NetEnt | Better Gaming



January – December 2007
· Net sales increased by 32.2% to SEK 132.0 (99.8) million
· Result after taxes increased by 61% to SEK 45.9 (28.5) million
· Net profit margin 34.8% (28.5%)
· Profit per share SEK 1.16 (0.72)
· 18 new CasinoModule™ license agreements signed
October – December 2007
· Net sales increased by 17.1% to SEK 36.3 (31.0) million
· Result after taxes increased by 35% to SEK 13.8 (10.2) million
· Net profit margin 38.0% (33.0%)
· Profit per share SEK 0.35 (0.26)
· 5 new CasinoModule™ license agreements signed
· Proposed dividends of SEK 0.75 (0.25) per share
· Decision made to apply for listing at OMX Exchange Stockholm, Small Cap

Comments from Johan Öhman, CEO
“Net Entertainment’s Q4 development was good, and net sales increased 12.5%
compared to Q3. The 32.4% total net sales increase for 2007 should be compared
with an average 23% increase for European online gaming1. Successful product
development and continued strong market growth are major reasons for our
success. Incoming orders continue to pour in, and we signed five new
CasinoModule™ license agreements during Q4, for a total of 18 in 2007.

During 2007 we gradually reduced our dependency on consultants through a
successful recruiting program. We hired 14 new staff, mostly to the technical
department, which allowed us to increase development and produce more advanced
games. We issued four product releases in 2007 with 23 new unique games (43
including variations), which gives us a major competitive advantage. Net
Entertainment is established as a major player in online gaming – a position
that we will continue to strengthen through our accelerated development rate
and broad product portfolio. As a step in this direction, we are preparing to
start development in the Ukraine during Q1 2008.

During Q4 2007, Net Entertainment divested its subsidiary Feliz Europa in Costa
Rica and gathered all commercial-oriented operations into Net Entertainment
Malta Ltd. Hosting will continue to be offered in Costa Rica through our
company in Malta.

The online gaming market is predicted to continue to grow positively, which
benefits us through the organic growth of our current licensees. I believe that
we are also better equipped than ever to win new strategic deals and thereby
further reduce our dependency on existing customers.”

1) Global Betting and Gaming Consultants, 15 Jan 2008
About Net Entertainment
Net Entertainment NE AB (Parent company with corporate identification number
556532-6443) and its subsidiary Net Entertainment Malta Ltd (together, the
Group) is a leading supplier of digitally distributed software. The company was
established in 1996 and has a customer base of more than 50 international
gaming companies. Revenues consist of royalties based on income generated with
the company’s products as well as other sales revenues. Net Entertainment is a
pure development company and therefore does not operate any gaming sites of its
own. The company is internationally recognized as a vendor of innovative, high
quality products and services.

The Group has its head office in Stockholm where all technical development is
undertaken, and an office in Malta where all commercial operations including
sales, marketing and product management is conducted.

The parent company has been listed on Nordic Growth Market (NGM) Equity since
April 5, 2007. The Board of Directors has decided to apply for listing at OMX
Exchange Stockholm, Small Cap during 2008.
Developments during Q4 2007
Net sales for Q4 2007 increased to SEK 36.3 (31.0) million, a 17.1% rise
compared to Q4 2006. Operating profit rose to SEK 15.2 (12.6) million, which
resulted in an operating margin of 41.9% (40.8%). During the quarter, five new
CasinoModule™ license agreements were signed.

Net Entertainment repaid the remaining SEK 4.7 million of a loan from its
previous parent company Betsson. Net Entertainment is now completely debt-free.

(for complete report see attached file)