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WEDNESDAY MAY 24, 6:30 AM EASTERN TIME
YOUBET.COM TO BUY BACK AND RETIRE
SENIOR CONVERTIBLE NOTES
LOS ANGELES--May 24, 2000--Youbet.com, Inc. (Nasdaq:UBET -news), the leading
global online live sporting event, entertainment and wagering Company, today
announced that it is buying back and retiring approximately $17.3 million or
46% of its senior convertible debt at a cost of approximately $9.9 million,
which will result in a gain of approximately $6.9 million to be recognized in
the Company's second quarter ended June 30, 2000.
Robert M. Fell, Chairman and CEO of Youbet.com, said, "We are in a solid cash
position, with over $52 million in cash on the balance sheet at March 31, 2000.
We believe that our remaining cash balance is sufficient to continue the
aggressive execution of our business plan until we reach cash flow positive
operations. Because of this strong position, we took this opportunity to buy
back almost half of our senior convertible debt and significantly reduce our
cost of capital to the benefit of the Company and our shareholders."
Youbet.com currently provides network members the ability to watch and, in most
states, the ability to wager on a wide selection of coast-to-coast thoroughbred
and harness horse racing, via its exclusive closed-loop network. Youbet.com does
not actually accept or place any wagers. Wagers are accepted and placed only by
a state licensed wagering entity, currently the Ladbroke Pennsylvania facility.
Youbet.com's role in the wagering process is limited to transmitting information
related to the wagers to the licensed wagering facility. Members have 24-hour
access to the network's features, including live racing from a choice of more
than 45 racetracks across the country, commingled track pools, live audio/video,
up-to-the-minute track information, real-time wagering information, and
value-added handicapping products. For further information, visit
www.youbet.com.
Forward-Looking Statements: This release may contain forward-looking statements,
which are made pursuant to the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Expressions of future goals and similar
expressions reflecting something other than historical fact are intended to
identify forward-looking statements, but are not the exclusive means of
identifying such
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statements. These forward-looking statements involve a number of risks and
uncertainties, including the timely development and market acceptance of
products and technologies, successful integration of acquisitions, the ability
to secure additional sources of financing, the ability to reduce operating
expense and other factors described in the Company's filing with the Securities
and Exchange Commission. The actual results that the Company achieves may differ
materially from any forward-looking statements due to such risks and
uncertainties. The Company undertakes no obligations to revise or update any
forward-looking statements in order to reflect events or circumstances that may
arise after the date of this release. You Bet is a registered trademark of
Youbet.com, Inc. All other brands and products referenced herein are the
trademarks or registered trademarks of their respective holders.
CONTACT:
Youbet.com
Phillip Hermann, 310/444-3300
or
Morgen-Walke Associates, Inc
John Swenson, Heather Steele, 415/296-7383
(Investor Relations)
Christopher Katis, 415/296-7383 (Financial Media)
or
Brener Zwikel & Associates
Steve Brener, 818/344-6195 ext. 103
Jordan Miller, 818/344-6195 ext. 110
