Parlay Entertainment Medieninfos 2005

[Cabo]

Parlay Entertainment Inc. Completes Relocation of its Corporate Domicile
Amalgamation of dot com Entertainment Group, Inc. subsidiaries streamlines corporate structure

OAKVILLE, Ont. — January 12, 2005 — Parlay Entertainment Inc. (Pink Sheets: DCEG), formerly dot com Entertainment Group, Inc. ("DCEG"), the world's leading supplier of Internet Bingo solutions, is pleased to announce that it has successfully completed the relocation of its corporate domicile from the State of Florida to the Province of Ontario.

The result of this two-step corporate action results in the Canadianization of the Company. On October 18, 2004, DCEG moved into Ontario through the State of Nevada and then amalgamated, on November 30, 2004, with its various Canadian subsidiaries to become Parlay Entertainment Inc. Shareholders of DCEG became shareholders of Parlay by operation of law.

As was outlined in the Plans of Conversion and Merger, which were forwarded to shareholders in October 2004, rights of dissent were available under Florida and Nevada law. No shareholder elected to exercise any right to dissent.

"We believe that the relocation of our Company from the United States to Canada, and a streamlined and more efficient corporate structure, will benefit all of our shareholders, through more attractive valuations and shareholder liquidity," said Scott White, Parlay's President & CEO. "Reporting requirements from new regulations such as Sarbanes-Oxley create a burden for small businesses in the United States, disproportionate to their size. A Canadian domicile, on the other hand, will allow Parlay to focus less on overhead, and more on driving the growth of the business, much of which will be in international markets outside of the United States."

The shares of Parlay Entertainment Inc. are presently quoted on the United States Pink Sheets under the symbol "DCEG". Effective in mid-January, a new share symbol more representative of Parlay's new corporate name will replace the present symbol. We will update our stakeholders as soon as the new symbol is assigned to the Company by the NASDAQ. The Company has also recently applied to list its shares on the TSX Venture Exchange.

As part of the Canadianization process, effective on December 31, 2004, Parlay's stock transfer agent changed to Equity Transfer Services Inc. Shareholders in possession of dot com Entertainment Group, Inc. share certificates may exchange them for Parlay Entertainment Inc. share certificates by presenting certificates to Equity Transfer Services Inc., at their offices located at Suite 420, Richmond Adelaide Centre, 120 Adelaide Street West, Toronto, Ontario, M5H 4C3 (416) 361-0930.

In the coming weeks and months, Parlay intends to provide stakeholders with additional disclosure on a variety of corporate actions. Notification of these disclosures will be made on the Company's website at www.parlaygroup.com.

For more information, please contact Scott White, President & CEO at (905) 337-6505 or David Callander, Corporate Secretary & CFO at (905) 337-6516.

[Cabo]

Parlay Announces Participation at ICE 2005
Intensifies focus on UK and European markets

OAKVILLE, Ont. — January 18, 2005 — Parlay Entertainment Inc. (Pink Sheets: PRYNF), the world's leading supplier of Internet Bingo solutions, is pleased to announce its participation at the annual International Casino Exhibition (ICE 2005) in London's Earls Court Exhibition Centre from January 25 to 27, 2005.

"Parlay is delighted to be participating at ICE 2005," said Scott White, President & CEO, citing that continued positive regulatory trends in the UK and other jurisdictions worldwide will make this show an upbeat and exciting event.

"Parlay has completed its recent corporate streamlining to provide an intensified focus on the UK and European marketplace," said Mr. White. "We are expanding our commitment to this important market and will continue to grow our direct participation, as well as our network of partners, alliances and customers. From our perspective, this market is on the threshold of explosive growth, and Parlay will be at the forefront with our industry leading solutions."

Parlay is also announcing the assignment of a new stock symbol by NASDAQ, more representative of Parlay's new corporate name. The present DCEG symbol will be replaced by the new symbol, PRYNF, effective on January 18, 2005.

[Cabo]

BingoMania Voted 2004 Online Bingo Site of the Year
Parlay Entertainment licensees dominate WhichBingo's prestigious Site of the Year awards

OAKVILLE, Ont. — January 19, 2005 — Parlay Entertainment Inc. (Pink Sheets: PRYNF), the world's leading supplier of Internet Bingo solutions, is pleased to announce that BingoMania, a licensee of Parlay Bingo software since 2001, has received WhichBingo's prestigious Online Bingo Site of the Year award for 2004. This award is highly regarded throughout the industry because it is chosen by players themselves.

In addition to the top prize, Parlay licensees dominated this year's awards, landing eight additional spots in the Top 20 Sites of the Year category and seven spots in the Top 20 New Sites of the Year category. The sheer number of top sites that are powered by Parlay Bingo solutions once again confirms the leadership role that Parlay continues to play as the online bingo sector expands dramatically.

"We are very thrilled to have won this award, and we are looking forward to an even more successful year in 2005," said Stuart Gordon, President of BingoMania. "We are grateful to all our wonderful players who have made BingoMania.com a success and are humbled that they have chosen us as the #1 Internet Bingo site in 2004." BingoMania awards $5,000,000 in prizes each month to bingo winners and offers both 75-number and 90-number Bingo games.



"We would also like to recognize the role that Parlay Entertainment has played in our ongoing success," continued Mr. Gordon. "Parlay has been a solid, reliable partner whose proven Internet Bingo software solution has been developed with an emphasis on user experience and technical architecture."

"Parlay is proud to be associated with an industry leader such as BingoMania.com, whose strategy and solid management has propelled it into the forefront of this market," said Scott White, President & CEO of Parlay Entertainment Inc. "BingoMania's dedication to customer service and marketing is well established, and the combined efforts of our two companies will keep us both at the top of our respective markets."

About BingoMania

Established in 1996 and known for excellent customer service, BingoMania.com is widely regarded as the number one Bingo site and continues to earn the reputation among Bingo players as the best place to win large Bingo jackpots online. BingoMania.com offers its players a wide breadth of games and promotions including: 75-number and 90-number Bingo, Tournaments, High Roller Games, Slots, Keno, Video Poker and Pull Tabs.

About Parlay Entertainment

Parlay Entertainment Inc. is the world's leading developer and dominant licensor of Internet Bingo solutions. As the inventor and patent holder of Internet Bingo¹, Parlay is the first company in the world to develop and deploy a commercial Internet Bingo product, offering a best-in-class suite that features 75-number and 90-number Bingo, Lottery and Casino entertainment software. With its unmatched depth of industry experience and a comprehensive range of products and services, Parlay offers business solutions to fit every need. Parlay has a seven year proven track record built on the success of our clients: in 2004, more than 1,850,000 paying players enjoyed the experience of playing Parlay games on our licensees' gaming websites. Parlay is headquartered in Oakville, Canada with offices in Bridgetown, Barbados.

[Casinonews]

Parlay Entertainment Releases New Online Lotto Games
First client expected to launch hourly and weekly Lotto draws in Q2 2005

OAKVILLE, Ont. — January 21, 2005 — Parlay Entertainment Inc. (Pink Sheets: PRYNF), the world's leading supplier of Internet Bingo solutions, is pleased to announce that it has expanded the breadth of its innovative suite of Internet gaming products with the release of two new Lotto games. The release includes an online version of 6/49-the world's most popular type of Lotto draw-as well as a unique hourly game where five numbers are selected from a pool of 15.

"Parlay-powered bingo and casino sites have experienced phenomenal success over the past five years," said Trent Schwartz, Product Manager at Parlay. "A number of our European customers indicated that they were planning to launch sites for European Lotto players, and approached Parlay with their software needs. We subsequently developed the games to their specifications, on time and on budget. We anticipate the first launch by the end of the second quarter."

In Europe, over $50 billion USD is spent on lottery games each year accounting for almost 50% of lottery wagers worldwide. Online Lotto draws have become an increasingly popular alternative to draws administered by individual states or countries. Players are turning to Internet Lotto draws for convenience, improved odds, and larger jackpots.

"Our existing selection of instant lottery products such as Video Keno and Pull-Tabs will be well complemented by the addition of these new Lotto games," said Perry Malone, Chief Technology Officer at Parlay. "There is significant interest in the lottery sector of the i-gaming market as casino, sportsbook and bingo operators seek to expand their game offerings. We will continue to grow our product line to cater to this emerging market."

[Casinonews]

Parlay Entertainment Announces the Launch of Two 90-number Bingo Sites in the United Kingdom
The UK's only play-for-cash, 90-number Bingo sites are now live.

LONDON, U.K. — January 24, 2005 — Parlay Entertainment Inc. (Pink Sheets: PRYNF), the world's leading supplier of Internet Bingo solutions, announced today the launch of two new Bingo sites targeting the United Kingdom's emerging online Bingo market.

Bingos.co.uk and BingoMania.co.uk join existing Parlay licensee, thepalaces.com, as the only Sterling based, 90-number Bingo games on the Internet. Although other Bingo sites targeted towards the UK exist, they offer only a North American style 75-number game that is not familiar to British Bingo players. Parlay's "Bingo 90" product is the first online implementation of the game that truly recreates the manner in which Bingo is played in traditional UK clubs.

"We are excited to be one of the first online games to cater to the three million people that regularly play Bingo in the United Kingdom," said Enrique Dubois, representing Global Gaming Entertainment of Curacao, Netherlands Antilles. "We are confident that, as an early entrant in the UK, our new site will outperform the already impressive growth we've seen in our original Bingos.com site launched on the Parlay platform in 2002."

BingoMania President, Stuart Gordon, is also enthusiastic about his company's opportunities in the UK. "In 1996, BingoMania.com was one of the first Bingo sites on the Internet. We understand how critical it is to be first-to-market. The UK online Bingo market is virtually untapped and we intend to make a substantial impact by building a friendly player community and introducing the helpful support, creative promotions and large prizes we are famous for," said Mr. Gordon. "Parlay's Flash gaming products are second-to-none in the industry and early player feedback indicates that their 90-number game successfully reproduces the UK Bingo experience online."

Last year, Britons staked more than £1 billion at land-based Bingo halls and visited Bingo clubs some 95 million times-seven times as many visits as to Premiership football games.

"The game of Bingo is a global phenomenon with unique variations in each region," explained Trent Schwartz, Parlay Entertainment's Product Manager. "Our expansion into the UK validates our assertion that the appetite for playing Bingo online is just developing. We will continue to adapt our product to the local format, rules, language and currency of major Bingo markets around the world."

About Bingos.co.uk and Bingos.com

Bingos.com is owned and operated by Global Gaming Entertainment, a registered company located in Curacao, Netherlands Antilles. The company operates under a gaming license granted by the government of Curaçao, Netherlands Antilles. It is regulated by state laws, under the supervision of the Offshore Gaming Authority.

About BingoMania.co.uk and BingoMania.com

Established in 1996 and known for excellent customer service, BingoMania.com is widely regarded as the number one Bingo site and continues to earn the reputation among Bingo players as the best place to win large Bingo jackpots online. BingoMania.com offers its players a wide breadth of games and promotions including: 75-number and 90-number Bingo, Tournaments, High Roller Games, Slots, Keno, Video Poker and Pull Tabs.

[Casinonews]

Parlay Entertainment Further Expands Into the United Kingdom Through Licensing Agreement With St. Minver
Collaboration will provide UK players with 75-number and 90-number Bingo Network for some of the largest brands in the UK

LONDON, U.K. — February 11, 2005 — Parlay Entertainment Inc. (Pink Sheets: PRYNF), the world's leading supplier of Internet Bingo solutions, announced today the completion of a license agreement with St. Minver Limited, Europe's largest provider of 'white label' fully managed gaming solutions. The deal highlights Parlay's further expansion into the UK and reinforces its dominant position in the online Bingo market.

Using Parlay's industry leading Bingo software, St. Minver will launch the UK's first 90-number Bingo Network in Q1 2005. The Network, which will also offer 75-number Bingo, will operate on an aggregated model so that all partners in the Network will benefit from shared liquidity and large jackpots. That liquidity will include Gala Bingo which is the UK's largest land-based Bingo operator with approximately 40% market share, 168 clubs, some 35 million admissions annually and a database of over 6 million UK customers. Additional brand name partners will be announced after the Network's successful launch in the coming months.

"We are very excited to be the first to launch a 90-number Bingo Network in the UK," said David Kicks, St Minver's Business Development Director. "We are confident that as a result of our relationships with some of the UK's leading brands, our collaboration with Parlay will result in us creating Europe's largest multi-partner Bingo Network".

With some £1,222 million spent in UK Bingo clubs annually, much has been made of converting some of this land-based play to the Internet. "Bingo is the most socially acceptable form of wagering in the world and, as such, is a global phenomenon with vast untapped land-based players who can convert to Internet play," explained Andrew Branscombe, Vice President of Sales for Parlay Entertainment. "A vastly overlooked dimension to all this is that the Internet may very well also introduce entirely new demographic groups to Bingo. As online Bingo starts to explode from the early stage of its development as an e-gaming vertical, we anticipate additional entry by large Internet and traditional leisure and gaming brands."

About St. Minver Limited

Established in 2003, St Minver purchased Gala Interactive from Gala Group PLC. St. Minver presently operates 27 private casinos and poker sites and manages the operational services for an additional 20 poker sites. St. Minver operates from Gibraltar under a Gibraltar Gaming license.

[Casinonews]

Parlay Entertainment Announces Re-launch of Bingo Brand with Sportingbet Plc
Sportingbet's strategy of attracting customers seeking leisure and recreation fits very well with Bingo, the world's most socially accepted form of wagering

LONDON, U.K. — March 9, 2005 — Parlay Entertainment Inc. (Pink Sheets: PRYNF), the world's leading supplier of Internet Bingo solutions, announced today the launch of BingoBilly.com by the US Region of Sportingbet plc. The licensing arrangement highlights and reinforces Parlay's dominant position in the online Bingo market and its mission to power the largest Bingo brands on the Internet.

Now that it has built its brands to worldwide dominance in the sports betting, casino and poker sectors, with brands like Sportsbook.com, SportingbetUSA.com and Paradisepoker.com the Sportingbet Group is now turning its focus to the rapidly expanding Internet Bingo vertical. Using Parlay's industry leading Bingo software, Sportingbet intends to start building a leadership position through the launch of www.BingoBilly.com.

"We are very excited about our launch into the US online Bingo market" said Andy May, Sportingbet's Director of Strategic Marketing. "It is a chance for us to participate in this rapidly expanding sector of the gaming industry, and gives us the ability to further broaden our player base demographic to women and gamers that enjoy Bingo and additional soft games. This is an appealing market for us, particularly given the recent growth of Internet Bingo in the United States."

"We are pleased to assist this true Internet giant by leveraging our award winning software, along with our seven years of expertise in online Bingo," explained Andrew Branscombe, Vice President of Sales for Parlay Entertainment Inc. "With its huge existing customer base and extensive marketing channels, Sportingbet will be well positioned to succeed in this rapidly growing gaming vertical. With some $70-90 billion (USD) spent in land-based Bingo halls every year, we expect the entry of operators such as Sportingbet to create explosive growth for Internet Bingo".

About Sportingbet Plc

UK based Sportingbet Plc is a fully regulated and licensed, tax-free, online sports betting and gaming company that is publicly traded on the Alternative Investment Market of the London Stock Exchange (AIM). The Sportingbet Group has over 2.2 million registered customers and takes 13 bets per second and deals 10 games of Poker per second. It operates under regulated licences in the U.K., Canada, Australia, Antigua and Curacao, and trades in over 150 countries.

[Cabo]

Parlay Announces Participation at BingoWorld 2005
Focus on land-based Bingo halls with Free-Play, Parlay's play-for-fun Bingo line

OAKVILLE, Ont. — March 21, 2005 — Parlay Entertainment Inc. (Pink Sheets: PRYNF), the world's leading supplier of Internet Bingo solutions, is pleased to announce its participation at the annual BingoWorld 2005 Conference & Expo from March 22 to 24, 2005 at the Riviera Hotel & Casino in Las Vegas, USA.

"Parlay is delighted to be participating at BingoWorld 2005. We are excited at the opportunity to work with land-based Bingo properties to demonstrate how our play-for-fun Bingo line - known as "Free-Play" - can be leveraged to boost hall attendance and profits," said Ted Colivas, Parlay's Director of Business Development.

"The Internet is not a replacement for Bingo halls, but is simply another channel for players to enjoy the game," continued Mr. Colivas. "Rather than losing them to the Internet, Bingo halls can use Free-Play to reinforce the loyalty of their customers and, in addition, gain access to more players in entirely new demographics."

The situation facing the land-based Bingo market is very similar to what happened to the movie theatre industry when videocassettes first appeared. Although based on the same content, movie theatres and videos fulfill different entertainment niches. Had the movie theatre industry recognized and embraced videos as a new distribution channel, they would have been able to participate in the huge growth of the video and DVD industry.

Brick-and-mortar Bingo properties generate an estimated 1.8 billion visits annually world-wide. As the online Bingo sector continues its explosive growth, some of the more innovative land-based Bingo operators in markets such as the UK and Latin America are leveraging the online game in order to provide additional contact with their players, enable better player tracking and provide additional profit opportunities.

[Cabo]

Parlay Entertainment Receives TST Certification
Technical Systems Testing North America Certifies Parlay's Random Number Generator (RNG)

OAKVILLE, Ont. — April 28, 2005 — Parlay Entertainment Inc. (Pink Sheets: PRYNF), the world's leading supplier of Internet Bingo solutions, is pleased to announce it has received official certification of its Random Number Generator (RNG) from Technical Systems Testing North America Inc. The Parlay RNG complies with generally accepted industry standards for highly regulated jurisdictions.

TST's Letter of Certification for the Parlay RNG indicates that "TST has verified through mathematical and statistical analysis, within a ninety-five percent confidence level (this is a documented level of confidence for such statistical analysis), that the Parlay RNG distributes numbers with sufficient non-predictability, fair distribution and lack of bias to particular outcomes."

As an internationally recognized Accredited Testing Facility, TST offers a full range of testing and consultation services for terrestrial (traditional / land-based) and interactive-based gaming, wagering, lottery, e-commerce and information technology industries, to ensure that gaming operates in a manner that is fair, secure and auditable. TST's services are delivered by a multi-disciplined team of trained computer scientists, engineers, mathematicians and information systems auditors, possessing first hand knowledge and experience in today's leading edge technologies. TST provides an impartial service that is renowned for its probity and fair dealing.

"This certification verifies that Parlay's industry leading games have been developed with an emphasis on fairness and trust," said Perry Malone, Chief Technology Officer of Parlay Entertainment Inc. "Online gaming provides fun and entertainment. The players of Parlay games have the added confidence that the game is being played fairly."

[Cabo]

Parlay Entertainment Announces Financial Results for Q1 2005
All amounts in United States Dollars

OAKVILLE, Ont. — April 29, 2005 — Parlay Entertainment Inc. (Pink Sheets: PRYNF), the world's leading supplier of Internet Bingo solutions, today announced its results for the three-month period ended March 31, 2005.

Highlights for the first quarter of fiscal 2005 include:


New corporate record for revenue at $1,322,339, up 7% from the prior record and up 33% on a sequential basis;
New corporate record for royalty revenue at $1,136,974, up 21% from both the prior record and on a sequential basis;
Net income of $103,861 or $0.01 per share, fully diluted.

Achievements include:


Installation of software on three new licensee sites;
New licensee wins including agreements with St. Minver Limited and Sportingbet plc;
Conditional approval of Parlay's application for listing on the TSX Venture Exchange;
Establishment of Malta licensing company with Tier 4 license approved in principle by Malta Gaming Authority;
Certification of Parlay's Random Number Generator by Technical System Testing.

"The first quarter of 2005 reflects the positive result of our ongoing efforts since Q3 2003 to focus on our clients and our leading edge bingo technologies", said Scott F. White, President and CEO. "We have worked with our clients to maintain our leadership position in online Bingo and, towards the end of 2004, we started to see the long anticipated growth in this market. In particular, this is taking place amongst licensees in the UK and continental Europe who focus their efforts on 90-number bingo. For the balance of 2005, our efforts will be even more focussed on these markets," Mr. White continued, "and we anticipate growth in both the number and quality of licensees, as well as the associated revenue opportunities. Our recently announced agreement with St. Minver and the recent and anticipated launch of major brands as our network partners, validates our belief that the UK and Europe represent excellent markets for the growth of online bingo."

Parlay generates revenue from software licensing, installation fees and e-digital and support services. Consolidated revenues increased to $1.3 million in Q1 2005 from $0.9 million in Q1 2004 or 44% quarter over quarter. This growth represents continuing growth across Parlay's portfolio of licensees and the impact of new licensees during the quarter.

Expenses in Q1 2005 were $1.1 million, compared with $1.1 million in Q1 2004. Although cost levels were similar quarter over quarter, there were savings in 2005 from non-recurring costs in 2004. These savings were offset by increased compensation costs in 2005, due to the adverse impact of the increase in the value of the Canadian dollar, together with costs associated with the Company's application to list its shares on the TSX Venture Exchange.

Net income for the quarter was $0.1 million, or $0.01 per diluted share, compared to a net loss of $0.2 million, or $(0.02) per diluted share in Q1 2004.

Parlay remains debt free with a stable cash position.


PARLAY ENTERTAINMENT INC.
CONSOLIDATED BALANCE SHEETS
(incorporated under the laws of the province of Ontario)


in whole U.S. dollars
---------------------
(Unaudited) (Audited)
March 31, December 31,
ASSETS 2005 2004
------------- --------------
Current assets:
Cash and cash equivalents $ 455,948 $ 708,897
Accounts receivable:
Trade, less allowance of
approximately $194,000 831,628 701,963
($269,000 - 2004)
Other 32,651 13,130
Prepaid expenses, deposits and
other assets 93,674 76,522
------------- --------------
Total current assets 1,413,901 1,500,512

Equipment - net 74,880 81,554
Future income tax asset 20,000 20,000
------------- --------------

$ 1,508,781 $ 1,602,066
------------- --------------
------------- --------------

LIABILITIES AND
SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable and
accrued liabilities $ 256,692 $ 316,211
Income taxes payable 106,025 275,645
Deferred revenue 234,377 300,299
------------- --------------
Total current liabilities 597,094 892,155
------------- --------------
Shareholders' equity:
Common shares, 50,000,000
shares authorized,
11,475,500 shares issued
and outstanding 927,292 927,292
Contributed surplus 1,696,915 1,599,000
Retained earnings
(accumulated deficit) (1,712,520) (1,816,381)
------------- --------------
911,687 709,911
------------- --------------

$ 1,508,781 $ 1,602,066
------------- --------------
------------- --------------




PARLAY ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
RETAINED EARNINGS (ACCUMULATED DEFICIT)
(in whole U.S. dollars, except for per share amounts).
(Unaudited)

Three-Months Ended
------------------
March 31
--------------
2005 2004
------------- -------------
Revenues:
Royalties $ 1,136,974 $ 842,070
Installation fees 124,841 16,187
e-digital and support services 60,524 37,900
------------- -------------
1,322,339 896,157
------------- -------------
Expenses:
Sales, marketing and
services to licensees 245,797 158,676
Research, software development
and support services 452,406 496,332
General and administrative 285,310 345,854
Amortization 14,869 23,025
TSX Venture Exchange Listing 102,330 -
------------- -------------
1,100,712 1,023,887
Restructuring provision - 5,000
License agreement termination
write-off - 60,317
------------- -------------
1,100,712 1,089,204
------------- -------------

Income (loss) before income taxes 221,627 (193,047)
------------- -------------

Income tax provision (recovery)
Current 117,766 (15,038)
Future - -
------------- -------------
117,766 (15,038)
------------- -------------

Net income (loss) for the period 103,861 (178,009)

Retained earnings (accumulated
deficit), beginning of period (1,816,381) (1,222,599)
------------- -------------

Retained earnings (accumulated
deficit), end of period $ (1,712,520) $ (1,400,608)
------------- -------------
------------- -------------

Net income (loss) per share:
Basic $ 0.01 $ (0.02)
------------- -------------
------------- -------------
Diluted $ 0.01 $ (0.02)
------------- -------------
------------- -------------

Weighted average number of common
shares outstanding:
Basic 11,475,500 10,870,500
------------- -------------
------------- -------------
Diluted 12,775,084 10,870,500
------------- -------------
------------- -------------




PARLAY ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in whole U.S. dollars)
(Unaudited)
Three-Months Ended
------------------
March 31
--------------
2005 2004
------------- -------------

Cash flows from operating activities:
Net income (loss) for the period $ 103,861 $ (178,009)
Adjustments to reconcile net
income (loss) to
net cash (used in) operating
activities:
Stock option and share expense 97,915 104,589
Amortization 14,869 23,025
Restructuring provision - 5,000
License agreement termination write-off - 60,317
Changes in non-cash working
capital items:
Accounts receivable (149,186) (83,113)
Prepaid expenses, deposits and
other assets (17,152) (14,982)
Accounts payable and accrued
liabilities (59,519) (110,631)
Restructuring reserve payments - (52,350)
Income taxes recoverable / payable (169,620) 41,818
Deferred revenue (65,922) 71,313
------------- -------------
Net cash used in operating activities (244,754) (133,023)
------------- -------------

Cash flows from investing activities:
Purchases of equipment (8,195) -
Proceeds on disposal of equipment - 1,509
------------- -------------
Net cash provided by (used in)
investing activities (8,195) 1,509
------------- -------------

Net decrease in cash (252,949) (131,514)

Cash and cash equivalents,
beginning of period 708,897 368,560
------------- -------------

Cash and cash equivalents,
end of period $ 455,948 $ 237,046
------------- -------------
------------- -------------

Cash and cash equivalents consist
of the following:
Cash $ 382,229 $ 164,605
Cash equivalents 73,719 72,441
------------- -------------
$ 455,948 $ 237,046
------------- -------------
------------- -------------
Supplemental cash flow activities:
Income taxes paid / (received) $ 287,386 $ (56,856)
------------- -------------
------------- -------------
Interest paid $ - $ -
------------- -------------
------------- -------------

About Parlay Entertainment

Parlay Entertainment Inc. is the world's leading developer and dominant licensor of Internet Bingo solutions. As the inventor and patent holder of Internet Bingo¹, Parlay is the first company in the world to develop and deploy a commercial Internet Bingo product, offering a best-in-class suite that features 75-number and 90-number Bingo, Lottery and Casino entertainment software. With its unmatched depth of industry experience and a comprehensive range of products and services, Parlay offers business solutions to fit every need. Parlay has a seven year proven track record built on the success of our clients: in 2004, more than 1,850,000 paying players enjoyed the experience of playing Parlay games on our licensees' gaming websites. Parlay is headquartered in Oakville, Canada with offices in Bridgetown, Barbados, and Valletta, Malta.

Contact:

Parlay Entertainment Inc.
Scott White, President & CEO
Tel: +1 (905) 337-6505
Email: swhite@parlaygroup.com


David Callander, CFO
Tel: +1 (905) 337-6516
Email: dcallander@parlaygroup.com



¹ United States Patent No. 6,585,590 "Method and system for operating a bingo game on the internet", with other Patent applications pending in other countries