Interim Results

Power Leisure PLC
24 July 2001


                              POWER LEISURE PLC
                   INTERIM RESULTS FOR THE HALF-YEAR ENDED
                                30th JUNE 2001

Power Leisure plc, trading as Paddy Power Bookmaker, the leading bookmaker in
Ireland with on-line betting services in both Ireland and the UK, announces
its Interim Results for the half year ended 30 July 2001.

HIGHLIGHTS

- Turnover Euro206.4m up 18.6% (H1 2000: Euro174.1m)

    - 11.2% growth in LBO (Licensed Betting Office) turnover

    - 10.3% increase in telebetting turnover

    - Growth in online registrations to 26,846 from 12,437 (31
      December 2000)

    - Ongoing investment in online operations following UK launch
      in March 2001

    - Online turnover at Euro14m represents 7% of Group turnover, up
      from 2% of Group turnover for full year 2000

    - Operating profit excluding online operations Euro9.8m, up 60.7%
      (H1 2000:Euro6.1m)

- Operating profit including online operations Euro4.0m (H1 2000: Euro5.5m)

- Interim dividend 1.7c per share

Commenting on the results, Group Chief Executive, Stewart Kenny said:

'Good progress was made across all our businesses.  The launch of online
betting services into the UK market was a particular highlight and is
performing satisfactorily.  Our telephone betting service continues to expand
attracting new customers and increased revenues.  Our licensed betting offices
traded exceptionally well.  The opening of four new offices in Ireland and one
in West London brings our total network to 124.

The outlook for all our operations remains positive.  Our focus is to ensure
the continuing development of our three businesses: LBOs, on-line and
telephone betting services and the successful development of our online
services in the UK.'

                                   - End -

24 July 2001

For enquiries contact:

Stewart Kenny                                Peter O'Grady Walshe
Chief Executive, Power Leisure plc           Finance Director, Power Leisure plc
Tel:  [phone]                       Tel: [phone]

Issued on behalf of Power Leisure plc
By: Drury Communications Ltd                 Holborn Public Relations
Contact: Mark Cahalane, Marie Therese Duffy  Trevor Phillips
Tel: [phone]                         Tel: [phone]


Interim Report 2001 Highlights



                                   Six months ended   Six month ended
                                       30 June 2001      30 June 2000
                                           Euro'000          Euro'000  % Change
Turnover


Licensed betting offices                    170,368           153,189    +11.2%
Telephone betting                            22,055            19,988    +10.3%
On-line interactive betting                  13,993               926


Total Group turnover                        206,416           174,103    +18.6%

Operating Profit/(Loss)


Licensed betting offices                      9,363             5,777    +62.1%
Telephone betting                               480               349    +37.5%
On-line interactive betting                 (5,833)             (582)        nm


Total Operating Profit                        4,010             5,544    -27.7%

Profit after taxation                         3,492             3,974    -12.1%


Profit retained for the period                2,691             2,768     -2.8%

Earnings per Share

Basic earnings per share                      7.41c              .08c    -18.4%
Diluted earnings per share                    6.90c             8.33c    -17.2%

Dividends per Share

Interim paid                                    nil             1.02c
Interim payable                               1.70c             1.74c
                                              1.70c             2.76c

Net Assets                                   28,499            18,975

Chairman's Statement

To all our Shareholders

I am pleased to report to shareholders growth in operations and underlying
earnings in the six months ended 30 June 2001. Your Company's turnover grew by
18.6% from Euro174.1 million in H1 2000 to Euro206.4 million in H1 2001.  As a
result of continuing investment in our on-line betting operations profits
after tax declined 12.1% from Euro3.97 million in H1 2000 to Euro3.49 million
in H1 2001. This resulted in a 17.2% decline in diluted earnings per share
from 8.33c in H1 2000 to 6.90c in H1 2001. This was accomplished
notwithstanding the impact of cancelled sporting events caused by movement
restrictions resulting from foot and mouth disease.

We remain pleased with progress in our on-line betting service
('paddypower.com') since its establishment in April 2000 and its launch in the
UK market in March 2001 ('paddypower.co.uk'). These internet-based services
were followed by the launch of interactive TV services through ntl and
Telewest in March and May 2001 respectively. Monthly turnover through our
on-line interactive operations exceeded Euro3 million for the first time in
June 2001.

The Board has decided to pay an interim dividend of 1.70c per share on 13
August 2001 to shareholders on the register at the close of business on 3
August 2001.

In the following pages of this Interim Report you will find a brief review of
the operations and finances of your Company during the first six months of
2001.

We remain encouraged by progress in all areas of our business since 30 June
2001 and look forward to being in a position to report further progress to you
early next year.


John Corcoran
Chairman
24 July 2001

Operating Review

Power Leisure remains focused as a small-stake, fixed-odds sports bookmaker
operating under the Paddy Power name. The Company has added to its licensed
betting offices ('LBO') and telephone betting operations with the formal
launch in June 2000 of our internet-based service, paddypower.com, followed in
March 2001 by the launch of online services into the UK market.

Licensed Betting Offices

During the first six months of 2001 the Company opened a further four (H1
2000: two) Paddy Power LBOs bringing the total number of outlets in operation
in Ireland at the period end to 122. In addition, a second LBO was opened in
the UK in west London in May 2001. We continue to operate four racecourse LBOs
(H1 2000: three). Our relocation program continued during the period with one
LBO (H1 2000: one) relocated to larger and better-positioned premises. A
further three (H1 2000: five) LBOs were refurbished.

Telephone Betting

Our telephone betting service ('Dial-a-bet') continued its expansion during
the first six months of 2001 and ended the period with 22,042 registered
customers (31 December 2000: 19,967) and 8,644 active customers (31 December
2000: 7,390). (note: active customers are defined as those that have bet with
us in the previous three months). We have achieved measurable increases in our
customer call handling response times since December 2000 following the
relocation of the operation to larger premises.

On-line Betting

In June 2000 our internet-based betting service ('paddypower.com') was
formally launched. Based on our initial marketing campaign in Ireland we
achieved a total of 12,433 account registrations by 31 December 2000. Further
intensive marketing and advertising followed from March 2001 in the UK to
coincide with the launch of our UK resident site paddypower.co.uk and
interactive TV services through the cable systems of ntl Group and Telewest.
As a result the number of account registrations has grown to 26,846 by 30 June
2001. Of these 5,064 accounts at 31 December 2000 and 12,497 at 30 June 2001
are active (note: active accounts are those that have placed a bet within the
previous three months). Turnover through our on-line interactive services in
the first half of 2001 of Euro14.0 million was generated on an average bet
size of Euro29.72. This average excludes turnover derived from our lottery
results-based product, Lucky Numbers, which has an average bet size of Euro
2.77. During June 2001 active on-line customers each bet, on average, 8.2
times during a four-week period.

Our on-line service is now offered, together with the services of other
bookmakers, to the interactive (digital) TV customers of ntl Group and
Telewest, the two largest cable TV operators in the UK. Account registrations
through these services amounted to 1,031 at 30 June 2001. As of 31 March 2001
ntl Group had 757,000 (31 December 2000: 530,000) interactive TV customers in
the UK and a target of 1,250,000 by the end of 2001. Telewest announced that
on 4 June 2001 it had 532,000 interactive TV customers. We launched our
service on the ntl system in March 2001 at the same time as the launch of our
internet-based service, paddypower.co.uk, to UK customers. We launched our
Telewest-based service in May 2001. The Group substantially increased the
level of its expenditure on advertising and marketing in support of the UK
launch of our on-line interactive services in H1 2001. We continue to review
the results from this expenditure as our UK launch progresses.

Financial Review

Turnover

The Group's turnover increased by 18.6% over H1 2000 to Euro206.5 million.
Like for like turnover in our LBOs increased by 7.6%, while aggregate LBO
turnover grew by 11.2% which includes the impact of five additional LBOs
opened during the period.  During the period the average slip value within the
LBOs increased by 11.4% from Euro11.57 in H1 2000 to Euro12.89. Telephone
betting turnover growth remained strong recording a 10.3% increase in turnover
over H1 2000. Average transaction size per call remained virtually unchanged
moving from Euro79.79 in H1 2000 to Euro79.49 in H1 2001.  Turnover through
our on-line interactive operations grew substantially to Euro14 million.

Margin

Gross margin, measured as bets placed (excluding betting duty and levies) less
winnings returned to customers, increased by 32.2% over H1 2000 to Euro28.1
million. Expressed as a percentage of turnover by delivery channel the
following margins were achieved:

Gross Margins                          H1 2001            H1 2000          2000

LBOs                                     14.9%              12.8%         13.4%
Telephone betting                        9. 8%               8.1%          8.9%
On-line                                   4.5%             (2.6%)          8.1%
Group Total                              13.6%              12.2%         12.8%

The gross margins achieved in our LBO and telephone betting operations are
higher than we would normally expect to achieve. Gross margin of 4.5% which
was achieved on on-line turnover was disappointing. We have taken steps to
improve on this performance. Our gross margins must be measured against the
burden of Irish government betting duty and levies borne by the Group, which
represented 5.3% of turnover (likely to reduce to 5% with effect from 1 July
2001). The willingness and the ability of the Group to bear this taxation
burden, which is necessary to maintain competitiveness with operators located
in jurisdictions which levy a nominal tax on bets, is now very limited. As a
result of the prospective reduction in betting duty in the UK from 6 October
2001 the Group plans to take advantage of this change to offer tax-free
betting to our Irish telephone and on-line customers.

Operating Profit

Operating profit of Euro4.0 million is stated after charging significant
launch costs for our on-line-based operations which resulted in a loss of Euro
5.8 million in this segment of our business. These costs include Euro0.8
million in respect of betting duty and levies incurred on behalf of customers
and an allocated share of marketing and advertising expenditure amounting to
Euro3.2 million.

Tax Rate

Corporation tax charge for the six months ended 30 June 2001 amounted to Euro
0.8 million (H1 2000: Euro1.7 million) which represents an effective tax rate
of 19.3% (H1 2000: 30.0%) against the standard rate of 20% (H1 2000: 24%). The
historical difference between the standard rate and our effective rate of tax
was primarily due to significant investment in computer equipment which we
depreciate over a three year period and depreciation on premises which is not
tax deductible.


Cash Flow

Net cash flow from operating activities fell by 44.9% over H1 2000 to Euro4.9
million. This cash was partially utilised in payments amounting to Euro3.6
million (H1 2000: Euro3.1 million) to acquire fixed assets. Cash balances
amounted to Euro14.3 million at 30 June 2001 (30 June 2000: Euro8.7 million).
This increase partly reflects the Euro3.6 million net proceeds of the share
placing in December 2000. Cash balances include Euro0.9 million held on behalf
of customers.


Dividends

The Board has approved an interim dividend of 1.7c per share. This is the
first interim dividend payable since the Company was floated and is not
directly comparable to interim dividends paid in previous years.  It is the
Board's intention to adopt a progressive dividend payment policy mindful of
the short-term requirements of our UK launch of on-line services and possible
acquisition opportunities.  It is also the Board's intention that final
dividends will tend to be approximately twice the size of interim dividends.

Outlook

The outlook for all our operations remains positive. Our biggest challenge for
2001 remains to ensure the successful development of our internet-based
paddypower.co.uk together with the interactive service on the ntl and Telewest
digital cable TV systems in the UK.  We look forward to the benefits of the
shift (in the UK) from a turnover-based tax to a gross profits-based tax with
effect from 6 October 2001.

Euro

The Group continues to review the future impact of the introduction of the
Euro to its business and in particular cash handling and processing procedures
during early 2002. The costs associated with the introduction of the Euro are
not expected to be material.

Management

Ross Ivers has been appointed finance director designate and will assume the
position of finance director during September 2001 when Peter O'Grady Walshe
steps down as finance director and resumes his role as a non-executive
director of the Company. Ross Ivers worked in a number of senior financial
positions with Viapay Limited, Astec (BSR) plc and the Jardine Matheson Group.
John O'Reilly has been appointed chief operations officer with responsibility
for all day-to-day operations of the Group including on-line interactive
operations. This appointment will allow the CEO to increase his focus on the
strategic development of the Group and the marketing and development of the
Paddy Power brand.


Consolidated Profit and Loss Account
Six months ended 30 June 2001 (unaudited)


                                           Six months     Six months Year ended
                                                ended          ended
                                         30 June 2001   30 June 2000         31
                                                                       December
                                             Euro'000       Euro'000   Euro'000
                                          (unaudited)      (audited)  (audited)


Turnover                                      206,416        174,103    362,825
Cost of winning bets paid                   (178,340)      (152,865)  (316,511)


Gross profit                                   28,076         21,238     46,314
Operating expenses                           (24,066)       (15,694)   (35,685)


Operating profit                                4,010          5,544     10,629
Interest payable and similar charges                            (12)       (15)
Interest receivable and similar income            315            144        336
Profit on ordinary activities before            4,325          5,676     10,950
taxation
Tax on profit on ordinary activities            (833)        (1,702)    (2,937)


Profit on ordinary activities after             3,492          3,974      8,013
taxation
Dividends                                       (801)        (1,206)    (1,756)


Retained profit for the period                  2,691          2,768      6,257
Retained profit brought forward                16,867         10,610     10,610
Retained profit carried forward                19,558         13,378     16,867

Earnings per Share
Basic                                           7.41c          9.08c     18.20c
Diluted                                         6.90c          8.33c     16.87c

Dividend per share                              1.70c          2.76c      3.92c



Consolidated Balance Sheet
30 June 2001 (unaudited)



                                                  30 June   30 June 31 December
                                                     2001      2000        2000
                                                 Euro'000  Euro'000    Euro'000
                                              (unaudited) (audited)   (audited)


Fixed assets


Tangible assets                                    22,565    16,968      21,336
Intangible asset                                    1,206     1,327       1,267
                                                   23,771    18,295      22,603

Current assets


Debtors                                             1,168       415         671
Cash at bank and in hand                           14,318     8,738      16,054
                                                   15,486     9,153      16,725

Creditors (amounts falling due within one        (10,758)   (8,473)    (13,240)
year)
Net current assets                                  4,728       680       3,485
Total assets less current liabilities              28,499    18,975      26,088

Capital and reserves


Called up share capital                             4,714     4,630       4,714
Share premium                                       3,305       305       3,585
Capital redemption reserve fund                       662       662         662
Capital conversion reserve fund                       260         -         260
Profit and loss account                            19,558    13,378      16,867


Shareholders' funds                                28,499    18,975      26,088



Consolidated Cash Flow Statement
Six months ended 30 June 2001


                                         Six months  Six months  Year ended
                                              ended       ended
                                                                31 December
                                            30 June     30 June        2000
                                               2001        2000
                                         Euro  Euro  Euro  Euro  Euro  Euro
                                         '000  '000  '000  '000  '000  '000


Net cash inflow from                          4,897       8,887       20,104

operating activities


Returns on investments and servicing of
finance
Interest received                         315         144         336
Interest element of finance lease                 -  (12)        (15)
payments
                                                315         132         321




Taxation
Corporation tax paid                          (2,556)    (1,906)       (2,216)


Capital expenditure & financial
investments
Acquisition of tangible fixed assets    (3,632)    (3,150)      (9,612)
Sales proceeds on disposal of fixed         69         62           61
assets
                                              (3,563)    (3,088)        (9,551)
                                                (550)      (888)        (1,650)

Equity dividends paid
Net cash (outflow)/inflow before              (1,457)     3,137          7,008
financing

Financing
Capital element of finance lease                           (239)         (418)
payments
Issue of new shares including share             (279)                   3,624
premium less costs of issue


Net cash (outflow)/inflow                     (1,736)     2,898        10,214