Parlay Entertainment Inc. TSX VENTURE: PEI

OAKVILLE, ONTARIO--(Marketwire - Aug. 26, 2008) - Parlay Entertainment Inc. (TSX VENTURE:PEI), the world's leading supplier of Internet and TV bingo software solutions, announced today the completion of an agreement with 1st Technology LLC which agreement settles a patent infringement suit that had been brought against Parlay by 1st Technology. The patent rights asserted by 1st Technology LLC target enhanced interactivity and optimized delivery of high quality multimedia information over various bandwidth networks.

A Stipulation and Order of Dismissal has been filed with the United States District Court, District of Nevada. Although the terms are confidential, the settlement pertains to all of Parlay's direct and indirect software licensing activities up to the date of settlement. There was no admission of liability by either party.

"Given the cost of patent litigation, we determined that it would be a prudent corporate action to negotiate a settlement with 1st Technology. We are pleased to have reached an agreement which provides us with certainty" said Scott White, Parlay's Chief Executive Officer. Dr. Lewis, 1st Technology's Chief Executive Officer, added, "We are pleased to have this dispute with Parlay resolved and look forward to working with other leading companies to assist in achieving compatibility with 1st Technology's intellectual property."

About Parlay Entertainment

Parlay Entertainment Inc. is the world's leading developer and dominant licensor of Internet and TV bingo solutions. As the inventor and holder of Internet bingo patents(1), Parlay was the first company in the world to develop and deploy a commercial Internet bingo product. Parlay Bingo is available in both 75-number and 90-number versions and is complemented by a full suite of lottery and casino games. Our multi-player, multi-platform technology is used to power more online bingo sites than any other software provider in the world. Some of the world's best-known brands use Parlay Bingo solutions, including Virgin, Yahoo!, Paddy Power, NetPlay TV, Bingos.co.uk and the St. Minver, TGN and BingoNexus bingo networks. Parlay's head offices are in Oakville, Canada with offices in Bridgetown, Barbados and Valletta, Malta.

About 1st Technology

1st Technology LLC is a leading technology development company with a patent portfolio of advanced Internet and multimedia innovations. 1st Technology is headed by Internet pioneer Dr. Scott Lewis who led the development of the world's first single integrated circuit chip with on-board video and audio compression, advanced adaptive digital signal processing technology at Oxford University, and introduced multiple broadband Internet and multimedia technologies.

This document may contain statements about expected future events and/or financial and operating results of Parlay Entertainment Inc. that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.

(1) United States Patent No. 6,585,590, Canadian Patents No. 2,340,152 and 2,618,843, with other Patent applications pending in other countries.

The TSX Venture Exchange does not accept any responsibility for the adequacy or accuracy of this release.