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160% Revenue Growth; Gross Margins Improve to 76%

MatchNet plc (MHJG: Frankfurt Stock Exchange - Neuer Markt), one of the largest global online dating service providers, today released first quarter results for the period ended March 31, 2002.

Revenues for the first quarter 2002 were $4,215,663 compared to revenues of $1,624,022 for the first quarter 2001, an increase of 160%. The increase in revenues is attributed to continued growth in overall membership; technological upgrades to the Company's websites designed to increase conversion rates of members to subscribers; and critical mass achieved at gay11.com that contributed to significant increase in revenue. Revenue from recurring membership subscriptions accounted for 95% of total revenue in first quarter 2002. EBITDA* increased to $1,093,167, from an EBITDA loss of $1,127,111 in the year-ago period. Operating expenses decreased xx% to $xx, from $xx in the first quarter 2001. Earnings per share were $0.05 in first quarter 2001, versus a loss of $0.12 in the year-ago period. Gross margins increased 12% from the year ago period to 76%. MatchNet ends the quarter with a strong balance sheet containing no debt, long-term liabilities, or interest expense.

In addition, the Company announced that its network of online dating sites, available in four languages, now features more than five million members with profiles from 236 countries. In 2001, the Company's membership increased 297% overall, including increases of 300% in its' main service, AmericanSingles, 74% in JDate, and 199% in its combined German membership.

“Investors today are seeking companies with few debts, ample assets and consistent earnings growth. By those measures, MatchNet makes the grade,” stated Joe Shapira, CEO and co-founder, MatchNet plc.

1st Quarter 2002 Highlights Include:

• Natalie Papagni joins MatchNet ad CFO & Director of Operations, bringing over 12 years experience in financial management, accounting, operations, and organizational system-integration consulting experience.


• MatchNet plc completes acquisition of FaceLink.com, driving membership and revenue increases, doubling traffic to gay11.


• AltaVista names MatchNet exclusive provider of online Personals for popular ‘Web Resources' on AltaVista.com.


• Launch of new products & technology including new & improved Chat Room functionality to increase user experience on MatchNet's websites and improved financial technology to ensure seamless transaction processing and enhance transaction approval rates.

MatchNet is one of the largest providers of global online dating and relationship services. The MatchNet network includes AmericanSingles.com, FaceLink.com, MatchNet.de, MatchNet.co.uk, and MatchNet.com.au. In addition, the Company operates JDate.com & JDate.co.il, the dominant Jewish dating services worldwide and gay11.com, one of the world's largest online dating services for relationship-minded gay men and women. MatchNet's network of websites enjoys a combined membership of over six million registered members worldwide. MatchNet earns its revenue from recurring membership subscription fees and special events.

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USA

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