Optimal Group Inc. announced unaudited consolidated financial results for the third quarter and nine months ended September 30, 2009. For the quarter, revenues were $33.3 million compared to $52.1 million for the third quarter ended September 30, 2008. The year-over-year decrease in revenues in the third quarter is attributed primarily to: the desire by retailers to maintain lower levels of inventory, resulting in their issuing purchase orders and accepting delivery only later in the buying season; continuing changes in business model whereby, the company attempts to sell more goods directly to consumers and; a generally unfavourable retail environment. Loss from continuing operations before income taxes was $8.6 million compared to $0.9 million for the same period a year ago. Net loss from continuing operations was $8.5 million compared to $0.7 million for the same period a year ago. Net loss in the third quarter ended September 30, 2009 was $27.1 million or $5.25 per share compared to a net earnings of $1.7 million or $0.33 per share in the third quarter ended September 30, 2008. The net loss for the third quarter ended September 30, 2009 includes a charge of approximately $19.2 million in connection with the non-prosecution agreement entered into by the company on October 30, 2009 with the Office of the United States Attorney for the Southern District of New York. Cash used in operating activities were $5.6 million compared to $4.3 million for the same period a year ago. The company spent $0.9 million on purchase of property, equipment and intangible assets compared to $0.8 million for the same period a year ago. For the nine months, loss from continuing operations before income taxes was $37 million compared to $18.5 million for the same period a year ago. Net loss from continuing operations was $36.2 million compared to $19.2 million for the same period a year ago. Net loss was $54.1 million or $10.50 per basic and diluted share compared to the net loss of $54.7 million or $10.57 per basic and diluted share for the same period a year ago. Revenues were $41.9 million against $72.5 million for the same period a year ago. Cash used in operating activities were $19.5 million compared to $9.6 million for the same period a year ago. The company spent $2.1 million on purchase of property, equipment and intangible assets compared to $3.9 million for the same period a year ago. The company expects revenues to remain under pressure in 2009 as a result of continuing retail softness driven by a continued pull-back in consumers' willingness to spend and retailers' desire to reduce inventories, weakening foreign exchange in international markets, and the sale of fewer toy and entertainment-related products.

Optimal Group Inc. reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2009. Loss from continuing operations before extraordinary item was $8.9 million, net loss from continuing operations was $1.64 per basic and diluted share against loss from continuing operations before extraordinary item of $1.2 million, net loss from continuing operations of $0.14 per basic and diluted share reported a year ago. For the nine months period, the company reported loss from operations before extraordinary items of $37.9 million, net loss from continuing operations of $7.04 per basic and diluted share against loss from operations before extraordinary items of $19.6 million, net loss from continuing operations of $3.7 per basic and diluted share last year.

Optimal Group Inc. announced that it has entered into a non-prosecution agreement with the Office of the United States Attorney for the Southern District of New York. Following announcements by the Office of the United States Attorney for the Southern District of New York relating to its investigation of the U.S. Internet gambling industry, the Company announced on May 8, 2007 that it had initiated discussions with the U.S. Attorney's Office and it was in the process of responding to a voluntary request for information issued by the U.S. Attorney's Office. In connection with such ongoing investigation, the Company announced on May 11, 2007 that it had received a copy of warrants of seizure issued by the U.S. Attorney's Office against funds of certain payment processors that were on deposit with two U.S. banks, which included $19,182,418.18 on deposit to the credit of the Company's affiliates. Under the terms of the non-prosecution agreement, a total of $19,182,418.18 will be forfeited to the United States by the Company and its subsidiaries, as disgorgement of property involved in and proceeds received from the payment processing services that were provided by the Company's subsidiaries to Internet gambling merchants in relation to U.S. customers of such merchants. Optimal and the U.S. Attorney's Office have agreed that the $19,182,418.18 previously seized, which is presented as restricted cash on the Company's consolidated balance sheets, shall be applied to satisfy the forfeiture obligation.