"In its current (April 5 cover date) issue, mailed to subscribers this week, Forbes projected that legislation proposed by U.S. Senator Jon Kyl (R-Ariz.) and 'likely to become law... would outlaw bets across state lines'" said Youbet.com Chairman Robert Fell. "However, contrary to this article, the Kyl bill, as released today, would have no negative impact on the way Youbet.com and the racing industry conduct their business. We view this bill very positively. The horse racing industry has worked very closely with Sen. Kyl's office, and we believe that they understand that horse racing is already a well-regulated industry at the state level. They also understand that with meaningful restrictions, the Internet is a medium that is important to the future of horse racing in this country. Restrictions, such as using a secure, closed-loop, subscriber based system, and strict safeguards against youth gambling, are current requirements of the Youbet.com system," Fell said.

"Youbet.com complies today with all these conditions," Fell said. "If Sen. Kyl's proposed legislation becomes law, it will require no changes in our network operations."

"While we appreciate Forbes mentioning the comparison between Youbet.com to Amazon.com, the article nonetheless has some inaccuracies that shareholders have requested we clarify, in addition to those related to regulation," Fell said, including a mis-statement of the company's revenues and an incomplete description of the company's relationships with horse racing tracks.

Other factual corrections are:

• the article states that Youbet.com's "revenues to date total a mere $100,000." That figure represents revenues only through September 1998, the last publicly reported numbers. Since the company had only begun public operations in July of 1998, the figure is not representative of Youbet.com's ongoing business. The number significantly understates the current revenues of Youbet.com, who only began charging customers for service earlier this year.
• the article states that Youbet.com charges customers $5.95 a month "plus a cut of each bet." In fact, the customer pays only the $5.95 a month subscription fee; Youbet.com receives a fee equating to a percentage of each bet from Ladbrokes, not from the customer. The customer does not pay any surcharges on wagers and receives exactly the same payoff as if he were at the track.
• the article describes "exclusive" contracts between certain horse tracks and a Youbet.com competitor without mentioning that some of these tracks already have non-exclusive relationships with Youbet.com.
• the article did not incorporate Fell's statement that if any state enacts legislation over economic concerns regarding their citizens ("bettor poaching"), Youbet.com can resolve the concern by establishing a "hub" operation within that state or working out other economic arrangements, and is prepared to do so.

Youbet.com, Inc. announced in 1998 the public release of the You Bet Network, the only interactive online horseracing network in the U.S. Youbet.com provides members the ability to watch and wager through Ladbroke/USA on a wide selection of coast-to-coast thoroughbred and standard- bred horseracing, via its exclusive private closed loop network. Members have 24 hour access to the network's features, including live racing from a choice of over 20 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.

Youbet.com, Inc. is a Los Angeles-based interactive technology company that facilitates live events and is focused on content development, network deployment, and management services via a cross-platform environment. Youbet.com's mission is to be the premier technology and service provider for interactive wagering worldwide, and to create a widely accessible interactive race and sports environment, filled with rich and exciting content. In December 1998, You Bet accepted the "1998 Innovator of the Year Honors by Internet Gaming International.

This release contains forward-looking statements, which are made pursuant to the safe-harbor provisions of the Private Securities Litigations 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 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 filings 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.