Gross sales by the Prize Bond Company rose 7 per cent last year, to €74.7 million (£58.8 million). The Prize Bond fund was €332.3 million at the end of 2001, up 12 per cent on 2000.

Tax free prizes of €8.4 million were awarded during the year, up 9.5 per cent.

The number of prizes was up 100 per cent, to 88,202.

The company said the increase in sales was driven mainly by changes made in November 2000, when a new brand identity for prize bonds was introduced and the structure of prize distribution altered to double the number of weekly prizes.

Mr Michael O'Keeffe, chairman, said he was "very pleased with the performance of prize bonds in 2001, which builds on what we have achieved over the past five years.

"The rise in the average purchase value illustrates the desire of many investors to place part of their savings in prize bonds, while the increasing sales demonstrate the enduring attractiveness of prize bonds, especially in the current low interest rate environment."

Over the past five years, there had been significant growth in sales, the prize fund and the number of prizes, Mr O'Keeffe said.

Between 1996 and 2001, sales have increased by 101 per cent to €74.7 million.