YOUBET.COM INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

                         Three Months Ended         Nine Months Ended
                              Sept. 30,                 Sept. 30,
                          2001         2000         2001        2000

Revenues           $ 1,129,925  $ 1,386,930  $ 4,494,851  $ 4,596,527
Operating expenses
 Network operations    632,782      892,375    2,012,376    2,437,273
 Research and
  development          709,796      948,796    2,132,326    2,300,524
 Sales and marketing 1,112,248    1,259,901    3,733,895    4,589,964
 General and
  administrative     1,639,943    1,852,083    4,331,032    4,922,066
 Depreciation and
  amortization         816,608      300,996    1,933,949      775,745
    Total operating
     expenses        4,911,377    5,254,151   14,143,578   15,025,572
Loss from
 operations         (3,781,452)  (3,867,221)  (9,648,727) (10,429,045)

Other income (expense):
 Interest income        61,953      604,741      344,795    2,214,653
 Interest expense       (8,814)    (570,423)     (21,023)  (2,466,061)
 Amortization of
  deferred financing
  costs                     --      (41,990)          --     (175,921)
 Fair value of warrants
  issued for
  financing costs           --      (12,570)          --      (37,710)
 Other                      84      (90,813)      (2,203)     160,854
    Total other income
     (expense)          53,223     (111,055)     321,569     (304,185)
Loss before
 extraordinary item (3,728,229)  (3,978,276)  (9,327,158) (10,733,230)
  Extraordinary item        --           --           --    7,287,838
Net loss           $(3,728,229) $(3,978,276) $(9,327,158) $(3,445,392)

Basic and diluted:
 Loss before
  extraordinary item
  per common share     $ (0.19)     $ (0.20)     $ (0.48)     $ (0.55)
 Extraordinary item         --           --           --         0.37
 Net loss per
  common share         $ (0.19)     $ (0.20)     $ (0.48)     $ (0.18)

 Weighted average number
 of common shares
 outstanding        19,522,523   19,513,733   19,521,414   19,454,623


                            YOUBET.COM INC.
                        SUMMARY BALANCE SHEETS

                                    Sept. 30, 2001  Dec. 31, 2000
                                      (Unaudited)      (Audited)

ASSETS
Cash and cash equivalents             $ 4,993,839   $ 12,094,172
Total current assets                    5,945,919     13,354,077
Property and equipment, net             6,335,653      7,272,499
Total assets                         $ 25,295,295   $ 24,271,177

LIABILITIES AND STOCKHOLDERS'
EQUITY
Total current liabilities             $ 3,324,656    $ 3,610,789
Total liabilities                       3,324,656      3,610,789
Total stockholders' equity             21,970,639     20,660,388
Total liabilities and stockholders'
 equity                              $ 25,295,295   $ 24,271,177