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Youbet.com completes United Tote acquisition


February 15, 2006     E-mail this page to a friend!

Woodland Hills, CA, Feb. 13 – Youbet.com, Inc. (NASDAQ:UBET) announced that it completed its previously announced acquisition of privately held Untied Tote Company for approximately $31.9 million, plus the assumption of approximately $14.7 million of United Tote secured debt (primarily related to the financing of equipment that is leased to United Tot’s track customers). The adjusted purchase price is $2 million less than the previously announced purchase price. The acquisition of United Tote is expected to be accretive to Youbet’s fiscal 2006 operating results.

Youbet financed the acquisition by delivering to UT Group, LLC, United Tote’s former owner, the following consideration:
· $1.0 million from the purchase escrow account previously funded by Youbet;
· Approximately $8.7 million from its cash reserves;
· $5.2 million one-year unsecured promissory note;
· $3.2 million two-year unsecured promissory note;
· $1.8 million two-year unsecured promissory note; and
· 2,181,818 shares of Youbet.com common stock, valued at $5.50 per share.

Commenting on the completion of the acquisition, Youbet Chairman, President and CEO, Charles F. Champion, stated, “We are excited about closing a strategically important acquisition that benefits our shareholders by creating a combined entity with strong growth prospects. We expect that the adjusted purchase price and financing terms will help us achieve both near- and long-term earnings accretions.

“Our acquisition of United Tote furthers our efforts to be the pari-mutuel industry’s leading end-to-end technology provider. The acquisition also brings to Youbet several exciting new products, including innovative racing and sports contest offerings. We plan to introduce some of these new products to our current and new customers alter this year and, in doing so, we believe that this proprietary game content can quickly achieve a critical mass of players that will lead to prize payouts that can be “life-altering”.

Youbet.com is a diversified provider of technology and pari-mutuel horse racing content for consumers through Internet and telephone platforms and is a leading supplier of totalizator systems, terminals, and other pari-mutuel wagering services and systems to the pari-mutuel industry through its United Tote subsidiary. Youbet.com’s International Racing Group subsidiary is the only offshore pari-mutuel wagering company to be licensed by a U.S. racing regulatory jurisdiction.

Founded in 1959, United Tote is a leading supplier of totalizator systems, terminals and other pari-mutuel wagering services that process more than $7 billion in handle (wagers) annually on a global basis, approximately 90 percent of which is North American pari-mutuel handle. United Tote supplies pari-mutuel tote services to approximately 94 racing facilities in North America, including Churchill Downs and New York Racing Association tracks, and 11 facilities in Korea, Mexico, Spain and other foreign markets.

For more information on Youbet’s acquisition of United Tote, visit www.youbet.com.