SOURCE: Playlogic Entertainment, Inc.

April 21, 2006 12:13 ET

Playlogic Entertainment, Inc. Announces Delay in Filing of 2005 Annual Report on Form 10-KSB

AMSTERDAM, THE NETHERLANDS -- (MARKET WIRE) -- April 21, 2006 -- Playlogic Entertainment, Inc. (OTC BB: PLGC) today announced that it was unable to file its Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (the "2005 10-KSB") with the United States Securities and Exchange Commission ("SEC") by the extension deadline of April 17, 2006 (the "Extension Deadline").

The Company is still in the process of completing its financial statements for the year ended December 31, 2005. In its Form 12b-25 filed with the SEC on March 31, 2005, the Company disclosed that it was seeking a filing extension and would delay its filing of its 2005 10-KSB until the Extension Deadline.

The Company is working diligently to analyse and accurately report its financial performance, but because of the nature and complexity of the reverse merger accounting and the efforts associated with coordinating accounting firms based in the Netherlands and the US, the Company was unable to complete its financial statements for the year ended December 31, 2005 and file its 2005 10-KSB on or before the Extension Deadline and, as of the date hereof, the Company cannot accurately make a reasonable estimate of the quantitative operating/results of the Company after the merger. At this time, although the Company is working as quickly as possible to finalize its 2005 financial statements, the Company is unable to predict when it will be in a position to file the 2005 10-KSB. There are no outstanding material disagreements between the Company and its auditor S. W. Hatfield, CPA, Dallas, Texas.

As a result of the delay in the filing of the 2005 10-KSB, the Company will postpone its Annual Meeting of Stockholders, currently scheduled to be held in New York on May 3, 2006. The Company expects to hold its Annual Meeting of Stockholders as soon as practicable following the filing of the 2005 10-KSB.

On June 30, 2005, Donar Enterprises, Inc., the Company's predecessor ("Donar"), Playlogic International N.V., a corporation formed under the laws of The Netherlands ("Playlogic"), and the shareholders of Playlogic ("Playlogic Shareholders") entered into a Securities Exchange Agreement. Pursuant to this agreement, Playlogic Shareholders exchanged 100% of the issued and outstanding ordinary shares and preferred shares of Playlogic for an aggregate 21,836,924 shares of Donar's common stock. As a result of this transaction, Playlogic became Donar's wholly owned subsidiary, which now represents all of Donar's commercial operations, and Playlogic Shareholders control approximately 91% of the outstanding common stock of Donar, post-transaction. On August 1, 2005, Donar merged with a wholly owned subsidiary named Playlogic Entertainment, Inc., and in connection with such merger, Donar changed its name to Playlogic Entertainment, Inc.

The abovementioned share exchange on June 30, 2005 effected a change in control of the Company and was accounted for as a "reverse acquisition" whereby Playlogic is the accounting acquirer for financial statements purposes. Accordingly, for all periods subsequent to June 30, 2005, the financial statements of the Company reflect the historical financial statements of Playlogic since its inception and the results of operations of the Company subsequent to June 30, 2005. The financial statements to be included in the 2005 10-KSB for the period ended December 31, 2005 will reflect the operations of Playlogic.

About Playlogic:

Playlogic Entertainment, Inc. is an independent publisher of entertainment software for consoles, PCs, handhelds, mobile devices, and other digital media. Playlogic, established in early 2002, publishes game concepts across various genres. The company distributes its products worldwide through all available channels, online and offline.

Playlogic, who currently has approximately 75 employees, is listed on the OTC BB under the symbol "PLGC" and is headquartered in New York and Amsterdam. Its internal studio is based in Breda (The Netherlands).

Playlogic's portfolio includes games that are being developed by several teams at Playlogic Game Factory, Playlogic's in-house development studio based in Breda, as well as games developed by a number of studios throughout the world. Currently, 11 games on 16 platforms are under development, including "Age of Pirates: Caribbean Tales," "Age of Pirates: Captain Blood," "Ancient Wars: Sparta," "Infernal," "Xyanide Resurrection" and "PRISM - Threat Level: Red," which will be published this year. "World Racing 2," "Knights of the Temple 2" and "Gene Troopers" have been released recently throughout Europe.

Playlogic is always looking for additional, high-quality games and acquires products that can be exploited in the complete value chain of digital entertainment products from games at retail to mobile games and digital TV.

FORWARD-LOOKING STATEMENTS

This release contains statements about PLAYLOGIC's future expectations, performance, plans, and prospects, as well as assumptions about future events. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including without limitation, business and economic conditions and trends; fluctuations in operating results; reduced customer demand relative to expectations; competitive factors; and other risk factors listed from time to time in the company's SEC reports. Actual results may differ materially from our expectations as the result of these and other important factors relating to PLAYLOGIC'S business and product development efforts, which are further described in filings with the Securities and Exchange Commission. These filings can be obtained from the SEC's website located at www.sec.gov. Any forward-looking statements are based on information available to PLAYLOGIC on the date of this release, and PLAYLOGIC assumes no obligation to update such statements.

Contact Information

  • FOR MORE INFORMATION

    Playlogic Entertainment, Inc.
    Esther Berger
    Corporate Communication & IR Manager
    T: +31 20 676 03 04
    E: Email Contact

    Robert Ferris
    RF|Binder Partners
    950 Third Avenue, 7th Floor
    New York, NY 10022
    Email Contact
    Tel: +1 212 994 7505

    For further information about Playlogic please visit www.playlogicgames.com