SOURCE: Signature Devices, Inc.

Signature Devices, Inc.

November 11, 2010 10:42 ET

Signature Devices, Inc. Update Regarding Graffiti Entertainment Spin-Out Transaction

REDWOOD CITY, CA--(Marketwire - November 11, 2010) - Signature Devices, Inc. (PINKSHEETS: SDVI) ("SDVI") would like to announce the following updates regarding the previously announced spin-out of Graffiti Entertainment, Inc. ("Graffiti") pursuant to the plan to list Graffiti Entertainment on the Frankfurt Exchange (the "Exchange").

Graffiti's previously announced spinout and stock dividend to shareholders of SDVI. The record date of the dividend for the shares was on October 15th, with an Ex-dividend date of October 18th. Graffiti is currently working with the DTC and the transfer agent to issue the Graffiti shares to the brokers for deposit into SDVI shareholders accounts electronically. As part of the process the reconciliation of the SDVI share count on deposit at the DTC and the share count at the transfer agent had a discrepancy of 10,350,000 shares to many. 350,000 shares of that amount has been reconciled, but there was an additional 10,000,000 shares accidently issued by the transfer agent in 2008. To try and resolve the issue the CEO has offered to forego 10,000,000 share dividend until the issue can be straightened out. Graffiti has been working with and is currently waiting on the DTC to issue the brokers list of shares and distribution instructions. Once that list is issued, Graffiti issues the shares to the brokers who then deposit the shares into the shareholders account.

Graffiti has recently announced a EUR 360 Million equity line of credit from Equity Partners Fund SPC. Graffiti also received a subscription agreement for $7 million valuing the Graffiti shares at $3.66 per share. SDVI has agreed to sell Graffiti Entertainment, Inc., most of the current assets of SDVI for a $20 Million note due and payable 6 months after Graffiti lists on the Frankfurt exchange. In addition SDVI will receive a 10% royalty on video games sales from Graffiti and there will be a stock swap of 30% of SDVI in exchange for 3,000,000 shares of Graffiti as part of the deal. The SDVI shares will be restricted and can't be traded for a period 1 year.

SDVI will maintain some IP including Range Box and other non-gaming IP in its portfolio. SDVI plans on becoming a holding company and building its IP and business in other areas exclusive of gaming.

The CEO plans to broadcast a video conference on answering shareholders questions regarding SDVI.

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 recently spun out Graffiti Entertainment, Inc. ( into a separate company.

Graffiti Entertainment, Inc. is a Media Conglomerate consisting of companies and ventures in the Film, music and video game business.

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.