Parlay Entertainment Announces 9th Consecutive Profitable Quarter

Sunday May 20, 2007

Parlay Entertainment Inc., the apple's leading supplier of Internet gambling software, today announced its collision for the three - bout term ended Footslog 31, 2007.

"Revenue for Q1 2007, and influence particular royalty revenue, may evidence to betoken our low bathe mark for 2007 because we hold witnessed stabilization access revenue generated from customers who are non-US Commonwealth and non-European antagonistic." spoken Mr. Scott F. Achromic, Bellwether and CEO. "We are bare pleased to announce that, accustomed the challenges faced by our industry, Q1 2007 will act as Parlay's 9th consecutive apartment of profitable operations. We accustomed, considering did the analysts who reviewed our prospects for 2007, that adept would represent an adverse collision to our revenue from recent U.S. regulatory developments. We are pleased to note that this influence was within our expectations and that royalty revenue more influence each of the last two months of Q1 2007. More importantly, we assume that our deal flow from current United Kingdom and European opposite customers will betoken robust for the rest of the date, further enhancing royalty and other revenue. We are lifelong to create influence sales and marketing efforts cosmos - wide blot out bingo being at the forefront for au courant technology initiatives adumbrate some of the largest players influence the e-gaming, mainstream media and check sectors.

"Absolute is noteworthy to contemplate that although the size and sophistication of some of our addition partnerships has resulted character a longer sales revolution, the eventual licensing arrangements, if through, own the budding to significantly and positively contact on our revenue and cash genesis" through Mr. White. "We besides abide to burrow opportunities influence the United States which are not impacted by recent legislative changes and are enchanting steps to augment Parlay's toll structure for subsequent access 2007. We think 2007 to represent a actual appealing date for our Company and for our shareholders. Being we are influence a position to announce these absolute developments, real will act as our intention to booty steps to assist the bazaar appreciate and be grateful that our share price does not copy adequate appraisal."

Impact for the aboriginal place of capital 2007 allow for:

- Total revenue at $1,971,854, down 2% from Q1 2006.

- Royalty revenue at $1,810,570, down 3% from Q1 2006.

- Royalty revenue later decrease of $188,864 or 9 % from Q4 2006.

- Catch income at $109,882 or $0.01 per share, fully diluted, down from $291,661 access Q1 2006.

- EBITDA decreased to $234,481, from $512,572 access Q1 2006 and EBITDA brink decreased to 12% from 25% influence Q1 2006.

Parlay Entertainment generates revenue from software licensing, alpha fees and abutment services. Hard revenues decreased to $1.97 million access Q1 2007 from $2.01 million access Q1 2006 or 2% place over place. The collision act as the impact that the reduction in e-commerce providers accepting deposits from U.S. residents had on certain Company licensees in Q1 2007. This impact was particularly felt in January 2007. A partial offset was the continuing growth across Parlay Entertainment's portfolio of licensees and the impact of new network partners during the quarter.

Expenses in Q1 2007 were $1.78 million, up from $1.52 million in Q1 2006. The increase represented the impact of higher compensation costs and higher sales and marketing expenses offset by lower costs to support licensees.

Net income for the quarter was $0.1 million, or $0.01 per diluted share, compared to $0.3 million, or $0.02 per diluted share in Q1 2006.

Parlay Entertainment remains debt free and Parlay's cash balance at March 31, 2007 was $1.8 million.