Increased demand from investors seeking alternatives to equity and cash-based products drove prize bond sales up by almost 200 per cent to €50 million, the scheme's operating company said yesterday.

Prize Bond Company Ltd said in its interim statement that net sales for the seven months to the end of July were €50 million.

Net sales for the same period in 2002 were €16.9 million.

The increases in the number and value of prizes were not as dramatic. Since the beginning of the year, the company has paid out €5 million in cash prizes, up 19.3 per cent on the same period in 2002.

There were 48,800 prize winners, a 13 per cent increase on 2002.

Prize bond company chairman, Mr Michael O'Keeffe, said the State's guarantee of the original investment, combined with the potential to win tax-free prizes of up to €150,000, were attracting new investors to the scheme.