Parlay Entertainment Inc. announced the launch of its Parlay Game Services (PGS) Managed Solution platform and the completion of the first three managed services agreements. The launch of the first network partner will coincide with the EiG conference in Copenhagen next week, with the others ramping up in sequence throughout September and October. Parlay announced the Alderney-based PGS offering in July of 2009 as an internationally focused central liquidity solution, offering remote gaming and Registration, Verification and Banking services. Built on the Parlay5 multi-language and multi-currency technology, PGS allows pooling of liquidity across currencies-something crucial to those operators who wish to expand into the rapidly expanding global market. The PGS platform will also leverage several recently completed technology partnerships to offer new content and enhanced functionality for the network, which have been developed and tested by other leading software development firms.

Parlay Entertainment Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported net loss of CAD 0.6 million or CAD 0.05 per diluted share compared to net income of CAD 0.3 million or CAD 0.02 per diluted share in second quarter 2008. The company reported revenue was CAD 768,072 million compared to CAD 2.6 million for the same quarter a year ago. Loss before income taxes was CAD 736,061 compared to income before income taxes of CAD 543,772 for the same quarter a year ago. Negative EBITDA was CAD 712,397 compared to EBITDA of 2,300,770 for the same quarter a year ago. Net cash used in operating activities was CAD 873,262 compared to net cash provided by operating activities of CAD 2,300,770 for the same quarter a year ago. Purchases of equipment were CAD 98,970 compared to CAD 3,333 for the same quarter a year ago. For the six months, the company's revenues were CAD 1.8 million compared to CAD 4.7 million in the first half of 2008. Net loss was CAD 0.7 million or CAD 0.06 per diluted share compared to a net loss of CAD 0.0 million or CAD 0.00 per diluted share, in the first half of 2008. Loss before income taxes was CAD 1 million compared to income before income taxes of CAD 104,590 for the same period a year ago. Negative EBITDA was CAD 977,529 compared to EBITDA of CAD 160,049 for the same period a year ago. Net cash used in operating activities was CAD 973,667 compared to net cash provided by operating activities of CAD 1,610,746 for the same period a year ago. Purchases of equipment were CAD 116,816 compared to CAD 4,645 for the same period a year ago.

Parlay Entertainment Inc. announced the launch of Parlay Game Services North America, providing a hosted and managed game content solution for the existing North American regulatory environment. Participating clients will harness the power of Parlay's award winning gaming platform to reach new customers and enhance the loyalty of existing customers. A web-based entertainment offering, PGS North America will connect land-based operators, suppliers and other businesses to an interactive community of games, entertainment and loyalty programs. The community will allow players and members-such as land-based bingo halls, gaming suppliers, marketing companies and promotions firms-to interact in a social network, through the use of bingo, chat and other forms of entertainment. Parlay is also pleased to announce the signing of its first customer who will use the PGS North America service, with more details to be announced once that customer is live. Parlay also announced that one of its long standing customers has itself publicly announced that it has entered into a memorandum of understanding with a Parlay competitor which contemplates the execution of various agreements for the supply of gaming software and services. This customer's arrangement also contemplates a private placement by a party related to the competitor which is subject to shareholder approval at a special shareholder meeting in addition to other regulatory approvals.