PartyGaming Plc
14 December 2006


                                                               14 December 2006

                                PartyGaming Plc

('PartyGaming' or the 'Company' and, together with its subsidiaries, the 'Group')


                            Pre-close trading update


Immediately following the passing of the Unlawful Internet Gaming Enforcement
Act (the 'Act') on 13 October 2006, the Group ceased to offer real money games
to US customers.  Whilst the immediate challenges following the passing of the
Act were significant, revenues were stabilised quickly and more recently the
Group has begun to see improvements in a number of its key performance
indicators.  Excluding sports betting, gross daily revenue in the last four
weeks of trading to 11 December 2006 has averaged approximately $921,000 per day
and overall player volumes have averaged approximately 52,000 active players per
day.


Gross daily poker revenues are averaging $721,000 per day, having hit a low of
$637,000 per day after the Act was passed, reflecting the loss of a number of
higher-raking non-US players to privately-owned poker sites that are continuing
to offer games to customers in America and therefore, at certain times of the
day, may have higher levels of player liquidity.  Overall yield per active
player day has been affected by the loss of higher-raking players, but this has
been partially mitigated by strong levels of new player sign-ups that have
averaged over 1,400 per day since the Act was passed.


Gross casino revenue, including bingo and backgammon, has been steady, averaging
approximately $199,000 per day. In sports betting, Gamebookers has averaged
daily gross win of approximately $65,000 per day since its acquisition on 3
August 2006, whilst PartyBets was released in mid-November to a limited number
of our customers.


The Group's most important market is now Europe, Middle East and Africa 
('EMEA'), representing approximately 80% of total new player sign-ups and 67% of
total gross daily revenue. The Americas, which includes Canada, Latin America
and South America, account for approximately 15% of total new player sign-ups
and 27% of total gross daily revenue.  Asia Pacific remains a relatively small
contributor to total revenue.


The realignment of the Group's infrastructure is almost complete with staff
reductions and other initiatives on track to realise substantial cost savings on
an annualised basis.  While operating margins fell significantly following the
passing of the Act, as customer volumes and revenues grow, operational gearing
should allow operating margins to increase.  A total of 945 jobs have been made
redundant across the Group, representing approximately 41% of the total prior to
the Act being passed.  The total cash costs associated with the restructuring
are expected to remain within the previous guidance given at the time of the Q3
KPI announcement on 20 October 2006.  As at 30 November, the Group had total net
cash (cash less interest bearing bank debt and overdrafts) of over $46.0m.


The rapid development of the Group's product base has continued.  PartyBets.com
is now live and is being progressively marketed to our poker and casino
customers. Virtual racing was added to the PartyCasino product range in late
November and PartyBingo.com was formally launched in the UK at the beginning of
this month.  The first of our multi-lingual versions of PartyPoker.com was
launched in German on 21 November 2006 with further languages planned over the
coming months and a multi-currency offering expected in 2007.


Brian Larcombe and Nigel Kenny have expressed an intention to step down from the
Board and this will take effect at the end of the year.  The Board would like to
thank them for the enormous contribution they have made as non-executive
directors of the Company.


The next scheduled announcement will be the Group's preliminary announcement of
results for the year ending 31 December 2006 and will be made on 1 March 2007.


Contacts:


PartyGaming Plc                                              +44 (0)20 7337 0100

Peter Reynolds, Director of Investor Relations
John Shepherd, Director of Corporate Communications


Financial Dynamics                                           +44 (0)20 7831 3113

Edward Bridges / Juliet Clarke


Conference call


Thursday 14 December 2006

For analysts and investors there will be an opportunity to put questions to
Mitch Garber, Chief Executive Officer and Martin Weigold, Group Finance
Director, by way of a conference call to be held at 9.00am on Thursday 14
December, 2006.  The details of the call are as follows:


Dial-In No:                     +44 (0) 1452 562 815 (UK)
                                +1 866 629 0054 (US)

Password:                       PartyGaming

UK Replay no:                   +44 (0) 1452 550 000 (available for 1 week)

Replay passcode:                3325254

US Replay no:                   +1 866 247 4222 (available for 1 week)

Replay passcode:                3325254


All times are Greenwich Mean Time.



This announcement includes statements that are, or may be deemed to be,
'forward-looking statements'. By their nature, forward-looking statements
involve risk and uncertainty because they relate to future events and
circumstances. Forward-looking statements may and often do differ materially
from actual results. Any forward-looking statements in this announcement reflect
PartyGaming's view with respect to future events as at the date of this
announcement. Save as required by law or by the Listing Rules of the UK Listing
Authority, PartyGaming undertakes no obligation publicly to release the results
of any revisions to any forward-looking statements in this announcement that may
occur due to any change in its expectations or to reflect events or
circumstances after the date of this announcement.


                      This information is provided by RNS
            The company news service from the London Stock Exchange