Youbet.com Reports Results For The Three-Month Period Ended March 31, 2010

Youbet.com, Inc. (NASDAQ: UBET) today announced its results for the three-month period ended March 31, 2010. The Company reported first quarter 2010 loss per diluted share from continuing operations of $0.01, compared to earnings per diluted share of $0.02 in the first quarter of 2009. Excluding $1.0 million in professional and legal fees related to the impending merger with Churchill Downs Incorporated, first quarter 2010 net loss per diluted share from continuing operations of $0.01 would have been earnings per diluted share of $0.01.

The following table sets forth certain operating data, income (loss) per share data and Youbet Express handle for the three-month periods ended March 31, 2010 and 2009.

(in 000's, except per share amounts)		Three months ended March 31,
		2010				2009				Change
Total revenue		$	25,965			$	28,048			$	(2,083	)
Gross profit (1)			8,465				9,365				(900	)
Net income (loss) from continuing operations			(527	)			836				(1,363	)
Loss from discontinued operations (2)			-				(16	)			16
Net income (loss)		$	(527	)		$	820			$	(1,347	)
Diluted income (loss) per share		2010				2009				Change
Income (loss) from continuing operations		$	(0.01	)		$	0.02			$	(0.03	)
Income (loss) from discontinued operations			-				-				-
Net income (loss) per common share		$	(0.01	)		$	0.02			$	(0.03	)
Youbet Express handle (3)		$	115,700			$	123,981			$	(8,281	)

(1)		Gross profit is total revenues less track fees, licensing fees, contract costs, equipment costs and network operations, each as calculated in accordance with accounting principles generally accepted in the United States (GAAP) and as presented on the condensed consolidated statements of operations included with this release.
(2)		Effective February 15, 2008, Youbet ceased operations at International Racing Group (IRG), and accordingly, has accounted for such operations retroactively as discontinued operations.
(3)		Amount wagered by players.

“We were very pleased that our shareholders recently voted to approve the acquisition of Youbet by Churchill Downs, and, subject to receipt of required regulatory approvals and other customary conditions to closing, we expect the transaction to close in the second quarter,” said Youbet President and Chief Executive Officer David Goldberg. "In terms of our performance, first quarter results were largely affected by $1.0 million in legal and other professional expenses directly related to the impending Churchill merger and the industry losing 9.2% of its thoroughbred racing days versus the prior-year quarter due to poor weather at many key tracks, continued overall weakness in the U.S. economy and significantly higher unemployment rates versus the prior-year quarter. We were also affected by the broadening of access to certain racing content. However, the impact of the general industry decline on the company was mitigated by our efforts to attract handle via our marketing activities, with the company’s handle in the first quarter declining 6.7% compared to the overall thoroughbred industry-wide decline of 10.4%. During the quarter, we saw an increase of 7% in weekly unique wagerers at Youbet Express, offset by a decline of 13% in the average handle per unique weekly wagerer versus the prior-year quarter. We continue to add new players each quarter and are beginning to see some reversal of the negative unemployment trends for the past few months.”