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WPT Enterprise reports results

LOS ANGELES, California -- (PRESS RELEASE) -- WPT Enterprises, Inc. (NASDAQ:WPTE - News) today announced financial results for the third quarter ended September 30, 2007. Business highlights for the quarter and through the date of this release include the delivery of three episodes of Season V of the World Poker Tour® (WPT) television series, progress in the online gaming business and hiring two key executives, Andy Goetsch, Executive Vice President of Online Gaming, and Rohin Malhotra, Managing Director of International Sales & Marketing. Additionally, the Company had a successful kick off of its inaugural season of the WPT China National Traktor™ Poker Tour in Lanzhou, Gansu, and launched its first tour stop in Spain at Casino Barcelona.

Financial Results

For the third quarter of 2007, total revenues were $4.4 million, compared to $5.9 million in the same period of 2006. The decrease was primarily a result of the delivery of fewer domestic television episodes delivered in the 2007 period. The Company reported a net loss for the quarter of $2.2 million, or $0.11 per share. This compares to net earnings of $2.7 million, or $0.13 per share, in the comparative 2006 period. The 2006 net earnings included a $2.7 million after-tax gain on the sale of shares of PokerTek, Inc.'s common stock.

"The third quarter represented continued progress for WPT Enterprises," said Steve Lipscomb, President and CEO of WPT Enterprises. "We reached exciting new milestones including the addition of an online casino offering on our online gaming site, WorldPokerTour.com, and kicked off the inaugural season of the WPT China National Traktor™ Poker Tour. Just a few weeks ago, we strengthened our management team with the hiring of Andy Goetsch and Rohin Malhotra. As we look ahead to the remainder of 2007 and into 2008, we are well positioned and confident in our ability to successfully execute our strategic plan."

Domestic television license fee revenues were $1.4 million in the third quarter of 2007, a decrease from $3.2 million in the third quarter of 2006. The decline was primarily the result of not delivering any episodes of the Professional Poker Tour® (PPT) television series in the 2007 period, versus the delivery of nine episodes of the PPT in the third quarter of 2006. This decrease in revenue was partially offset by the delivery of three episodes of Season V of the WPT television series in the third quarter of 2007 versus the delivery of one episode of Season V of the WPT in the 2006 period.

Online gaming revenues were $0.1 million in the third quarter of 2007, compared to $0.9 million in the prior year period. The decrease in online gaming revenue was due to lower levels of player activity, which was primarily a result of migrating less than 20% of our player database from WagerWorks, as well as not aggressively marketing the online gaming site. Hosting and sponsorship revenues increased to approximately $1.6 million from $0.2 million in the third quarter of 2006 due primarily to PartyGaming sponsorship revenues that did not exist in the same period of 2006, and sponsorship revenues from the airing of seven Season V episodes in the third quarter of 2007.

In the third quarter of 2007, cost of revenues decreased to $1.4 million from $1.7 million in the third quarter of 2006. The decline was primarily a result of a decrease in online gaming costs of $0.4 million, which was due to lower online gaming revenues, as mentioned above. Overall gross margins were 69% in the third quarter of 2007, compared to 70% in the third quarter of 2006. In the third quarter of 2007, domestic television licensing margins were 42% compared to 73% in the same period in 2006. The decrease was primarily because of the delivery of nine episodes of the PPT television series in 2006 for which the production costs had been expensed in an earlier period. The lower domestic television margins in the 2007 period were largely offset by increased margin contribution from sponsorship and international television.

In the third quarter of 2007, selling, general and administrative expense increased to $5.7 million from $4.5 million in the third quarter of 2006. The increase was primarily due to higher headcount and operational costs in online gaming, as well as increased costs associated with the launch of WPT China.

At September 30, 2007, the Company had no debt, and total cash, cash equivalents and investments in marketable securities of approximately $34.9 million.

2007 Outlook

For the fourth quarter of 2007, revenues are expected to be in the range of $4.0– $4.5 million. Additionally, the Company expects:

* To deliver five episodes of Season VI of the WPT television series to GSN in the fourth quarter of 2007.

* Lower gross margins for domestic television as a result of the terms of the Season VI agreement.

* To recognize PartyGaming sponsorship revenues as episodes are aired during the fourth quarter of 2007.

* Moderate progress in online gaming in the fourth quarter. In the first quarter of 2008, we will launch an aggressive marketing and promotions campaign.

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