RECORD BREAKER QUARTER FOR PARLAY ENTERTAINMNET

10 November 2006

Newspaper

CCNMatthews
November 9, 2006
Ontario — All amounts in United States Dollars

Parlay Entertainment Inc. (TSX VENTURE:PEI), the world’s leading supplier of Internet bingo solutions, today announced record results for the three and nine-month periods ended September 30, 2006.

“We are extremely pleased to have established new corporate records during this quarter,” said Mr. Scott F. White, President and CEO, “increasing our third quarter revenue by 68% to $2.6 million, our third quarter earnings per diluted share by 50% to $0.03 and increasing our cash reserves by 131% (from December 31, 2005) to $2.9 million. With revenue for the nine-month period ended September 30, 2006 surpassing our revenue for all of fiscal 2005, we would conclude that our current share price does not adequately reflect our success in 2006 nor our prospects for 2007.”

Highlights for the third quarter of fiscal 2006 include:

  • New corporate record for revenue at $2,647,668, up 20% from the prior record for Q2 2006 and up 68% from Q3 2005.
  • Royalty revenue at $1,937,754, up 31% from Q3 2005.
  • New corporate record for net income at $501,931 or $0.03 per share, fully diluted, up from $262,583 in Q3 2005.
  • EBITDA(1) increased to $865,023, up from $326,418 in Q3 2005 and EBITDA(1) margin increased to 33% from 21% in Q3 2005.

Highlights for the first nine months of fiscal 2006 include:

  • New corporate record for revenue at $6,864,026, up 64% from the prior record for 2005.
  • New corporate record for royalty revenue at $5,814,548, up 51% from the prior record for 2005.
  • New corporate record for net income at $1,206,255 or $0.08 per share, fully diluted, up from $461,823 recorded in 2005.
  • EBITDA(1) increased to $2,082,345 from $705,923 in 2005 and EBITDA(1) margin increased to 30% from 17% in 2005.
  • Established a new corporate record for cash at $2.9 million, up 131% from December 31, 2005.

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