SOURCE: Red Mile Entertainment

February 22, 2007 16:00 ET

Red Mile Entertainment Sees Strong Revenue Growth in Fiscal 2008

SAUSALITO, CA -- (MARKET WIRE) -- February 22, 2007 -- Red Mile Entertainment, a worldwide developer and publisher of interactive entertainment software, today provided financial guidance for the balance of fiscal 2007 and for fiscal year 2008. The Company expects fiscal 2008 revenues will increase sharply to the range of $18 million to $22 million. Red Mile expects to report revenues of $1 million to $1.2 million for fiscal 2007 ending March 31, 2007, as it transitions into an emerging publisher.

"Red Mile is poised for very significant revenue growth in fiscal 2008 based on the expected release of a strong slate of titles led by the anticipated release of 'Jackass: The Game,'" stated Chester Aldridge, Chairman and CEO of Red Mile. "Over the past twelve months we have substantially built out our properties, management team, developer and distribution network and our overall IP strategy. We are now focused on execution and capitalizing on the enormous opportunities available to us within the fast-growing interactive entertainment software sector."

Founded in August 2004, Red Mile has published a number of innovative titles. In 2005, the Company successfully launched its first franchise game, "Heroes of the Pacific," for multiple platforms including the PlayStation®2 computer entertainment system, Xbox® video game system from Microsoft and the PC. The popular game is also being developed for the PSP® portable entertainment system, and a sequel to the game is being developed for the next generation of consoles and PC platforms. Red Mile's most highly anticipated title, "Jackass: The Game," which is based on the extremely successful MTV series, is expected to be published in September 2007. A publicly reporting company, Red Mile is also working towards the listing of its common shares for trading on the OTC Bulletin Board.

About Red Mile Entertainment

Red Mile Entertainment, Inc. is a worldwide developer and publisher of interactive entertainment software. Headquartered in Sausalito, California, the company creates, incubates and licenses premier intellectual properties and develops products for console video game systems, personal computers and other interactive entertainment platforms. http://www.redmileentertainment.com/.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," or variations of such words are intended to identify such forward-looking statements. All statements in this news release regarding the Company's expectations for its revenues, release and publication of titles and the future outlook related to the Company are forward-looking statements. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. All forward-looking statements made in this press release are made as of the date hereof, and the Company assumes no obligation to update the forward-looking statements included in this news release whether as a result of new information, future events, or otherwise. Please refer to the Company's Form 10-K and other filings with the SEC for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov.

©Red Mile Entertainment, Inc. All rights reserved. Red Mile Entertainment and the Red Mile Entertainment logo are trademarks of Red Mile Entertainment, Inc.

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