SOURCE: Signature Devices, Inc.

August 20, 2007 16:01 ET

Signature Devices, Inc. Retires 277 Million Shares of Common Stock

Retirement of Stock Drastically Reduces Number of Outstanding Shares

REDWOOD CITY, CA--(Marketwire - August 20, 2007) - Signature Devices, Inc. (PINKSHEETS: SDVI), a company that creates 3D Image generation technology including developing and publishing video games, announced today that 277 million shares of outstanding common stock will be retired in favor of preferred convertible stock. The common stock will be retired and will subsequently reduce the total number of outstanding common shares.

The retirement of 243,658,000 shares of common stock will primarily come from the common stock held by the CEO of Signature Devices, Inc. with the remaining 33,342,000 shares of common stock coming from others. Management believes that retiring this common stock will have a positive effect by increasing non-affiliate shareholder value by decreasing the number of common shares outstanding.

Kenneth Hurley, CEO of Signature Devices, Inc., stated, "It has always been our intention to provide the sort of capital structure that will best help us deliver shareholder value. As such, we wanted to reduce the common outstanding shares on the market. We are also in the process of PCOAB audits in preparation to becoming a fully reporting company and having our company's stock upgraded. This, coupled with our efforts to become more profitable so that our P/E ratios can support higher stock levels, is part of our plan to build shareholder confidence and value in the company."

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

Based in Redwood City, Calif., Signature Devices, Inc. (PINKSHEETS: SDVI) www.signaturedevices.com creates, develops and manufactures advanced information technology, including computer systems, software and electronics products. One of the company's premiere technologies includes a blend of hardware and software for Image generation technology used in video games and simulations. Its wholly owned subsidiary Graffiti Entertainment, LLC (www.graffitientertainment.com) is a full service developer and publisher of interactive entertainment software for advanced entertainment consoles. Its focus is on creating, developing, and publishing trend setting titles with mass-market appeal.

Forward-Looking Statements:

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.

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