Annual Information Update

12 April 2011

bwin.party digital entertainment plc

(the "Company")

Annual Information Update ("AIU") and 2010 Annual Report

1. AIU

In compliance with rule 5.2 of the Prospectus Rules the Company is submitting this AIU for the 12 month period to 12 April 2011.

The following is a list of all the announcements and filings of a regulatory nature made by the Company since the previous AIU.

A. Regulatory Information Service Announcements

All of the above announcements are available on the Company's website, www.bwinparty.com

B. Documents filed with Companies House Gibraltar

The above information is available from Companies House Gibraltar.

C. Documents lodged with the Financial Services Authority

The following is a list of all documents filed with the Financial Services Authority during the 12 month period and available to be viewed via the National Storage Mechanism or at the Company's registered office.

D. Disclaimer

Some or all of the information set out above may be out of date. The information in this document is a record only and the Company is not obliged to update it.

2. 2010 Annual Report

Following the release on 3 March 2011 of the Company's annual results announcement for the year ended 31 December 2010, its annual report and accounts for the year ended 31 December 2010 (the "Annual Report"), will be made available shortly, together with a document describing the combined bwin.party business and the notice of the Company's 2011 Annual General Meeting. These documents will be made available on the Company's website, www.bwinparty.com and copies will also be posted to the Company's shareholders and depositary interest holders that have elected to receive hard copies.

A. Disclosure and Transparency Rule 6.3.5

A condensed set of the financial statements for the year ended 31 December 2010 together with information on important events that occurred during that financial year and their impact on the financial statements, were contained in the annual results announcement made on 3 March 2011. That information, together with the information set out below, which is extracted from the Annual Report, constitute the material required by Disclosure and Transparency Rule 6.3.5 which is required to be communicated to the media in full unedited text through a Regulatory Information Service. This announcement is not a substitute for reading the Annual Report.

B. 2010 Annual Report Extracts

"Our risks

Our approach to assessing and managing our risks remained focused on asking ourselves 'what if?' In 2010 we held 12 major workshops to assess whether any individual risk had increased, decreased or become obsolete since it was last assessed; to identify any new risks, especially from recent key business events and; to identify the likelihood of a risk occurring and its possible impact on the Group.

The workshops also help to ingrain the importance of risk management throughout all business functions. Facilitated by the Internal Audit & Risk Management team, the workshops involve key people from each of the Group's prime functions including Technology, Marketing, Human Resources, Operations, Finance, Legal and Company Secretarial.

Two high-level workshops were conducted by the Executive Risk Committee in 2010 and attended by the Executive Directors, primarily to ensure that all strategic risks were identified and to reach a consensus on the significant risks resulting from the 12 functional workshops. Finally, the Audit Committee then reviewed the outcomes from all 14 workshops on two separate occasions.

Many of the threats and challenges faced by online gaming companies are similar to those faced by other leisure and entertainment industries. They include competition, changes to consumer tastes, maintaining healthy financial ratios in compliance with banking covenants, loss of key personnel and so on.

There are also certain risks that are more specific to PartyGaming and to the online gaming industry that deserve particular mention. They can be categorised under four main groups, being: technology, regulation, an unlevel playing field in online poker and taxation. Additionally, there are specific risks associated with PartyGaming's merger with bwin.

Technology

Beginning with the four main risk groups, our business runs on technology and improving our gaming platform and products is a never-ending and vital process that helps maintain our competitive edge, keeps us abreast of evolving consumer tastes and upholds our valuable reputation for offering responsible, safe and secure gaming.

Most of our gaming technology is proprietary, which means that we are better placed to manage risks associated with technological and regulatory change compared to competitors that are heavily reliant on third-party software and systems.

However, we share the industry's general risks that arise from sourcing broadband and communications, data management and storage services as well as a raft of other services from external suppliers. We seek to offset these risks through ensuring we are not overly reliant on any single supplier as well as having in place fully functional disaster recovery centres.

Regulation

Regulation is probably the most complex of our main risk groups and is a critical management process for the Group. Our international reach across many different regimes requires that we cater for what is a complex web of political and cultural attitudes towards online gaming. Our compliance obligations range from administration of our gaming licenses in Gibraltar, Italy, France and Alderney to assessing what impact country-specific and pan-regional rules and regulations might have on our business and the wider industry. Whilst attitudes towards online gaming as a leisure pursuit continue to evolve, there is always a risk that certain territories may seek to outlaw online gaming entirely or one or more of the products we offer.

We advocate that the best way to protect consumers is to license and regulate online gaming, a concept that is now being addressed by several countries around the world and particularly so in Europe: in 2010 France joined the UK, Malta and Italy by introducing online gaming regimes for online sports betting and online poker only (bingo and casino were excluded, at least for now). However, unlike the UK, the Italian and French governments have sought to ring-fence their national markets. Denmark is expected to follow the UK and Malta by adopting a more progressive regulatory model in 2011 with the regulation of poker, sports betting and casino games and at the same time allow its residents to play against players from other countries. Italy is poised to further liberalise its market with the opening of cash game poker, certain casino table games as well as online bingo. Spain, Germany, Greece and Holland are among several European countries that are now actively considering developing their own regulatory regimes.

We remain of the view that our conservative approach and proven management of regulatory compliance, together with the scale that we will enjoy following the merger with bwin will result in significant business opportunities over the medium to longer term.

Unlevel playing field in poker

Without regulatory change in the US, we and many other online poker operators can expect to continue to face a tough competitive environment, particularly against those sites that accept online gaming customers from the US. To mitigate the impact of this unlevel playing field in online poker, we are concentrating our efforts on operational excellence, increasing our brands' strength and keeping the consumer at the heart of everything we do.

Taxation

Taxation is the fourth category of risk which we believe is material. Group companies operate only where they are incorporated, domiciled or registered. Revenues earned from customers located in a particular jurisdiction may give rise to further taxes in that jurisdiction. If such taxes are levied, either on the basis of existing law or the current practice of any tax authority, or by reason of a change in law or practice, then this may have a material adverse effect on the amount of tax payable by the Group. We manage these risks by considering tax as part of our business planning.

Integration with bwin

The process of integrating PartyGaming and bwin is expected to be complex and represents a substantial challenge for the Directors and the rest of the management team. In particular, combining the resources of two groups that rely upon different technology platforms may prove costly and difficult to achieve technically. Second, the integration of the two groups is expected to require substantial management attention and other resources. While there can be no guarantee that all elements of the integration will be successful, both PartyGaming and bwin expect that the significant investment in planning and preparation that has already taken place will help to ensure a smooth transition. An in-depth analysis of the risks faced by PartyGaming and bwin and bwin.party can be found in the Circular and Prospectus published on 23 December 2010 and available at www.partygaming.com."

Directors' Responsibility Statement

"In accordance with DTR 4.1.12 of the FSA's Disclosure and Transparency Rules, the Directors confirm to the best of their knowledge:

(a) the Group's financial statements have been prepared in accordance with IFRS and Article 4 of the IAS Regulation and give a true and fair view of the assets, liabilities, financial position and profit and loss of the Group; and

(b) the Annual Report includes a fair review of the development and performance of the business and the financial position of the Group and the Company, together with a description of the principal risks and uncertainties that they face.

By order of the Board of Directors

Robert Hoskin

Company Secretary

3 March 2011"

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