Youbet to brief investors on investigation

WOODLAND HILLS, California -- (PRESS RELEASE) -- Youbet.com, Inc. (NASDAQ:UBET) said today that it plans to brief investors later this week on the company's current knowledge of a government investigation into activities of certain customers of its International Racing Group (IRG) subsidiary. Youbet officials are working internally to discern the facts surrounding the government's interest in the customers as well as a former IRG owner. IRG is a phone-based wagering company that serves high-volume customers and pays rebates based on that volume.

Youbet has a strict compliance protocol and is an industry leader in compliance, oversight and system integrity. The company is working with authorities to learn the source of the potential wrongdoing and has pledged its ongoing assistance as investigators conduct their work. If it is learned that laws were broken, the company supports swift and aggressive prosecution.

The investor briefing will take place via conference call at 4:30 p.m. EDT this Thursday, October 18 (see details below).

On the call, the company will reiterate that Youbet Express(SM), its core online wagering service, is not involved in any way with the government inquiry. Online advanced deposit wagers are being serviced as usual at www.youbet.com and are being offered in compliance with all relevant state and federal laws and regulations. IRG continues to service phone wagers as well.

Authorities are investigating a potentially wide net of activities of a small number of individuals who may have used telephone rebate wagering services, including those offered by IRG, in an allegedly illegal manner. The company disclosed Friday in a filing with the U.S. Securities and Exchange Commission that, in connection with their investigation, federal authorities in Nevada took possession of $1.5 million held in IRG bank accounts by way of civil asset forfeiture.

Youbet is not presently aware of any illegal activity in any of its organizations. Further, as IRG is regulated and licensed by the Oregon Racing Commission (ORC), Youbet is not aware that IRG is in any way not in compliance with its operating plan as approved by ORC.

The Thursday conference call can be accessed by dialing toll-free 1-866-225-8754 or, for international callers, by dialing 1-480-629-9562. The call will be webcast live from the company's website at youbet.com.