Youbet.com, Inc.
                 Consolidated Statements of Operations

                       Three months ended       Twelve months ended
                             Dec. 31,                Dec. 31,
                        2000         1999       2000          1999
                           (unaudited)

Revenues            $ 1,395,784 $  1,447,655 $ 5,992,311 $  3,773,577
Operating expenses:
  Network operations    830,098      545,411   3,267,371    2,105,312
  Research and
   development        1,476,228      817,722   3,776,752    2,372,872
  Sales and marketing 1,637,180    7,181,470   6,227,145   14,461,694
  General and
   administrative     2,865,841    3,266,716   7,787,906    7,381,177
  Depreciation and
   amortization         367,663      164,344   1,143,408      479,616
     Total operating
      expenses        7,177,010   11,975,663  22,202,582   26,800,671
Loss from operations (5,781,226) (10,528,008)(16,210,271) (23,027,094)
Other income (expense):
  Interest income       464,348      931,197   2,679,001    2,419,896
  Interest expense     (647,534)  (1,067,898) (3,113,595)  (3,106,111)
  Amortization of
   deferred financing
   costs                (27,993)     (85,754)   (203,915)    (285,567)
  Fair value of
   warrants issued for
   financing costs       (8,380)     (12,570)    (46,090)    (490,791)
  Other                  (2,545)      (9,258)    158,305        5,799
     Total other
      expense          (222,104)    (244,283)   (526,294)  (1,456,774)
Loss before
 extraordinary item
 and before provision
 for state income
 taxes               (6,003,330) (10,772,291)(16,736,565) (24,483,868)
Provision for state
 income taxes              (800)      (2,400)       (800)      (2,400)
Loss before
 extraordinary item  (6,004,130) (10,774,691)(16,737,365) (24,486,268)
Extraordinary item    7,708,126           --  14,995,964           --
  Net Income (loss) $ 1,703,996 $(10,774,691)$(1,741,401)$(24,486,268)

Net loss per common
 share -- basic and
 diluted before
 extraordinary items    $ (0.31)    $ (0.64)     $ (0.86)     $ (1.45)
Extraordinary item      $  0.40          --      $  0.77           --
Net loss per common
 share -- basic and
 diluted                $  0.09     $ (0.64)     $ (0.09)     $ (1.45)
Weighted average
 number of common
 shares outstanding  19,520,833   16,835,455  19,471,175   16,937,700


                           Youbet.com, Inc.
                      Consolidated Balance Sheets

                                             As of          As of
                                          December 31,   December 31,
                                             2000            1999

ASSETS
Current assets:
  Cash and cash equivalents              $ 12,094,172    $ 62,274,403
  Restricted cash                             107,867              --
  Receivables                                 322,460         211,474
  Interest and other receivables              490,692         319,162
  Prepaid expenses                            338,886         164,889
    Total current assets                   13,354,077      62,969,928
Property and equipment                      9,349,774       3,675,190
Less: Accumulated depreciation
 and amortization                          (2,077,275)     (1,298,416)
Property and equipment, net                 7,272,499       2,376,774
Deferred financing costs, net of amortization      --       1,440,324
Capitalized software                        2,542,506              --
Restricted cash                               920,805              --
Deposits and other                            181,290          71,341
    Total assets                         $ 24,271,177    $ 66,858,367

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                         $  1,604,137    $  3,128,386
Accrued compensation and related items        403,588         218,470
Accrued expenses                            1,587,042       2,194,506
Deferred revenues                               7,113         527,986
Current portion of capitalized
 lease obligation                               8,909          52,786
Total current liabilities                   3,610,789       6,122,134
Notes payable                                      --      39,814,163
Capitalized lease obligations,
 less current portion                              --           7,348
    Total liabilities                       3,610,789      45,943,645
Commitments and contingencies
Stockholders' equity:
  Preferred stock, $.001 par value --
   Authorized 1,000,000 shares, none
   outstanding                                     --              --
  Common stock, $.001 par value --
   Authorized 50,000,000 shares,
   19,520,850 and 19,360,934 shares
   outstanding as of Dec. 31, 2000 and
   1999, respectively                          19,521          19,361
Additional paid-in capital                 84,834,477      83,347,570
Accumulated deficit                       (64,053,610)    (62,312,209)
Notes receivable from stockholders           (140,000)       (140,000)
    Total stockholders' equity             20,660,388      20,914,722
    Total liabilities and stockholders'
     equity                              $ 24,271,177    $ 66,858,367