NETELLER CUTS MORE JOBS

23 February 2007

Canadian and UK employees axed

Neteller plc continues to feel the consequences of US legislative and enforcer activities this week, and has announced that it plans to cut 250 jobs as part of its withdrawal from the US market.

The Isle of Man based e-wallet firm said 220 jobs will go at its operations in Calgary, Canada, and a further 30 will be lost in the UK. The job cuts will reduce Neteller's total workforce to 425, substantially down from a peak of 1 000 last year.

Neteller, whose main customers are online gambling firms, decided to pull out of the American market after US enforcers arrested Canadian company founders Stephen Lawrence and John Lefebvre recently, despite the duo having earlier relinquished all executive responsibilities in the company.

Neteller added that its shares, traded on the London Stock Exchange's junior AIM market, will remain suspended "in view of the continuing uncertainty."

The group reiterated that it expects to take a restructuring charge of US$1.1 million in 2006, rising to US$3.7 million this year.

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