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With customers located around the world, PartyGaming's social responsibilities extend far beyond the communities where our offices are based. We have developed a successful business that spans many territories across the globe. That success is due in varying degrees to the resources and infrastructure provided by both local communities as well as society at large and we want to put something back - not just because we can, but because we believe it is right and because our employees want to as well. This isn't just about giving money, although that is what most people immediately think of. It is about making a contribution to society and that contribution is not just about dollars, pounds or euros - it can take a variety of forms. PartyGaming's philosophy is that we aim to donate both money and, through employee involvement, personal time to worthy causes, including gaming charities.

PartyGaming aims to give between 0.20% and 0.25% of its annual EBITDA to a broad variety of charitable causes. In 2006 we exceeded this target with total donations totaling $750,080 through donations to a number of charities involved principally with helping those with problems relating to gambling, cancer research, children and disaster and famine relief. The recipients of funds in 2006 included:

• Responsibility in Gambling Trust, GamCare and Gordon House
• Water Aid
• Oxfam East Africa Food Crisis Appeal
• Cancer Research UK
• British Heart Foundation
• British Red Cross Indonesia Earthquake Appeal
• Body and Soul - Families affected by HIV and AIDS
• Small Steps for Parents - Helping parents whose children suffer with motor and sensory impairment
• Cherry Trees - Respite care for children with learning and developmental disabilities
• Amber - Helping young unemployed people

In selecting the beneficiaries of monetary and other donations, we look to select charities that are efficient in terms of effective and low cost administration that results in more money going to where it is needed rather than being lost in delivering it.

In India, our Ivy Comptech subsidiary has set up a charitable body known as the Ivy Foundation with the aim of working in areas outside its business interests and to contribute in its own way to the development of the people of Andhra Pradesh, the state in which it is located. Through the Foundation, Ivy seeks to support welfare and the general well-being of the general public, to perform the role of a good corporate citizen as well as to discharge the social responsibility of a successful corporate enterprise. The Ivy Foundation is an autonomous body that will undertake charitable activities in the areas of education, health care, housing, welfare and general well-being of the general public in times of tragedy and emergency.

All of the Group's employees are also encouraged to organise one-off events throughout the year, raising money for charities of their choice. In the UK employees can also elect to give money every month to charities of their choice through a tax effective Payroll Giving scheme.

PartyGaming supports employee involvement in charities and at least matches the amount raised by employees. In 2006, for instance, we donated an additional $20,000 to a team from the London office who took part in a 5km 'fun run' for cancer research.

Charity, though, is much more than about making financial donations. PartyGaming employees are encouraged to spend at least one day every year on pro bono work in the local communities around their offices.

For example, In London in 2007 the local pro bono activities will be co-coordinated through City Action for Community Development. Established in 1998 by the Corporation of London, City Action acts as a free broker to facilitate the transfer of time, skills and resources between City of London-based firms and community-based organisations in the seven boroughs surrounding the City; Camden, Hackney, Islington, Lambeth, Southwark, Tower Hamlets and Westminster.

Engaging companies in practical activities enables them to contribute to the social and economic regeneration of the local community. City Action aims to put business at the heart of the community and so does PartyGaming. In 2007 we hope that our employees will again help us to put something back into the community where they live and work so that we can share a little bit of our success.