Virtually every industry operating today has an online presence. If they did not, they would not be able to tap into the online shopping phenomenon. Online shopping is a trending phenomenon that has experienced exponential growth. Of every online business known to man, one of the industry’s that has been the most successful, has been the online gambling space.

We are able to gamble on anything online. Take a punt on a favourite team or horse, or even on virtual horses; play bingo, slots, casino table games, poker, buy lottery tickets. The lot! The online casino business has made the gamblers world so simple it is not even funny – the world quite literally has become their oyster.

People in all walks of like, from every race and culture imaginable, have throughout history, loved to take a gamble. It is inherent in human nature, and one of the ways adults play. Essentially gambling is done for fun, and although some people do get addicted, it pays to note that people are the problem, not online casinos, nor the games that are on offer. A mature, stable person knows when to stop, and understands the concept that winners know when to stop.

Gambling is fun. It is a form of entertainment that taps into both our winning, as well as gaming fantasies. Games – especially slots have been themed on just about every pop-culture archetype, and therefore offer something for everyone. There are Avenger, Thor, Hulk, Batman, and Lord of the Rings slots. We have yet to see Twighlight slots, but don’t believe that this theme is off the drawing board. Tons of vampire themed slots are on offer daily at hundreds of casinos.

Whatever theme titillates the player can be found online, with major software developers paying in the millions for licence agreements with movie studios. Universal for example, has recently agreed to a licensing deal for the Jurassic Park Trilogy. Microgaming managed to land that. They cash in on the most exciting ideas, so, that we can cash in on them too. Star Wars has made its appearance in the form of a slot form, and we have already mentioned Lord of The Rings, you don’t have to take my word for it. Simply get to your nearest online casino, and see for yourself.

Do, do yourself a favour however and make sure your chosen casino is powered by Microgaming, Playtech, or the wonderful Net Entertainment. The world is your oyster in terms of game choices, and who knows what you might win.

Hall of Gods™, the popular online slot game from Net Entertainment, on April 20 paid out yet another life-changing online jackpot, the fourth million euro win in recent years for Hall of Gods™. This time the jackpot amounted to 6.7 MEUR and the lucky Swedish winner, a man in his sixties from the town of Norrköping, staked 2 EUR in the game Hall Of Gods™ at the Malta-based operator Betsson.

This Betsson-jackpot is the third biggest in their history, one being the 2011 Guinness World Record Jackpot of 11.7 MEUR from Net Entertainment’s video slot Mega Fortune™. The next largest was landed last summer when a man from Linköping won 3.12 MEUR in Mega Fortune™ with a 2 EUR stake.

Hall of Gods™ is a progressive jackpot and part of Net Entertainment’s jackpot network, where the liquidity from players from many of the most popular European online casinos is pooled. In Hall of Gods™ players come face-to-face with Norse mythology in a 5-reel Triple Jackpot featuring the Midgard Serpent in the expanding wild, and Odin’s ravens on the scatter symbol. The bonus game features Thor’s hammer which players can use to break shields and match three to win one of the three jackpots or a variable coin amount.

Although this latest win didn’t break January’s World Record Jackpot of 17.8 MEUR from Net Entertainment’s video slot, Mega Fortune™ it is another huge return for the winner.

"Announcing yet another million euro winner so soon after the World Record Jackpot in January is a great testament to our games and continues our history of creating millionaires from our popular progressive video slots. Net Entertainment’s ability to offer high liquidity in our progressive slots sets us out from the crowd and helps player acquisition for operators through the ability to quickly build up jackpots. Net Entertainment would like to wish the winner all the best and congratulate Betsson for another life-changing win." comments Per Eriksson, President and CEO of Net Entertainment.

Net Entertainment’s progressive jackpot portfolios consist of Arabian Nights™, Mega Fortune™ and Halls of Gods™ video slots, all part of the Net Entertainment jackpot network, pooling the liquidity of players from several of Europe’s largest online casinos.

Earnings report 2011 – Quarterly report October – December 2011

2011 WAS A YEAR OF NEW INITIATIVES FOR CONTINUED SUSTAINABLE GROWTH

FOURTH QUARTER 2011

• Revenues for the fourth quarter increased by 21.6 % to SEK 121.1 (99.6) million
• Operating profit amounted to SEK 42.2 (33.8) million
• Operating margin was 34.9 (33.9) %
• Profit after tax amounted to SEK 36.6 (29.0) million
• Earnings per share amounted to SEK 0.93 (0.73) before and after dilution
• Two new license agreements were signed, and two new customers’ casinos were launched

FULL YEAR 2011

• Revenues for the full year increased by 16.1 % to SEK 427.6 (368.3) million
• Operating profit amounted to SEK 129.7 (136.4) million
• Operating margin was 30.3 (37.0) %, 31.9 % excluding costs amounting to SEK 6.7 million related to former senior executives
• Profit after tax amounted to SEK 115.6 (120.5) million
• Earnings per share amounted to SEK 2.92 (3.05) before and after dilution
• Seven new license agreements were signed, including G.Matica and Sky Betting & Gaming. Eleven new customers’ casinos were launched
• Proposed transfer to shareholders is SEK 2.00 (2.00) per share

IMPORTANT EVENTS IN THE FOURTH QUARTER

Revenue growth for the fourth quarter was 21.6 percent compared to the fourth quarter 2010. The strengthened Swedish currency has held back revenue growth in SEK. In local currency, revenues increased by 23.1 compared to the fourth quarter 2010.

The number of game transactions amounted to 2.6 billion in the fourth quarter, an increase of 19.6 percent compared to the previous quarter and 48.9 percent compared to the same period in 2010.

During the fourth quarter agreements were signed for delivery of the casino portfolio to several large operators on the newly regulated online market in Denmark. On January 1 2012 Denmark opened up as a regulated market. Operators signed include Betsson, Unibet, Bet24, Sportingbet (including Scandicbookmaker and Danbook). Companies who intend to operate on the local market must fulfill the gaming authority’s compliance requirements during the fourth quarter 2012.

During 2011, Net Entertainment has adjusted and developed the Company’s system and games to be compliant with mobile units. In December the first mobile games were launched on the market. The initial launch includes mobile games supporting IOS terminals, i.e. Iphone, Ipad and Ipod, with three of the Company’s most successful casino games, Gonzo’s Quest, Jack Hammer and Blackjack. Net Entertainment’s mobile offering will be launched under the name NetEnt Touch™ and will include some of the best games from both the existing portfolio and new game releases. The launch of new mobile games will follow a phased roll-out approach to several partners during 2012.

Net Entertainments strategy is to be the leader within online casino. It is a continuous process to improve and expand the product portfolio and the Company constantly analyzes new opportunities. As a result from this, the Company has decided to launch its own Live Casino product with a planned release to the market around year-end 2012. This product segment is a complement to the Company’s existing games portfolio and is estimated to contribute positively to the Company’s growth in the future.

During the fourth quarter Per Eriksson was appointed CEO of Net Entertainment with a start date on March 1, 2012. Per is presently serving as CEO and President of Dustin Group AB. Prior to that, Per has had a long career within Dell, where he left as Head of Dell EMC (Europe, Middle East and Africa).

Intralot Interactive was launched in Italy where Net Entertainment is now live with five out of eight operators.

COMMENTS FROM BJÖRN KRANTZ, ACTING PRESIDENT AND CEO

Year 2011 was a year of new markets and product initiatives to secure continued solid growth for Net Entertainment moving forward. Revenues increased by 21.6 percent during the fourth quarter which is a result of organic growth. Net Entertainment has been successful in strengthening the position as a leading supplier of games and systems within online casino and our focus on customer closeness and product and technology leadership will continue to differentiate us. During 2011 our market share in Europe increased to 22.4 percent compared to 19.3 percent in year 2010 1.

Net Entertainment has a clear focus on online casino and to complement the existing product portfolio and strengthen the Company’s offering it was decided during the fourth quarter to launch our own Live Casino product with a planned release around year-end 2012. Live Casino is a relatively new form of gaming which has proven to be successful and is also expected to show good growth in the coming years.

We are committed to and take part in the ongoing regulation of our industry in Europe. Whether Net Entertainment enters a regulated market or not, is evaluated from case to case with regards to the financial, organizational and the strategic impact on the Company as a whole. Net Entertainment was among the first to enter Italy which regulated the market in July 2011 and Denmark which was regulated in January 2012.

We have now commercially launched five out of eight operators in Italy. The roll-out of remaining customers will take place as soon as practically possible. In addition, it is our ambition to launch slots as soon as the Italian authority allows it.

As a response to the growing mobile market the first mobile games were completed and launch took place according to plan during December 2011. Ongoing launches of new mobile games will take place during 2012 and we will monitor the development closely. The launch of new customers will take place continuously during 2012.

Several successful games have been lunched during 2011. Frankenstein was developed as part of our collaboration with Universal Studios and during the fourth quarter the development of Scarface was initiated which is one of the most well known brands ever in the movie industry. Two new platinum games were launched during the year, Robin Hood and Jack and the Beanstalk with graphics and a gaming experience which truly proves why Net Entertainment is the leading premium supplier of online games on the market today.

We will continue to invest in our business and organization to secure the opportunities identified by the Company, and to ensure short and long term competitiveness. We are taking another step towards becoming a full scale provider within online casino and it is very exciting to be able to offer our partners a broader product portfolio which strengthens both business and customer value in our strategic delivery responsibility as a supplier. I am convinced that Net Entertainment is well positioned for 2012 and I look forward to another exciting year.

(1), The market share is based on the gross gaming yield with Net Entertainment’s customers in relation to the European online casino market, estimated by H2 Gaming Capital in December 2011.

Gaming software developer, Playtech, has just announced its acquisition of Ash Gaming. Playtech is already providing software solutions to a massive part of the online gaming industry and is one of the top suppliers of online gaming software. They have acquired Ash Gaming for a total of £23 million with the first £15.5 million being paid straight away and a further £7.5 million being paid over the next three years. The online gaming giant has been making acquisitions of online gaming companies throughout the industry and their latest deal takes the total to 11 acquisitions including 4 in 2011.

Playtech said that the acquisition "Enhances Playtech’s wholly-owned content library and value chain economics; complements Playtech’s technology leadership with additional premier content capability." The Playtech CEO Mor Weizer added that, "We see this as complementing our strategic actions by ensuring class leading content alongside our leadership in technology. Together this makes a powerful combination and by owning significant games content we will maximize both revenue and earnings across the value chain. In newly regulated markets both in Europe and other territories such as Canada, Ash Gaming’s content is set to gain considerable traction."

With Ash Gaming now a part of the Playtech empire it is expected that the online gaming firm will be able to increase the quality of the online gaming options that they provide to front end online casinos. Playtech is already well known for providing superior products to the online casino industry. Ash Gaming was founded in 2002 and specialises in innovation within the online gaming sphere.

This is good news for players at William Hill, which is powered by Playtech, as this means that their games are going to soon be seeing the innovations that Ash Gaming has become famous for. Players can expect to find that their favourite games are going to be even more fun to play in the near future.

Top Microgaming casinos, Red Flush Online Casino and Casino La Vida, announce the return of Seasons Winnings – a festive promotion that invites players to celebrate the Holiday Season with 42 days of Festive Giveaways.

Seasons Winnings was first introduced during December 2010 as a festive promotion in line with end of year activities worldwide. The event proved to be an overwhelming success with thousands of hopefuls taking part for a share of £50,000 in prizes. This year, Red Flush Casino and Casino La Vida will be hosting Seasons Winnings once more from November 28, 2011 to give players the chance to celebrate the Holiday Season with 42 days of Festive Giveaways.

"Seasons Winnings is back and this time round invites players to get their share of £100,000 in giveaways," said Alex Roberts, Red Flush Casino Promotions Manager.

Rather than a leaderboard tournament, Seasons Winnings will this year comprise of an Advent Calendar with daily promotions that can be claimed by all internet casino players alike. Each daily promotion is completely different from the next to keep players entertained throughout the Holiday Season, and allow them the chance to claim their share of £100, 000 in festive giveaways – which include Mystery Days with freespin rewards and loyalty bonuses.

The Calendar can be viewed via the Red Flush Seasons Winnings and Casino La Vida Seasons Winnings website, both of which currently display the daily promotions that can be claimed during the 42 day event. Red Flush Casino and Casino La Vida will additionally give players a chance to claim 5 complimentary spins on Santa’s Wild Ride every day for 42 days. A full description on how to qualify for the complimentary spins can be found on the website.

"The Seasons Winnings promotion is our way of thanking players for their loyal support throughout the year," added Roberts, " and this year Seasons Winnings promises to be even greater than before."

The Seasons Winnings promotion will commence on November 28, 2011 and run until January 8, 2012.