PLAYTECH FIRST QUARTER RESULTS RELEASED

11 May 2007

Revenues up on Q4 but down over same period last year due to US situation

Online games developer and turnkey provider Playtech says total revenues for the first quarter 2007 are up on quarter 4 but lower than the same period last year when US players were welcome at the firm's licensees. Whilst total revenues rose 14 percent over the last quarter of 2006 to US$19.8 million, there was a 5 percent decrease when compared to quarter 1 revenues in 2006.

Financial Highlights

* Total revenues were $19.8 million, representing an increase of 14 percent on the $17.4 million achieved in Q4 2006 and a decrease of 5 percent on the $20.8 million in Q1 2006

* Casino revenue totalled $15.2 million, an increase of 7 percent from $14.3 million in Q4 2006 and a reduction of 17 percent from $18.3 million in Q1 2006

* Poker revenue totalled $4.2 million, an increase of 56 percent from $2.7 million in Q4 2006 and an increase of 102 percent from $2.1 million in Q1 2006

* On a pro forma basis, which excludes royalty contributions from the US in 2006, total revenues increased by 22 percent compared to Q4 2006. Compared to Q1 2006 total revenues increased by 85 percent. Calculated on the same basis:

* Casino revenue increased by 14 percent compared to Q4 2006 and increased by 62 percent compared to Q1 2006

* Poker revenue increased by 64 percent compared to Q4 2006 and increased by 257 percent compared to Q1 2006

Total revenue for the quarter included a contribution from the migrated licensees during part of the last month of the quarter. Playtech's revenues from the migrated licensees are being generated both from the licensees' poker activity (rake) and their side games activity. The second quarter of the year will include a full three month revenue contribution from these licensees.

The European segment has grown significantly over the past year and is expected to continue to show further growth following the Tribeca acquisition and as a result of internal growth from existing licensees. The slowing of the Asia Pacific segment is mainly attributed to the restructuring of one of the company's licensees, which is due to be completed by the end of the second quarter.

The company continues to develop its land-based product through its Videobet division. Videobet has concluded the development of its server based, LAN and stand-alone terminals and continues to invest in expanding its games offering portfolio to accommodate the requirement of the European, Asian and South American markets.

Mor Weizer, Chief Executive Officer, was in bullish mood in commenting on the results, and said:

"Playtech has started the year extremely well and this is likely to continue into the second quarter of the year. Recent changes across various regulated markets are creating significant business opportunities for Playtech, which we are actively pursuing. We look forward to developing these opportunities supported by our strong focus on product innovation and development."

The company reported that the merging of Tribeca licensees into its iPoker network had been completed a month ahead of schedule, doubling the number of players registered on the network and making it one of the largest on the Internet. A large portion of the migrated licensees have added the casino side games to their poker clients thus creating an additional revenue stream which will be reflected in the Company's casino revenues going forward.

Business opportunities in the European online gaming market had grown substantially and was expected to continue to do so, while the slowdown in its Asian segment was attributed to the restructuring of one of its licensees due to be completed by the end of Q2 2007.

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