SOURCE: Press Release

(Oakville, Ontario, Canada) — Parlay Entertainment Inc. (TSX VENTURE: PEI.V), the world's leading supplier of Internet bingo software, today announced its results for the three and nine-month periods ended September 30, 2007.

"With new licensing arrangements now generating revenue and with other significant arrangements on the horizon, we expect royalty revenue to expand over the next quarter and beyond" said Scott White, President and Chief Executive Officer. "Multinational and brand-name companies continue to explore the Internet bingo vertical and we look forward to announcing new licensing arrangements with our growing complement of U.K. and European focused customers."

Highlights for the third quarter of fiscal 2007 include:

Successful launch of Paddy Power's bingo offering
Successful installation of Bet24's bingo offering
Parlay software certification under the auspices of the Isle of Man
Grant of Software Supply License by the U.K. Gambling Commission
Canada Revenue Agency acceptance of SR&ED claims for 2004 and 2005

Results for the third quarter of fiscal 2007 include:

Total revenue at $2,001,531, down 24% from Q3 2006.
Royalty revenue at $1,788,223, down 8% from Q3 2006.
Net income at $173,492, or $0.01 per share, fully diluted, down from $501,931 in Q3 2006.
EBITDA(1) decreased to $271,538, from $865,023 in Q3 2006 and EBITDA(1) margin decreased to 14% from 33% in Q3 2006.

Results for the first three quarters of fiscal 2007 include:

Total revenue at $5,990,758, down 13% from the first three quarters of 2006.
Royalty revenue at $5,438,569, down 6% from the first three quarters of 2006.
Net income at $296,242, or $0.02 per share, fully diluted, down from $1,206,255 in the first three quarters of 2006.
EBITDA(1) decreased to $583,810, from $2,082,345 in the first three quarters of 2006 and EBITDA(1) margin decreased to 10% from 30% in the first three quarters of 2006.

Parlay generates revenue from software licensing, installation fees and support services.

Consolidated revenues decreased to $2.0 million in Q3 2007 from $2.6 million in Q2 2006 or 24% quarter over quarter.

The decrease represents the absence in Q3 2007 of a one-off revenue enhancement in Q3 2006 in the amount of $0.5 million and the detrimental impact on certain Company licensees from changes in the business model of certain e-commerce providers.

A partial offset was the continuing growth across Parlay's portfolio of licensees and the impact of new network partners during the quarter.

Expenses in Q3 2007 were $1.8 million, unchanged from $1.8 million in Q3 2006. Although total expenses were unchanged in Q3 2007, the Company's was able to recognize tax incentives for research activities which were offset by higher compensation costs, including the impact of foreign exchange fluctuations, and the absence of certain non-recurring costs from Q3 2006.

Net income for the quarter was $0.2 million, or $0.01 per diluted share, compared to $0.5 million, or $0.03 per diluted share in Q3 2006.

Consolidated revenues decreased to $6.0 million in the first three quarters of 2007 from $6.9 million in the first three quarters of 2006 or a 13% decrease nine-month period over nine-month period.

The decrease represents the absence in the nine-month period in 2007 of a one-off revenue enhancement in the amount of $0.5 million in the nine-month period in 2006 together with the detrimental impact on certain Company licensees from changes in the business model of certain e-commerce providers.

A partial offset was the continuing growth across Parlay's portfolio of licensees and the impact of new network partners during the first three quarters of 2007.

Expenses in the first three quarters of 2007 were $5.5 million, up from $4.9 million in the first three quarters of 2006.

The increase represented the impact of higher compensation costs, including the impact of adverse foreign exchange effects, offset by the Company's ability to recognize tax incentives for research activities and the absence of certain non-recurring costs from the first three quarters of 2006.

Net income for the first three quarters of 2007 was $0.3 million, or $0.02 per diluted share, compared to $1.2 million, or $0.08 per diluted share in the first three quarters of 2006.

Parlay remains debt free and Parlay's cash balance at September 30, 2007 was $1.8 million.