Gallo to Lead Youbet in Nevada

29 July 2004

WOODLAND HILLS, California -- (PRESS RELEASE) --Youbet.com, Inc. (Nasdaq:UBET), the leading Internet advanced deposit wagering (ADW) company, announced today that Victor Gallo is leaving his General Counsel post to lead the company's response to recently enacted legislation permitting ADWs in Nevada. Gallo will become General Manager of Youbet in the State and will be responsible for developing new business opportunities in Las Vegas.

Gallo's successor is Scott Solomon, who joins Youbet from LA-based investment banking firm Houlihan Lokey Howard & Zukin where he was most recently Senior Vice President, General Counsel and Secretary of International Investment Banking. In that capacity, Solomon acquired substantial experience in mergers and acquisitions as well as general corporate legal affairs. Gallo and Solomon assume their new positions effective immediately.

"We've dispatched Vic Gallo to Las Vegas because he understands the nuances of Nevada gaming and the intricacies of ADW," said Youbet CEO Charles F. Champion. "No one in our company is better qualified to lead us through the complexities of doing business in Nevada.

"In Scott Solomon, we believe we have found a General Counsel who will ably assume Vic's corporate legal responsibilities," Champion continued. "At the same time, Scott brings us a valuable international dimension that we will tap as we explore opportunities and develop strategic partnerships for revenue growth with companies in Europe, Asia and other international jurisdictions."

Gallo was named General Counsel of Youbet in March 2003. Prior to joining Youbet, he was Vice President, Corporate Counsel for Las Vegas-based Konami Gaming, Inc., a wholly-owned slot machine manufacturing subsidiary of Konami Corporation, for three years.

Gallo began his career in 1992 as a JAG in the United States Air Force where he eventually became deputy chief advisor to the Air Force Legal Services Agency Commander on information technology, a post he held from 1995 to 1997. Following military duty, he practiced patent law with firms that handled intellectual property matters for corporate clients in gaming and non-gaming industries. He earned his Juris Doctor from University of the Pacific McGeorge School of Law.

In his capacity as general counsel at Houlihan Lokey, Solomon oversaw the legal aspects of acquisitions, strategic partnerships and joint ventures. He also had general corporate legal responsibilities related to finance, human resources, equity agreements and securities law. He served with the firm from 1997 to 2004.

Prior to his time with Houlihan Lokey, Solomon held increasingly responsible legal positions with companies in the real estate development, real estate brokerage, and retailing industries. He earned his Juris Doctor degree at the University of California at Los Angeles in 1985. That same year, he joined the Los Angeles office of Sidley & Austin where he practiced corporate law for the Chicago-based international firm from 1985 to 1988.

Youbet.com is the largest Internet provider of thoroughbred, quarter horse and harness racing content in the United States, as measured by handle data published by the Oregon Racing Commission. Members have the ability to watch and, in most states, the ability to wager on the widest variety of horse racing content available via Youbet.com's website.

Youbet.com members enjoy features that include commingled track pools, live audio/video, up-to-the-minute track information, real-time wagering information, phone wagering and value-added handicapping products.

Youbet.com is an official online wagering platform of Churchill Downs Incorporated and the Kentucky Derby. Youbet.com operates TotalAccess(SM), an Oregon-based hub for the acceptance and placement of wagers. More information on Youbet.com can be found at www.youbet.com.