SOURCE: Signature Devices, Inc.

August 07, 2008 08:31 ET

Signature Devices Updates Shareholders on Status of Company

REDWOOD CITY, CA--(Marketwire - August 7, 2008) - Signature Devices, Inc. (PINKSHEETS: SDVI) is issuing this update on the status of the Company. This update is directly from the CEO Kenneth L. Hurley and is a disclosure and update for the benefit of the shareholders.

The "Mazes of Fate" DS product initial purchase orders are around 15,000 units with the bulk of the orders coming from 2 major retailers. The game was planned to ship on August 12th, 2008, but as is typical for this time of the year the manufacturer who we are licensed with dictates the date the cartridges will be ready. They have given us a date of August 22nd. The product will then be shipped from Japan via Air to the packager in Minnesota and this should take about another 7-10 days for shipping and packaging. We are anticipating the product to hit retail shelves around September 1st. The date that it hits retail shelves does not affect our bottom line, as we are able to invoice on shipment to the distributor.

The company has reduced non-essential staff recently to cut expenses by 2/3. This will help the company become more profitable during this holiday season. We have maintained personnel that are essential to our business as a publisher.

We recently filed our Form 10-12g to become a fully reporting company. Once the comment period from the SEC is finalized, which usually is around 60 days, we will work with our Market Maker to uplist the stock on the OTCBB. After filing our Form 10, we have fulfilled our obligations of disclosure and have been upgraded to the "Current Information" icon on www.pinksheets.com. Our financials were included in the Form 10 and shows around 8.7 million in stock based compensation expenses. These are expenses that are related to the sale or grants to employees and are not an actual cash outlay for the company. It is also our belief that until the OTCBB uplisting is completed that the company cannot raise any more money via stock offerings. Before filing the Form 10 we have finalized all outstanding offerings and private placements.

Phatyaffle (www.phatyaffle.com), our online web portal, has grown to over 750 users in a very short period of time with a blend of end users and small number of developers that want to use our Elemental Engine II. We did a small test marketing campaign for the site and had good success with gaining about 500 users from this campaign. We have another campaign in the works that should drive a higher number of users to the website. These users are valid users and the company does not initiate the sign ups for the individuals.

"We're very happy with the direction of the business," stated Kenneth Hurley, CEO of Signature Devices, Inc. and Graffiti Entertainment, Inc. "The Holiday Season is traditionally a boom for video game publishers and we are expecting great sales through the end of the year."

About Signature Devices, Inc. and Graffiti Entertainment, Inc:

Based in Redwood City, Calif., Signature Devices, Inc. creates, develops and manufactures advanced information technology, including computer systems, software and electronics products. One of the Company's premier technologies includes a blend of hardware and software for image generation technology used in video games and simulations. Signature Devices also owns Graffiti Entertainment, Inc. (www.GraffitiEntertainment.com), a publisher of interactive entertainment software for advanced entertainment consoles.

The information in this press release includes certain "forward-looking" statements within the meaning of the Safe Harbor provisions of Federal Securities Laws. Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this release, and the Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date of this release except as required by law.