Statement re Strategic Review & Fundraising

FOR IMMEDIATE RELEASE 19 October 2004

                       UPDATE REGARDING STRATEGIC REVIEW                       

                                AND FUNDRAISING                                

The Board of betinternet.com plc, ('betinternet' or 'the Company') the global
on-line gaming group, advised shareholders on 25 June 2004 that it had
commenced a strategic review which was intended to address the longer term
strategy and financing of the Company, including the strategic options open to
its Sports Book and Pari-Mutuel businesses.

Having completed that review, the Board has concluded that the further
development of the Pari-Mutuel business will provide the best opportunity for
enhancing shareholder return. Key to this decision is the fact that the
Company's Pari-Mutuel business has continued to trade ahead of expectation
since the acquisition of the outstanding 50% interest in June 2004. In the
first four months of the current financial year Pari-Mutuel turnover was
$48.8m, an increase of 480% over the comparable period last year. Pari-Mutuel
wagering provides a risk-free return to the promoter and is the predominant
form of wagering in the world, with an estimated turnover of $116bn. The Board
further believes that there are significant global opportunities to exploit the
wagering and technical services that the Company can provide from its Isle of
Man hub. The Board considers that betinternet is uniquely placed to provide the
link between the major track operators and content providers and the customers
who wish to wager.

Based on the strategic review, the Board considers that the increasing cost of
attracting and retaining customers to the Sports Book business, together with
the inherent risk of running a fixed odds operation, makes it unlikely that
returns similar to the Pari-Mutuel operation will be achieved from that
operation. Having taken steps both to reduce costs and improve its trading risk
strategy, the Board will seek opportunities to maximise the returns generated
from that activity.

In the meantime, the Board has determined to undertake a further round of
fundraising in order to provide additional resource for the Company, and to
replace the guarantee entered into in favour of the Company by Burnbrae Limited
and Mill Properties Limited which expires on 24 October 2004 and which has
remained undrawn during the period.

In support of the above objectives, and as a reflection of confidence in the
future of the business, the Board is pleased to announce that financing of £1m
has, in principle, been put in place for the development of the Group. The
Board announces its intention to undertake a placing of 20 million new Ordinary
Shares with Burnbrae Limited ('Burnbrae') at a price of 4p per share to raise a
total of £800,000 for the Company. Additionally, to replace the temporary
shareholder financing announced in June 2004 which is due to expire on 24
October 2004, Burnbrae will immediately loan an amount of £200,000 to the
Company by way of a 6% Convertible Loan. This Convertible Loan will convert to
5 million new Ordinary Shares in the Company in the event that shareholders
approve the waiver of the requirements of Rule 9 of the City Code, such waiver
to cover both the proposed placing and the conversion of the Convertible Loan
to Ordinary Shares.

Burnbrae is owned by a trust of which Mr J Mellon, a director, is a
beneficiary. The proposed placing and anticipated conversion of the loan to 5
million new Ordinary Shares will increase the holding of Burnbrae and its
connected parties to 34.72 per cent of the issued ordinary share capital.
Accordingly, before the proposed placing and loan conversion can proceed, a
waiver of the requirements of Rule 9 of the City Code on Takeovers and Mergers
('the City Code') must be obtained from the Panel on Takeovers and Mergers
('the Panel') in respect of the increase in Burnbrae's holding in the Company
above 30 per cent. That waiver will be subject to the approval, at an
extraordinary general meeting, of shareholders who are deemed independent of
the proposed arrangement. The Board is currently in the process of making the
necessary arrangements for the placing and the grant of the waiver by the
Panel.

The terms of the Convertible Loan have been considered by the independent
director, Paul Doona. The independent director, who has consulted Williams de
Broë Plc with respect to the terms of the Convertible Loan, considers that
those terms are fair and reasonable as far as shareholders are concerned.

Full details of the proposed fundraising arrangements and waiver of Rule 9 of
the City Code are expected to be announced, and a circular detailing the
arrangements posted to shareholders, in late October, at which time the Company
will also release its preliminary statement for the year to 30 May 2004.An
extraordinary general meeting will be convened to consider the various
proposals in due course and shareholders will be notified of it accordingly.

                                     ENDS                                      

For further information:

betinternet.com plc Tel: [phone]
Paul Doona, Managing Director

Waughton Tel: [phone]
Robin Hepburn