YOUBET.COM, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS


                      Three Months Ended            Year Ended
                          December 31,             December 31,
                       2001         2000         2001         2000
                          (Unaudited)                (Audited)

Revenues           $ 1,829,435  $ 1,395,784  $ 6,324,286  $ 5,992,311
Operating expenses
 Network operations    358,776      830,098    2,371,152    3,267,371
 Research and
  development          392,890    1,476,228    2,525,216    3,776,752
 Sales and
  marketing          1,191,451    1,637,181    4,925,346    6,227,145
 General and
  administrative     3,985,559    2,865,840    8,316,591    7,787,906
 Depreciation and
  amortization       1,396,155      367,663    3,330,104    1,143,408
   Total operating
    expenses         7,324,831    7,177,010   21,468,409   22,202,582
Loss from
 operations         (5,495,396)  (5,781,226) (15,144,123) (16,210,271)

Other income
 (expense):
 Interest income        30,561      464,348      375,356    2,679,001
 Interest expense       (5,842)    (647,534)     (26,865)  (3,113,595)
 Amortization of
  deferred financing
  costs                      -      (27,994)           -     (203,915)
 Fair value of
  warrants issued for
  financing costs            -       (8,380)           -      (46,090)
 Other                    (547)      (2,549)      (2,750)     158,305
   Total other
    income (expense)    24,172     (222,109)     345,741     (526,294)
Loss before taxes
 and extraordinary
 item               (5,471,224)  (6,003,335) (14,798,382) (16,736,565)
Provision for state
 franchise tax            (800)        (800)        (800)        (800)
  Loss before
   extraordinary
   item             (5,472,024)  (6,004,135) (14,799,182) (16,737,365)
  Extraordinary item         -    7,708,126            -   14,995,964
Net loss           $(5,472,024) $ 1,703,991 $(14,799,182) $(1,741,401)

Basic and diluted:
 Loss before
  extraordinary item
  per common share     $ (0.28)     $ (0.31)     $ (0.76)     $ (0.86)
 Extraordinary item          -         0.39            -         0.77
 Net loss per
  common share         $ (0.28)      $ 0.09      $ (0.76)     $ (0.09)

 Weighted average
  number of common
  shares
  outstanding       19,537,950   19,520,833   19,525,582   19,471,175


                           YOUBET.COM, INC.
                        SUMMARY BALANCE SHEETS

                            December 31, 2001        December 31, 2000
                                (Audited)                (Audited)

ASSETS
Cash and cash equivalents      $ 3,560,740             $ 12,094,172
Total current assets             4,439,946               13,354,077
Property and equipment, net      5,879,301                7,272,499
Total assets                  $ 19,885,573             $ 24,271,177

LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities      $ 3,634,404              $ 3,610,789
Total liabilities                3,634,404                3,610,789
Total stockholders' equity      16,251,169               20,660,388
Total liabilities and
 stockholders' equity         $ 19,885,573             $ 24,271,177