,544
New Depositing Customers                                    11,513           2,759           9,086
Daily average revenue €'000                                    8.3             3.6             6.6



The ongoing online customer recruitment strategy benefits from focussing on
measurable marketing channels. This allows us to continually refine our approach
and improve the overall effectiveness of our marketing efforts.


Diversification

Gaming VC is diversifying into new territories outside its core German speaking
markets to grow its business and consequently reduce the potential business risk
of adverse legislation in Germany.  In addition, the Group is also extending the
range of online products offered, as well as the demographics of the customer
base.

In order to implement its strategy, Gaming VC has successfully launched an
Italian facing sports book - www.betaland.com and has conditionally acquired two
Italian licences for €1.75 million allowing the Group to take both sports and
horseracing bets.  The Italian business will focus on building up an offline
agents and affiliates network as well as creating a retail online business.

In addition to the strategy of diversifying by territory via the affiliate teams
and the launching of www.betaland.com in Italy, Gaming VC aims to diversify
demographically by launching a female orientated gaming site in Q4 2007.  The
site will lead with a bingo product and offer further soft gaming experiences.

Outside Germany, Casino Club is in positive discussions with an alternative
software provider to use their platform.  This agreement should support the
growth of business through the new affiliate programme as the new platform
offers specific strengths in back end functionality and customers are able to
choose from an attractive blend of the leading games offered by them in addition
to the brand value of Casino Club.


Legislative review

The European Commission continues to bring pressure on the German States over
the new State Treaty on Gambling, which seeks the continuation of the state's
monopoly until 2011, and is in violation of Community law.  Gaming VC continues
its strategy to reduce the impact on the business of any adverse legislation in
Germany through both diversification and the acquisition of online gaming
licenses in other European countries.

Since the end of June 2007, the Maltese Lotteries and Gaming Authority has
authorised Gaming VC to hold gaming licenses' for sports betting, casino games
and poker.  The new Maltese operation went live in August 2007, and will provide
both administrative and technical support for Casino Club.

Malta is also now the base for customer support and market making for the new
Gaming VC Italian gaming site www.betaland.com.


Financial performance

For the six months ended 30 June 2007, the Group achieved a gross profit of
€16.3 million (H1 2006: €15.7 million) with an unchanged margin of 74%.  The
Group EBITDA of €10.0 million (H1 2006: €8.3 million) is an increase of 20.5% on
the corresponding period last year.

The improved financial performance, over the first 6 months of 2007, has
primarily been achieved by cost savings throughout the operation, including the
decision to end direct marketing in May 2007 and concentration of marketing
efforts on retention until the new online marketing strategy is implemented.
This has been successful and resulted in a significantly reduced cost base and
revenues in line both with the prior year as well as with market expectations.

Total gross wagers placed, excluding poker, were €904 million (H1 2006: €787
million), and net revenues were €22.0 million (H1 2006: €21.2 million).  The
gross profit for the first six months of 2007 was €16.3 million (H1 2006: €15.7
million) with the Group's primary cost of service sold being the turnkey online
casino services provided by Boss Media S.A. and its subsidiaries.

In the six months to 30 June 2007 there were no significant one-off jackpot
winners in the Group's slot machine games with associated 'progressive'
jackpots.  The total of the available jackpots at the end of June 2007 was €3.1
million (30 June 2006: €2.2 million) with the largest individual jackpot being
€1.6 million (30 June 2006: €1.2 million).

The Group operating profit for the six months to 30 June 2007 was €8.5 million
(H1 2006: €6.8 million) after net operating expenses of €7.8 million (30 June
2006:  €8.9 million) which consist of distribution and administrative costs.

Distribution costs of €3.2 million (H1 2006: €3.6 million) represent the third
party marketing costs incurred by the Group to recruit active members to the
Casino.  Approximately €2.1 million was related to direct mail campaigns, and
the balance on the Casino-Club magazine, limited email marketing and poker
promotion.  The level of ongoing spend will be significantly reduced following
the withdrawal of the direct mail marketing campaigns which have been replaced
by the increased use of affiliate networks in the third quarter of 2007.

The major items within the administrative expenses incurred for the first half
of 2007 are detailed below:

                                                            6 month period               6 month period
                                                                     ended                        ended
                                                              30 June 2007                 30 June 2006
                                                                     €'000                        €'000

Direct employment costs                                                958                        1,473
Share options charge                                                   430                          636
Legal, accounting and tax                                            1,068                          719
Amortisation of intangible assets                                    1,470                        1,417
Depreciation                                                            17                           17
All other costs                                                        661                          998

Total administrative expenses                                        4,604                        5,260



The reduction in employment costs reflects the run down and final closure of the
direct mail marketing operations in May 2007.  The formation of the Maltese and
Italian operations, the licensing of new software platforms and the acquisition
of the associated gaming licenses all contributed to the increased legal
expenditure in 2007.

The Group has been structured to provide maximum earnings efficiency through the
use of advantageous tax treaties between countries where the Group has
established legal entities.  The result of this is a nil tax charge for the
first six months of 2007 (H1 2006: nil).  The Group periodically reviews all of
the relevant and controlling tax regulations to optimise the available benefits.

The development of both the Italian and Maltese businesses is expected to
increase the overall tax charge of the Group, which will be dependant on the
different rates of growth of the various parts of the Group.  Current forecasts
indicate that an effective tax charge of less than 10% of net profit will be
achieved in 2008.

In the reporting period, the Group generated cash of €9.3 million (H1 2006: €8.9
million) from operating activities.  After payment of the 2006 final dividend of
€6.1 million during the period, the Group's closing cash balance at 30 June 2007
was €12.7 million (2006: €6.3 million).


Dividend

The core business is cash generative and capital which cannot be effectively
redeployed within the Group will continue to be returned to shareholders.  The
business plans discussed above to develop the Italian, Maltese and bingo
operations will require an investment over the next 12 months of €1.9 million in
intangible assets and approximately €3.0 million of business development working
capital.  The Board proposes to pay an interim dividend of €0.20 (c £0.13) per
share (H1 2006: €0.19 (c £0.13)).  This will consume a total of €6.3 million in
cash (H1 2006: €6.0 million).  The dividend will be paid on 31 October 2007 to
holders on the share register at 5 October 2007.


Outlook

Trading volumes and margins in the third quarter to date have been in line with
the same period in 2006.  The cost savings generated from the renegotiated Boss
contract as well the marketing efficiencies from the termination of direct mail
for customer recruitment are expected to enhance profitability in the future.
Gaming VC's new sports book in Italy has seen a positive start with initial
trading in the first few weeks of the Italian football season being encouraging.
With an experienced management team, affiliate marketing and advanced CRM
applications in place, the Group is now in a position to deliver continued good
cash generation from the core German business and profitable growth from other
geographic markets in the fourth quarter and beyond.


Kenneth Alexander                                                   Adrian Smith
Chief Executive                                                         Chairman
25 September 2007



Condensed consolidated interim income statement
For the period ended 30 June 2007

                                                 6 month       6 month    Year ended    Year ended
                                            Period ended  Period ended   31 December   31 December   Year ended
                                            30 June 2007  30 June 2006          2006          2006  31 December         
                                              (Unaudited)   (Unaudited)       before      goodwill         2006
                                                                            goodwill    impairment     (Audited)
                                                                          impairment                  
In thousands of euro

Revenue                                           22,001        21,208        40,573             -       40,573
Cost of Sales                                    (5,707)       (5,523)      (11,158)             -     (11,158)

Gross profit                                      16,294        15,685        29,415             -       29,415
Net operating expenses (including      
exceptional items and share option
charges)                                         (7,811)       (8,877)      (25,075)      (33,274)     (58,349)

Operating profit before exceptional      
items and share option charge                      8,913         7,444        13,505             -       13,505
Share option charge                                (430)         (636)         (893)                      (893)
Exceptional items                                      -             -       (8,272)      (33,274)     (41,546)

Operating profit/(loss) before                   
financing                                          8,483         6,808         4,340      (33,274)     (28,934)

EBITDA                                             9,970         8,242        15,536             -       15,536
Depreciation                                        (17)          (17)          (35)             -         (35)
Amortisation                                     (1,470)       (1,417)      (11,161)      (33,274)     (44,435)

Financial income                                     200            31           163             -          163
Financial expense                                  (139)         (163)          (68)             -         (68)
Net financing income/ (costs)                         61         (132)            95             -           95

Profit/(Loss) before Tax                           8,544         6,676         4,435      (33,274)     (28,839)
Income tax expense                                     -             -             -             -            -
Profit/(Loss) for the period/year                  8,544         6,676         4,435      (33,274)     (28,839)

Profit/(Loss) per ordinary share

Basic earnings per share (euro)                     0.27          0.21                                   (0.93)
Diluted earnings per share (euro)                   0.27          0.21                                   (0.93)

Profit per share before exceptional
items

Basic earnings per share (euro)                     0.27          0.21                                     0.41
Diluted earnings per share (euro)                   0.27          0.21                                     0.41




Condensed consolidated interim statement of recognised income and expense
For the period ended 30 June 2007

                                                                              6 month       6 month    Year ended
                                                                         Period ended  Period ended   31 December
                                                                         30 June 2007  30 June 2006          2006
                                                                          (Unaudited)   (Unaudited)     (Audited)
In thousands of euro

Profit/loss and total recognised income and                                  
expense for the period/year                                                     8,544         6,676      (28,839)




Condensed consolidated interim balance sheet
As at 30 June 2007

                                                                  30 June       30 June  31  December
                                                                     2007          2006          2006
                                                              (Unaudited)   (Unaudited)     (Audited)

In thousands of euro

Assets
Property, plant and equipment                                           -            73            56
Intangible assets                                                  57,078       101,440        58,548

Total non-current assets                                           57,078       101,513        58,604

Trade receivables                                                   2,746         2,220         1,892
Other receivables and prepayments                                     336           553           417
Cash and cash equivalents                                          12,658         6,328         9,407

Total current assets                                               15,740         9,101        11,716

Total assets                                                       72,818       110,614        70,320


Equity
Issued share capital                                               38,608        38,608        38,608
Share premium                                                      51,978        57,927        57,926
Retained earnings                                                (20,879)        11,421      (29,853)

Total equity attributable to equity holders of the parent         69,707       107,956        66,681

Liabilities
Income tax payable                                                     18            18            18
Trade and other payables                                              776         1,370         1,317
Accrued expenses                                                    1,345         1,270         1,101
Withholding tax on dividends                                          972             -         1,203

Total current liabilities                                           3,111         2,658         3,639

Total liabilities                                                   3,111         2,658         3,639

Total equity and liabilities                                       72,818       110,614        70,320




Condensed consolidated interim statement of cashflows
For the period ended 30 June 2007

                                                                          6 month       6 month    Year ended
                                                                     Period ended  Period ended   31 December
                                                                          30 June       30 June          2006
                                                                             2007          2006      (Audited)
                                                                       (Unaudited)   (Unaudited)

In thousands of euro

Cash flows from operating activities
Cash receipts from customers                                               21,109        21,141        40,833
Cash paid to suppliers and employees                                     (11,789)      (12,220)      (22,934)

Net cash from operating activities                                          9,320         8,921        17,899


Cash flows from investing activities
Interest received                                                             200            30           154
Acquisition of property, plant and equipment                                    -          (44)          (45)
Acquisition of intellectual property                                            -         (105)         (231)

Net cash from investing activities                                            200         (119)         (122)


Cash flows from financing activities
Dividend paid                                                             (6,179)       (9,595)      (15,612)

Net cash from financing activities                                        (6,179)       (9,595)      (15,612)


Net increase/(decrease) in cash and cash equivalents                        3,341         (793)         2,165
Cash and cash equivalents at beginning of the period/year                   9,407         7,233         7,233
Effect of exchange rate fluctuations on cash held                            (90)         (112)             9

Cash and cash equivalents at end of the period/year                        12,658         6,328         9,407


Condensed consolidated interim statement of change in shareholder's equity



                                                           Share        Share      Retained       Total
                                                         Capital      premium      earnings
In thousands of euro
Balance at 1 January 2006                                 38,608       67,522         4,109     110,239
Equity settled transactions net of tax                         -            -           636         636
Dividend paid in period                                        -      (9,596)             -     (9,596)
Total recognised income and expense                            -            -         6,676       6,676
Balance at 30 June 2006                                   38,608       57,926        11,421     107,956

Balance at 1 July 2006                                    38,608       57,926        11,421     107,956
Equity settled transactions net of tax                         -            -           636         636
Dividend paid in period                                        -            -       (6,016)     (6,016)
Total recognised income and expense                            -            -      (35,515)    (35,515)
Balance at 31 December 2006                               38,608       57,926      (29,853)      66,681

Balance at 1 January 2007                                 38,608       57,926      (29,853)      66,681
Equity settled transactions net of tax                         -            -           430         430
Dividend paid in period                                        -      (5,948)             -      (5948)
Total recognised income and expense                            -            -         8,544       8,544
Balance at 30 June 2007                                   38,608       51,978      (20,879)      69,707




Notes to the condensed consolidated interim financial information


Basis of preparation

Gaming VC Holdings SA (the ''Company'') is a company registered in Luxembourg.
These interim consolidated financial statements are presented in accordance with
the requirements of IAS 34 Interim Financial Reporting.  The Accounting policies
used in the preparation of the interim financial statements comply with the
International Financial Reporting standards ('IFRS') as adopted by the European
Union.  They are consistent with those used in the annual financial statements
for the year ended 31 December 2006.

The interim report contains the unaudited financial information of the Company
and its subsidiaries (together referred to as the 'Group') for the 6 months
ended 30 June 2007.

The condensed consolidated interim financial information was authorised for
issue by the Directors on 25 September 2007.

These interim financial statements should be read in conjunction with the 2006
consolidated financial statements.



1   Segment reporting

Segment information is presented in respect of the Group's business and
geographical segments.


Business segments

Based on risks and returns the management considers that the primary reporting
format is by business segment.  The directors consider that there are two
business segments being the casino operation of games of chance and skilled
based games, primarily Poker which was launched in the last quarter of 2005.


Geographical segments

Within the period the core business activity has been concentrated in the German
language countries.

Development specifically tailored for other European language countries is
ongoing.  Owing to current legislation in the US the company continues to block
access to its games to potential players located there.

Segment capital expenditure is the total cost incurred during the period to
acquire segment assets that are expected to be used for more than one year.

In presenting information on the basis of geographical segments, segment revenue
is based on the geographical location of customers.  Segment assets are based on
the location of the assets themselves.


Geographical segments

Games of Chance

                         Germany            Austria       Switzerland      Other Countries       Consolidated
In thousands of euro  2007      2006     2007     2006   2007     2006     2007       2006      2007       2006

Revenue             16,176    15,648    3,071    3,578    615      816      614        368    20,476     20,410
Segment assets           -         -        -        -      -        -   72,641    110,475    72,641    110,475
Capital expenditure      -         -        -        -      -        -        -        149         -        149



Games of Skill
                        Germany           Austria          Switzerland      Other Countries       Consolidated
In thousands of euro  2007    2006      2007     2006     2007     2006      2007      2006      2007       2006

Revenue              1,205     566       213      136       63       24        46        72     1,525        798
Segment assets           -       -         -        -        -        -       177       139       177        139
Capital expenditure      -       -         -        -        -        -         -         -         -          -


Assets and liabilities are not specifically allocated to business segments as
the total assets and liabilities of the Group are utilised, managed and reported
centrally across all business segments.  Consequently it is not possible to
provide a meaningful allocation of assets and liabilities for each business
segment as this cannot be done on a reasonable basis.


All segments are continuing operations.


2   Taxation

The group has been structured to provide earnings efficiency through the use of
advantageous tax treaties between countries where the Group has established
legal entities.  The result of this structuring is a total tax charge of €Nil in
H1 2007 and €Nil in H1 2006.  The Group periodically reviews all of the relevant
and controlling tax regulations to optimise the available benefits.  A Group
effective tax charge of less than 10% of net profit is envisaged to continue for
the foreseeable future.


3   Dividends

A dividend in respect of the financial year 2007 of €0.193 per share was
declared by the Annual General Meeting held on 15 May 2007 and paid on 29 May
2007.


4   Earnings per share

The calculation of basic earnings per share at 30 June 2007 was based on the
profit for the period attributable to ordinary shareholders of €8,544,000 (2006
interim: €6,676,000; full year: loss of €28,838,575) and on a weighted average
number of ordinary shares in issue during the period, which totalled 31,135,762
shares (2006 interim: 31,135,762; full year: 31,135,762).

The calculation of diluted earnings per share at 30 June 2007 was based on the
profit attributable to ordinary shareholders of €8,544,000 (2006 interim:
€6,676,000; full year: loss of €28,838,575) and on a weighted average number of
ordinary shares outstanding at 30 June 2007 of 31,135,762 shares (2006 interim:
31,382,665; full year: 31,135,762).

The share options issued in the period are anti-dilutive and have had no impact
on the calculation of the diluted earnings per share.


5   Subsequent Events

In July 2007 GVC Holdings SA incorporated two wholly owned subsidiaries, GVC
Corporation Limited in Malta and GVC Corporation SpA in Italy.


                                    - Ends -


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