Trading Statement

Paddy Power plc
16 April 2003

                                  Paddy Power

                               Trading Statement

                                 16 April 2003

         Exceptional Horse Racing Results to Impact First Half Profits

2003 has started robustly, with the strong turnover growth announced in the
preliminary results on 25 February 2003 continuing in all channels. However,
recently gross margin has been depressed due to unfavourable horse racing
results, most notably the record number of favourites winning at Cheltenham
combined with a poor Grand National outcome. As a result, operating profits in
the first half of 2003 will be approximately €4 million short of expectations.

As there has been no fundamental change in the underlying trading or risk
profiles, the Board expects average gross margins to come within their normal
range for the year as a whole, albeit at the lower end of that range.

The turnover growth since the start of the year positions the business well for
the remainder of 2003. In Ireland, two new betting offices have been opened
together with three relocations. In the UK, two new shops have been opened, one
new license has been awarded, while 5 license hearings are scheduled within the
next three weeks. A further six new licenses applications have been made. We
continue to see customer acquisition levels on the telephone and online channels
continue to meet our expectations.

The Board remains very confident of the prospects for the Group.



For reference:

John O'Reilly                                      Ross Ivers
Chief Executive                                    Finance Director
Paddy Power plc                                    Paddy Power plc
Tel: + 353 1 404 5900                              Tel: + 353 1 404 5931
Mobile: + 353 87 254 1688                          Mobile: + 353 87 668 8772

Billy Murphy /Mark Cahalane                        David Bick
Drury Communications                               Holborn PR
Tel: + 353 1 260 5000                              Tel: + 44 207 929 5599
Mobile: + 353 87 230 2737



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