WPTE - 3rd Qtr Conf Call - 11/8

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World Poker Tour Third Quarter 2005 Earnings
Scheduled to start Tue, Nov 8, 2005, 4:45 pm Eastern

Link (http://biz.yahoo.com/cc/5/62565.html)

LOS ANGELES, Nov. 1 /PRNewswire-FirstCall/ -- WPT Enterprises, Inc. (Nasdaq: WPTE - News) today announced that after the close of trading on Tuesday, November 8, 2005, it will release financial results for the three months ended October 2, 2005. The Company also said that the Company's President and Chief Executive Officer, Steve Lipscomb, and the Company's Chief Financial Officer, Todd Steele, will host an investor conference call that same day, at 4:45 p.m. Eastern Standard Time.

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LOS ANGELES, Nov. 7 /PRNewswire-FirstCall/ -- WPT Enterprises, Inc. (Nasdaq: WPTE - News), the creator of the WORLD POKER TOUR® (WPT), today unveiled its redesigned http://www.worldpokertour.com website and online store (http://store.worldpokertour.com). The WPT's growing fan base and poker players worldwide can now experience and purchase everything WPT-related with a couple of mouse clicks.

With its sharp new look, http://www.worldpokertour.com offers everything from upcoming TV schedules and satellite/live tournament information to complete tournament recaps and comprehensive WPT player career winnings. Fans can also expect to see exclusive professional poker player biographies of Doyle Brunson, Phil Hellmuth Jr., John Juanda, Jennifer Harmon, Antonio Esfandiari, Gus Hansen and many more.

"The re-launch of our appealing and user friendly worldpokertour.com site and store is only the first step in an aggressive overall internet strategy with more exciting new initiatives to be announced in the months to come," said Steve Lipscomb, CEO and founder of WPT Enterprises, Inc. "The internet is a key media for poker players worldwide and WPTE plans to leverage our brand and capture this market."

The new online store offers a wider range of products, with a new and improved process for ordering, fulfillment and customer service. Fans and poker players alike can purchase the World Poker Tour on DVD, WPT Collector Chip Sets, WPT Jewelry, WPT Video Games and much more. The WPT webstore is the best place for fans to find WPT branded products gathered together in one place!

"Today is a critical first step in the process of broadening our overall internet strategy," said David Wang, Vice President of WPT Enterprises' Internet Group. "Our internet goal is to bring together poker players worldwide by leveraging our brand and creating diverse offerings."

The WORLD POKER TOUR, which reinvented poker as a televised spectator sport, airs tournaments filmed at leading casinos from Paris to Las Vegas, and will begin the broadcast of its fourth season in March 2006. Airing every Wednesday night in the U.S. at 9 p.m. ET/PT on The Travel Channel, the WPT is the highest-rated series in the network's history. WORLD POKER TOUR is now seen in 120 countries and territories worldwide.

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LOS ANGELES, Nov. 7 /PRNewswire-FirstCall/ -- WPT Enterprises, Inc. (Nasdaq: WPTE - News) announced today that it will immediately begin to seek international distribution of its new televised poker franchise, the Professional Poker Tour ("PPT"). Unlike the company's seminal World Poker Tour franchise, only professional poker players can play in the PPT -- and must qualify to play, similar to the PGA.

"The intent has always been to syndicate the PPT internationally as soon as possible to help drive people in overseas markets to our international online gaming business," said Steven Lipscomb, President and CEO of WPTE. "Legal disputes over the domestic distribution of the PPT have made an international premiere likely for the show."

In September, ESPN offered a three-year deal with two one-year options to air the PPT. When WPTE offered that deal to the Travel Channel ("TRV") for its contractual right to match, TRV sent threatening letters to both ESPN and WPTE incorrectly asserting, among other things, that it already had a deal with WPTE to broadcast the PPT. The resulting dispute prompted ESPN to withdraw its offer.

Early last week, WPTE retained Stanton (Larry) Stein of Alschuler, Grossman, Stein & Kahan, LLP, renowned for his successful and efficient resolution of intellectual property disputes with integrated media companies. At its meeting on Thursday, November 3, the WPTE Board of Directors specifically directed WPTE management to withdraw from what had become protracted discussions with TRV over settlement of its dispute and the broadcast rights of the PPT on the Travel Channel.

"The Board believes that WPTE has a strong case and that WPTE's existing contract with TRV clearly affirms the Company's right to produce and sell non-WPT poker programming such as the PPT to other broadcasters," said Lyle Berman, Chairman of the Board of WPTE. "I have personally been involved in the attempts to resolve the matter with the Travel Channel, but the Board has decided that the stakes are too high and that, at this time, the Travel Channel is asking for too much for settlement to make sense. I have met with Mr. Stein and believe we are in good hands with the domestic matter while we pursue international syndication of the PPT shows."

Despite its dispute with Travel, WPTE remains committed to fulfilling its obligations in connection with Season IV of the World Poker Tour® series, including producing and delivering to its loyal WPT audience the very best in televised poker programming.

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LOS ANGELES, Nov. 8 /PRNewswire-FirstCall/ -- WPT Enterprises, Inc. (Nasdaq: WPTE - News) today announced results for the three months ended October 2, 2005. Business highlights for the quarter included strong product licensing revenues, continued expansion of the international distribution of our television show, and the commencement of operations of our online gaming site, www.WPTonline.com. (http://www.WPTonline.com.)

Revenues for the third quarter of 2005 were $2.1 million, compared to $3.0 million in the 2004 period, a 28.5% decrease. The net loss for the quarter was $1.6 million or a loss per fully diluted share of $0.08, compared to a net loss of $0.5 million, or $0.03 per fully diluted share, in the 2004 period.

"The third quarter represented continued progress for the World Poker Tour brand," said Steve Lipscomb, President and CEO of WPT Enterprises. "We began to deliver Season Four of our highly successful television show and we saw very strong product licensing revenues. Additionally we further expanded international distribution of our show and commenced operations of our online gaming business. As we look ahead to 2006, we are confident in our ability to continue to execute our strategic plan successfully."

Domestic television license revenues were $0.4 million in the third quarter of 2005, a decrease from $2.4 million in the third quarter of 2004. The decline was due to the delivery of only one Season Four episode during the third quarter of 2005 compared to six episodes of Season Two delivered during the comparable prior year period. Product licensing revenues were $0.9 million in the third quarter of 2005 compared to $0.2 million in the third quarter of 2004 due to an increase in the number of licensees of the World Poker Tour brand and continued growth from our existing licensees. International television licensing revenues increased to $0.4 million in the third quarter of 2005 from $0.3 million in the third quarter of 2004. The increase was attributable to additional distribution agreements in place for 2005.

Cost of revenues decreased to $0.6 million in the third quarter of 2005 from $1.9 million in the third quarter of 2004 primarily due to costs associated with the delivery of fewer episodes of the World Poker Tour television show. Production costs of approximately $0.2 million attributable to the premiere season of the Professional Poker Tour(TM) (PPT) were expensed during the quarter in accordance with WPTE's policy to expense production costs if a firm commitment or an executed distribution agreement is not in place. Additionally, cost of revenues in the third quarter of 2005 included approximately $0.2 million of non-cash compensation benefits related to consultant stock option awards compared to $0.3 million of non-cash compensation expense related to consultant stock options in the comparable prior year period.

Overall gross margins were 73.6% in the third quarter of 2005 compared to 34.7% in the third quarter of 2004. The higher gross margins in the third quarter of 2005 primarily result from the reduction of delivery of television episodes in the quarter, and increased product licensing revenues. Selling and administrative expenses increased to $3.3 million in the third quarter of 2005 compared to $1.5 million in the third quarter of 2004. This increase is primarily due to marketing and operating costs associated with the Company's new internet gaming venture, WPTonline.com, as well as additional headcount costs, product licensing commissions, and legal and independent accountants' fees incurred during the 2005 period associated with business development, increased product licensing revenues and, growth and regulatory compliance costs related to being a reporting public company.

At October 2, 2005, WPTE had no debt, and cash, cash equivalents and short-term investments totaling $30.5 million.

Revenues in the fourth quarter of 2005 are forecast to range from $4.5 - $5.0 million. This is attributable to an expected decrease in WPT episodes delivered from eight in the fourth quarter of 2004 to four in the fourth quarter of 2005. The remaining 16 episodes of Season Four are expected to be delivered during the first and second quarters of 2006. Additionally, WPTE does not expect to realize revenues associated with the PPT in the fourth quarter of 2005 as it does not expect to have a distribution agreement in place. The Company also expects to continue to increase its sales and marketing expenses related to WPTonline.com in the fourth quarter of 2005.