NETeller

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Here's what we have right now:

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From an online chat with poster BigBet:

"I can not answer that right at the moment, but Neteller is a online money transfer system we are not directly linked with the merchants.

NETELLER will continue to monitor events related to this bill and respond accordingly. Due to the timelines associated with this bill, and more specifically the 9 month period during which governing regulations will be drafted, we believe it is prudent to wait to see what the requirements will be before we would consider any changes to our business procedures and policies."

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From the Wall Street Journal:

Neteller Vows to Stay in the U.S.

A Neteller PLC executive said the British company, which handles payments for online gambling companies and others, will continue to operate in the U.S., despite the recent passage of antigambling legislation.

"We are staying in the U.S.," said Bruce Elliott, Neteller's executive vice president, marketing and sales, told a online gambling conference in Barcelona. "I don't think we have a very big problem."

The remarks come despite the surprise passage of legislation in Congress late last month that would forbid Internet casino companies from accepting U.S. financial transactions. The legislation is designed to prohibit U.S. banks and credit card companies from processing payments for illegal online gambling. President Bush is expected to sign the legislation Friday.

Neteller, which had 2.3 million customers at the end of 2005, generates around 85% of its earnings in the U.S. and Canada, with the remainder coming from Europe and Asia. Neteller said Oct. 2 that it was studying the impact of the law.
Some British Internet gambling companies, including PartyGaming PLC -- the world's largest online gambling group by market capitalization, which generates 76% of its revenue from the U.S. -- and 888 Holdings PLC said they planned to stop taking bets from U.S. customers if the bill becomes law.

Many online gambling sites don't deal directly with U.S. consumers, but instead work through online intermediaries like Neteller, which transfers money from bank accounts to online businesses for a fee. For example, when a U.S. gambler sets up an account, the money is first sent to Neteller, which in turn deals with the gambling site.

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[xpanda]

Neteller

For immediate release
Press release

19 October 2006
NETELLER PLC

Update on US position

Further to the Company’s announcement on 12 October 2006, NETELLER Plc today announced the following update in the light of the action on 13 October 2006 by US President George W Bush to approve and sign into law the SAFE Port Act incorporating the Unlawful Internet Gambling Enforcement Act of 2006 ("UIGEA” or the “Act”) which includes certain provisions to prohibit “unlawful internet gambling” by restricting gambling sites from accepting certain payments from US residents.

NETELLER, a company registered outside the US, will comply with the Act and its related regulations as if it were subject to the Act’s jurisdiction. This action is intended to ensure that the Company is able to continue to operate with the support of its principal commercial partners and to protect its shareholders, business partners, employees and reputation.

Various provisions of the Act, including the obligations of financial transaction providers such as NETELLER, remain unclear. This uncertainty should be largely resolved when the Secretary of the Treasury and the Board of Governors of the Federal Reserve System issue the regulations they are required to prescribe within 270 days.

In view of the importance of these issues, NETELLER has accelerated its review of the Act and all other relevant laws and pertinent developments. The Company also continues to closely monitor the regulatory situation and is determining what actions to take well before the conclusion of the 270-day rulemaking period.

In the interim, US-resident customers are able to use the NETELLER service as normal. The funds of US-resident customers are held in trust accounts and will be available for withdrawal, on demand. The ability to withdraw funds will exist regardless of the customer’s location or ability to transfer to any site.

NETELLER customers not resident in the US are not affected at all by the legislative changes in the US, and the Company will continue to operate its non-US business as normal, maintaining existing customer and merchant support across all the other markets it currently serves.

NETELLER remains focused on developing its business in line with its stated
strategic objectives including geographical and product diversification. The Company continues to launch localised services within the European market, most recently in Sweden and Denmark, and has plans for three further launches later this year. As well as focusing on the gaming sector outside of the US market, the Board considers the development of additional products and services for wallet users to be integral to its diversified market strategy. We expect to share more information on these initiatives in the coming months. The Company is committed to maximising shareholder value both in the short and longer term, and will explore all possible strategic alternatives, including utilising its substantial resources, to ensure the achievement of its strategic objectives.

The Company’s trading update for the third quarter will be issued on Tuesday, October 31st, 2006. In the meantime, the Company will endeavour to keep shareholders informed of any material developments as and when appropriate.



Enquiries:

NETELLER
Andrew Gilchrist, VP – Communications + 44 (0) 1293 555 726

Citigate Dewe Rogerson + 44 (0) 207 638 9571
Sarah Gestetner/Sebastian Hoyle/George Cazenove



Notes to Editors

The NETELLER Group
With over 3 million customers in 160 countries, 3,500 merchants, and over $7 billion in annual transactions, the NETELLER Group operates the largest independent online money transfer business in the world. The Group specializes in providing innovative and instant payment services where money transfer is difficult or risky due to identity, trust, currency exchange, or distance. Being independent has allowed the Group to support thousands of retailers and merchants in many geographies and across
multiple industries.

The Group is quoted on the London Stock Exchange’s AIM market, with a ticker symbol of NLR. NETELLER UK Limited is authorised by the Financial Services Authority (FSA) to operate as a regulated e-money issuer. For more information about the Group visit www.netellerplc.com.