US LEGISLATION - UPDATE

Empire Online Limited
13 October 2006

                                                                 13 October 2006





                               Empire Online Limited





                              US LEGISLATION - UPDATE





Further to Empire Online's announcement of 2 October 2006, new legislation
affecting on line gaming in the USA has been introduced today. After taking
extensive advice on this matter the Company will terminate its USA business with
immediate affect.



This action will have a material adverse effect on Empire Online's future
earnings. Currently, approximately 65% of Empire Online's revenues are generated
from customers based in the USA. The Company's margins will also be affected by
the loss of this revenue due to operational gearing and the higher gross margin
generated from the USA business.



The Board is confident that the business will continue to generate positive
Earnings before interest, tax, depreciation and amortisation (EBITDA) for 2007.
In the first half of 2006 more than 55% of new real money player sign ups came
from outside the USA. The Company has considerable cash resources at its
disposal and the Board re affirms its intention to pay an interim dividend of
1.7cents per share.



The Company will now focus its resources on two key areas:



developing its market position in online gaming outside the USA,



leveraging its expertise in on line marketing to other sectors in which it has
not previously been involved.











Enquiries:



Empire Online Limited                                 [phone]

Noam Lanir, Chief Executive Officer

Andrew Burns, Chief Financial Officer



Hudson Sandler                                        [phone]

Jessica Rouleau



                                      END


                      This information is provided by RNS
            The company news service from the London Stock Exchange