Betandwin Responds to Marketplace Rumors

VIENNA, Austria – (PRESS RELEASE) -- betandwin group, the leading provider of online gaming products in Continental Europe, has set itself the goal of becoming the world's number one address for sports betting, gaming and entertainment on the Internet. Operating under licences issued in Austria, Germany, the United Kingdom and Gibraltar, the company's subsidiaries and affiliated companies offer sports betting, casino games and lottery-like products via Internet and mobil phone. BETandWIN.com Interactive Entertainment AG has been listed on the Vienna Stock Exchange since March 2000 (ID code "BWIN", Reuters ID code "BWIN.VI"). Further information about the company can be found on its investor relations website at http://www.betandwin.ag.

You can expect exciting entertainment on the following websites: http://www.betandwin.com, http://www.playit.com, http://www.beteurope.com, http://www.sanalcasino.com , http://www.casinoturk.com, and http://www.bahsegir.com.

In response to the many inquiries it has received recently from investors regarding the high volatility in the trading of its shares, betandwin has issued the following statement in order to dispel the current uneasiness of the market:

- Contrary to isolated rumours on the market, as far as the development of the company is concerned, no unusual events have occurred to date that might invalidate the statements made at the press conference immediately before the Annual General Meeting and at this year's Annual General Meeting itself, or the facts published in the quarterly reports. The current quarter is developing better than the company anticipated due to the successful acquisition of new customers in the second quarter of 2004. Further details can be found in the press release dated 17 August 2004 issued as part of betandwin's compulsory reporting.

- betandwin has issued 150,000 new shares that were approved for official trading on the Vienna Stock Exchange on 20 August 2004. This capital increase was made from authorised capital by the exercise in May 2004 of performance-dependent management stock options. After this increase, the equity capital of BETandWIN.com Interactive Entertainment AG now stands at EUR 12,200,950. Details of this stock option award were published in the Wiener Zeitung on 3 June 2004 in compliance with the Companies Act. These options are in no way connected with the expiry date of the call options issued by RCB. The co-CEOs have not sold any betandwin shares in recent weeks.