Parlay Entertainment Inc.
TSX VENTURE : PEI

Parlay Entertainment Inc.

February 21, 2008 10:12 ET

Parlay Entertainment Inc. Provides Update on Potential Transactions

OAKVILLE, ONTARIO--(Marketwire - Feb. 21, 2008) -

All amounts in Canadian Dollars

Parlay Entertainment Inc. (TSX VENTURE:PEI) ("Parlay" or the "Company"), announced that it has received an additional expression of interest from a party interested in conducting due diligence on the Company.

Interested parties are at various stages of their due diligence. The Company has advised the interested parties that it intends to close due diligence mid-week next week. The Company will entertain binding offers to purchase all of the issued and outstanding shares of the Company by the end of February 2008.

The Company also announces that it has received written notice from PEIC Acquisition Corp ("PEIC") terminating the letter of intent dated January 11, 2008 related to PEIC's proposal to acquire all of the outstanding common shares of the Company by way of a statutory plan of arrangement for cash consideration of $0.95 per share. During the course of negotiating a definitive agreement, PEIC communicated certain concerns about the timing and certain aspects of the transaction which the Company was unable or unwilling to resolve. Accordingly, PEIC has withdrawn from the bidding process. In accordance with the terms of the letter of intent, Parlay agreed to pay the reasonable out of pocket legal, tax and accounting costs and expenses of the PEIC (and its owner) of up to $500,000 Cdn.

There can be no assurance that any agreement will be entered into as a result of the negotiations around any expression of interest received by the Company, nor can there be any assurance that any proposed transaction will be completed or approved by the shareholders of Parlay.

About Parlay Entertainment

Parlay Entertainment Inc. is the world's leading developer and licensor of Internet bingo software. As the inventor and patent holder of Internet bingo(1), Parlay is the first company in the world to develop and deploy a commercial Internet bingo product. Parlay bingo is available in both 75-number and 90-number versions and is complemented by a full suite of lottery and casino games. Our multi-player, multi-platform technology is used to power more online bingo sites than any other software provider in the world. Some of the world's best known brands use Parlay Bingo solutions, including Virgin, Yahoo!, MSN and Littlewoods Gaming. Parlay is headquartered in Oakville, Canada with offices in Bridgetown, Barbados, and Valletta, Malta.

For more information on Parlay solutions and services, please visit our website at www.parlaygroup.com.

This document may contain statements about expected future events of Parlay Entertainment Inc. that are forward-looking including the proposed transaction. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.

(1) United States Patent No. 6,585,590 "Method and system for operating a bingo game on the internet", with other Patent applications pending in other countries.

The TSX Venture Exchange does not accept any responsibility for the adequacy or accuracy of this release.

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