Parlay Entertainment Provides Update on Potential Transactions

Parlay Entertainment, announced that it has received an additional expression of interest from a party interested in conducting due diligence on the Company.

Interested parties are at various stages of their due diligence. Parlay Entertainment has advised the interested parties that it intends to close due diligence mid-week next week. Parlay Entertainment will entertain binding offers to purchase all of the issued and outstanding shares of the Company by the end of February 2008.

Parlay Entertainment also announces that it has received written notice from PEIC Acquisition Corp terminating the letter of intent dated January 11, 2008 related to PEIC's proposal to acquire all of the outstanding common shares of the Company by way of a statutory plan of arrangement for cash consideration of $0.95 per share. During the course of negotiating a definitive agreement, PEIC communicated certain concerns about the timing and certain aspects of the transaction which Parlay Entertainment was unable or unwilling to resolve. Accordingly, PEIC has withdrawn from the bidding process. In accordance with the terms of the letter of intent, Parlay agreed to pay the reasonable out of pocket legal, tax and accounting costs and expenses of the PEIC of up to $500,000 Cdn.

There can be no assurance that any agreement will be entered into as a result of the negotiations around any expression of interest received by Parlay Entertainment, nor can there be any assurance that any proposed transaction will be completed or approved by the shareholders of Parlay.