NETELLER, after the Unlawful Internet Gambling Enforcement Act of 2006

NETELLER is doing quite well.

Third Quarter NETELLER Trading Update Shows Continued Solid Progress

Tuesday, 6 November 2007 – NETELLER Plc (LSE: NLR), the world’s leading independent global online payments business, today announces its trading update for the three months ended 30 September 2007.

Highlights

* Continued progress to be pre-eminent provider of online gaming sector related payments solutions
* Active customers (ex North America) up 14% to 94,925 in Q3 2007 from 83,627 (Q3 2006)
* Total revenue in Q3 2007 was US$ 16.9m – fee revenue ex-interest increased 25% from Q3 2006
* European revenue in Q3 2007 grew 19% to US$ 8.4m and Asia Pacific revenue grew 41% to US$ 3.0m both compared to Q3 2006 figures (ex-interest)
* Gross margin in Q3 2007 was 60%, compared to 55% in H1 2007
* Loss before tax in Q3 2007 was US$ 145.9m due to US forfeiture and related US expenses
* Cash at 30 September 2007 was US$ 149.4m; US$ 40m paid to US authorities on 15 October 2007
* Cash flow from operations positive in Q3 2007

Ron Martin, President & Chief Executive Officer of NETELLER, said “The third quarter has demonstrated the resilience of the NETELLER business and the results from our European and Asia Pacific businesses show that we are regaining the trust of customers and continuing to deliver innovative solutions to our merchants. Geographic diversification remains a key part of our growth strategy although the Board continues to be mindful of regulatory concerns in certain markets.

Our strong presence at EiG in Barcelona reiterated our commitment and focus to the online gaming sector and I believe we are progressing well in one of our core mission objectives, to be the pre-eminent provider of payment solutions for selected markets in the online gaming sector. The launch of the first phase of our global card programme is proceeding as planned and we are on track to offer additional card-related services during the first half of 2008.

The Board remains confident about prospects for the business for the full year and beyond.”