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Jackpot Enterprises Files Q3 Results

In March the Company announced the establishment of the J Net Ventures I $80 million fund focused on Internet-related investments and the strategic alliance and acquisition of 35% of Digital Boardwalk. The Company had also announced its intention to change its name to J Net Enterprises, Inc., pending shareholder approval, to reflect its new business strategy.

As part of J Net Ventures I, the Company acquired a controlling interest in Meister Brothers Investments and its portfolio in nine Internet companies. The firm's principals, Todd Meister and Keith Meister, joined the Company as the office of the Co-President of the J Net Ventures Management Company. Additionally, Louis V. Gerstner III, formerly of Forstman Little & Co, joined the J Net investment management team. Members of the Fund's Advisory Board include Keith Ziffren of Ziffren Brittenham; Donald Greenberg, head of the Department of Computer Graphics at Cornell University; E.S.P. Das, former Vice Chairman, Investment Banking, Merrill Lynch, and Chairman, Jasmine Networks; and Jose Pepe Fanjul, Vice Chairman, President and COO of Flo-Sun Inc.

During the quarter, Los Angeles investment banking firm Koffler & Company was retained to advise the Company on the disposition of its gaming business. There have been numerous inquiries related to the gaming business and Koffler & Company has begun the process of exploring alternatives with interested parties.

Fiscal 2000 Third Quarter and YTD Results

For the nine months ended March 31, 2000, the Company reported diluted earnings per share of $.78 versus $.50 per share for the prior year comparable period. Net income for the nine months ended March 31, 2000 was $6.8 million compared to $4.3 million for the prior year period. Such increases were due principally to an increase in non-operating income relating to the receipt of a $13.5 million break-up fee from Players International, Inc. as a result of Players' termination of a merger agreement between the parties in August 1999 in favor of a higher offer from Harrah's Entertainment, Inc. and the gain from the sale of 1,014,400 shares of Players common stock.

Operating income for the quarter and nine months ended March 31, 2000 decreased $5.1 million and $10.4 million, from $2.2 million and $4.9 million for the quarter and nine months ended March 31, 1999 to an operating loss of $2.9 million and $5.5 million, respectively. Such decreases were due principally to four factors: (1) a significant decline in operating income generated at 15 former Albertson's locations in southern Nevada, which have been operated by Raley's since late September and early October 1999. Such decline was due primarily to (i) significantly lower revenues generated at these locations and (ii) the loss of such locations on February 1, 2000; (2) severance costs of $2.8 million paid to the former Chief Executive Officer in March 2000; (3) an operating loss of approximately $1.0 million and $3.0 million for the third quarter and nine months ended March 31, 2000, respectively, incurred at the locations of Rite Aid Corporation, a large customer, resulting from the failure of 12 new locations to achieve expected revenues, as well as from a decrease in revenues at existing locations of such customer; and (4) legal and settlement costs incurred in connection with Jackpot's litigation against Albertson's and Raley's.

For the quarter ended March 31, 2000, net income decreased $3.2 million, from $1.8 million for the quarter ended March 31, 1999 to a net loss of $1.4 million. Basic and diluted earnings (loss) per share was $(.16) for the third quarter ended March 31, 2000 versus $.21 for the prior year quarter. Earnings (loss) before interest expense, income tax, depreciation, amortization and other non-cash items ("EBITDA") for the quarter ended March 31, 2000 decreased $5.0 million, from $3.8 million for the prior year period to a loss of $1.2 million. Such decreases were due primarily to the four factors described above.

Cash and short-term investments at March 31, 2000 were $62.8 million compared to $54.9 million at June 30, 1999. For the nine months ended March 31, 2000, Jackpot's working capital increased $7.6 million, from $53.6 million at June 30, 1999 to $61.2 million at March 31, 2000. EBITDA for the nine months ended March 31, 2000 was $13.0 million, compared to $9.9 million for the prior year period. These increases were due primarily to the collection of the break-up fee and the sale of the Players common stock mentioned above.

Mr. Tessler stated, "We are very pleased to have recently entered into amended agreements with Rite Aid. The amendments, which are subject to certain approvals from the Nevada Gaming Commission, will reduce the location rent for our present locations by $2.5 million annually, and should significantly improve our operating performance at these locations."

About Jackpot/J Net Enterprises, Inc.

Jackpot Enterprises (NYSE:J - news), to be renamed J Net Enterprises, Inc. pending shareholder approval, recently announced a series of actions to leverage its assets, cash position and online and offline expertise to invest in and incubate innovative, Internet-related business-to-business and e-service enterprises and to support the migration of traditional businesses to the Internet.

As part of this shift, the Company has established J Net Ventures I, an $80 million fund focused on Internet-related investments. The Company is currently in the process of disposing of its gaming business.

For more information on J Net Enterprises, please visit http://www.jnettech.com.

Safe Harbor Statement: This press release contains forward-looking statements that involve risks and uncertainties. Such statements include management's expectations with respect to future operating results. The Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations in the Company's forward-looking statements. The Company assumes no responsibility to update the forward-looking statements contained in this release. Additional information on factors that may affect the operations, performance, development and results of the Company's business are discussed in filings of the Company with the Securities and Exchange Commission.

                    CONDENSED CONSOLIDATED BALANCE SHEETS
                            (Dollars in thousands)
                                 (Unaudited)

March 31,       June 30,
2000            1999

Assets
    Cash and cash equivalents                        $62,780        $47,637
    Short-term investments, at fair value                 --          7,292
    Other current assets                               2,866          3,500
      Total current assets                            65,646         58,429
    Property and equipment, net                       12,727         13,757
    Investments in internet-related businesses         7,969             --
    Other non-current assets                           5,211         10,109
      Totals                                         $91,553        $82,295

Liabilities and Stockholders' Equity
    Current liabilities                               $4,417         $4,794
    Other liabilities                                  4,375          2,887
      Total liabilities                                8,792          7,681
    Stockholders' equity                              82,761         74,614
      Totals                                         $91,553        $82,295


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars and shares in thousands, except per share data)
(Unaudited)
                             Three Months Ended          Nine Months Ended
                                  March                       March 31,
                             2000          1999          2000          1999
Revenues:
      Route operations     $21,445       $24,262      $66,689       $69,514
      Casino operations         --           314           --         1,016
        Totals              21,445        24,576       66,689        70,530

Costs and expenses:
      Route operations      19,371        19,964       62,170        58,027
      Casino operations         --           274           --           968
      Amortization             152           299          602           877
      Depreciation             975         1,003        2,956         3,074
General and
       administrative        3,845           867        6,459         2,664
        Totals              24,343        22,407       72,187        65,610

Operating income
     (loss)                (2,898)         2,169      (5,498)         4,920

    Non-operating, net         541           346       14,982         1,064

Income (loss)
before income tax     (2,357)         2,515        9,484         5,984
Provision (credit) for
    Federal income tax       (968)           704        2,703         1,675

    Net income (loss)     $(1,389)        $1,811       $6,781        $4,309

Basic earnings
(loss) per share       $(.16)          $.21         $.79          $.50
Weighted average number
of common shares        8,631         8,617        8,620         8,649
Diluted earnings (loss)
per share              $(.16)          $.21         $.78          $.50
Weighted average number of
common and common
equivalent shares       8,631         8,618        8,671         8,697


Contact:  James Ankner, 212-484-7697

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