888 HOLDINGS PLC (OTC:EIHDF)

Chairman's Statement

2011 has been a year of significant change, both for 888 as a business and in the ever-shifting landscape in which we operate. Changes made to the focus of the business and ongoing improvements to our market-leading offering, have helped to increase player numbers, build revenues and produce this excellent set of results. European regulation continued apace and there are a number of exciting initiatives in the United States seeking to regulate internet poker at both a federal and a state level. Which route will be undertaken and exactly when this will happen remains unclear, but the wheels are in motion and 888 is positioned to take advantage of any and all outcomes.

There were a number of changes to the Board and the senior management team in the period under review. Gigi Levy stepped down as CEO in April and I would like to thank Gigi for the contribution he made to the business during his tenure. The Board invited Brian Mattingley, our Deputy Chairman, to step into a more hands-on role within the business to help provide more focus on key areas of performance and deliver on our immediate objectives, following the outstanding achievements of the Group and his excellent performance during this period. I am delighted that Brian Mattingley has, in March 2012, been appointed as our full time Chief Executive Officer. I look forward to continuing to work closely with him in his new role.

It was also appropriate to undertake a review of the business requirements in terms of personnel and restructure the senior management team. As part of that restructuring, we appointed Itai Frieberger as Chief Operating Officer. Itai has a wealth of experience in the online world and has spent the last seven years with 888 in various senior management roles covering the full spectrum of disciplines within our company.

After the macroeconomic shocks of the previous financial year and the business challenges that accompanied them, the operating environment for 888 improved during 2011. There were also a number of notable strategic achievements which we believe will underpin our growth in the coming years: the finding of suitability by the Nevada Gaming Control Board and the Nevada Gaming Commission in respect of our relationship with Caesars Interactive Entertainment (Caesars), the significant upgrade to our back-office systems and the expansion of our agreement with Caesars to enter the US market when regulation is enacted. In addition the launch of Poker 6 which won industry accolades fuelled tremendous growth in our poker business.

We have refocused the business and, in doing so, created a strong and sustainable base for long-term growth. By continuing our customer-centric approach and offering innovative products and services that are both exciting and relevant, we expect to continue to be successful and deliver benefit to you, our shareholders.

888 Holdings Public Limited Company (888) is one of the world’s most popular online gaming entertainment and solutions providers.  888 has been at the forefront of the online gaming industry for over a decade, allowing both players and B2B partners to enjoy a world-class gaming experience. 888’s consumer facing websites offer more than just online gaming. They are entertainment destinations, places where people can enjoy a truly interactive experience and be part of an online community that shares common interests.  888 websites provide an enjoyable customer experience in a safe and secure environment. 888 remains a leader in responsible gaming, with specialist websites dedicated to both corporate responsibility and responsible gaming.