Parlay Entertainment Announces Record Financial Results for Q1 2006

30 April 2006

Global leader in Internet bingo software maintains profitable operations.

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-month period ended March 31, 2006.

Highlights for the first quarter of fiscal 2006 include:

- New corporate record for revenue at $2,013,218, up 13% from the prior record for Q4 2005 and up 52% from Q1 2005.

- Sixth sequential new corporate record for royalty revenue at $1,868,886, up 15% from the prior record for Q4 2005 and up 64% from Q1 2005.

- New corporate record for net income at $291,661 or $0.02 per share, fully diluted, up from $103,861 recorded in Q1 2005.

- EBITDA(1) increased to $512,572 from $236,496 in Q1 2005 and EBITDA(1) margin increased to 25% from 18% in Q1 2005.

Achievements for the first quarter include:

- Existing bingo network, St. Minver Limited, launches additional network partners with 13 in place at March 31, 2006.

- Existing bingo network, The Gaming Network Limited, adds additional network partners to their network with 10 in place at March 31, 2006.

- Release of Parlay 4, the latest version of Parlay's award-winning online bingo product. The release includes many additions and enhancements to Parlay's software suite, which is already the most popular Internet bingo technology in the world.

"Our financial results for Q1 2006 met our expectations and position us well to continue our growth experience through fiscal 2006, " said Scott F. White, President and CEO. "We continue to see growth from our new and existing licensees who are UK and European facing, but we are also seeing growth, and in some cases significant growth, from our customers who are US facing. We have announced a number of new license and network partner relationships over the past fiscal year, and only certain of these new arrangements have added significantly to revenue through March 31, 2006. It is our expectation that additional contributions will be made from previously announced licensees and network partners as they invest more time and resources in the advertising and promotion of their Internet bingo offerings."

"As a result of our revenue growth, we made further investments in human capital and other resources in Q1 2006, and these investments have been necessary to increase our capacity to develop and deliver software and services to our licensees and to enable us to better manage the development and delivery of software," continued Mr. White. "We will make further investments in our human capital throughout 2006 in order to support the increasing international demand for Parlay's software and Internet bingo in general."

Parlay generates revenue from software licensing, installation fees and e-digital and support services. Consolidated revenues increased to $2.0 million in Q1 2006 from $1.3 million in Q1 2005 or 52% quarter over quarter. The results represent continuing growth across Parlay's portfolio of licensees and the impact of new licensees during the quarter.

Expenses in Q1 2006 were $1.5 million, up from $1.1 million in Q1 2005. The increase represented the impact of higher compensation costs and higher costs to support licensees.

Net income for the quarter was $0.3 million, or $0.02 per diluted share, compared to $0.1 million, or $0.01 per diluted share in Q1 2005.

Parlay remains debt free and Parlay's cash balance at March 31, 2006 was $1.0 million.

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 2006 2005 --------------------------------

Current assets: Cash and cash equivalents $ 1,029,759 $ 1,272,510 Accounts receivable: Trade, less allowance of approximately $354,000 1,357,525 1,066,166 ($297,000 - 2005) Other 48,692 47,306 Income taxes recoverable 228,077 228,077 Prepaid expenses, deposits and other assets 156,320 94,261 -------------------------------- Total current assets 2,820,373 2,708,320

Equipment - net 229,128 210,540Future income tax asset 40,000 40,000 --------------------------------

$ 3,089,501 $ 2,958,860 -------------------------------- --------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities: Accounts payable and accrued liabilities $ 506,676 $ 533,877 Income taxes payable 169,176 379,789 Deferred revenue 237,423 262,775 -------------------------------- Total current liabilities 913,275 1,176,441 --------------------------------

Shareholders' equity: Common shares, an unlimited number of shares authorized, 12,850,765 shares issued and outstanding (12,728,265 - 2005) 1,261,960 1,206,876Contributed surplus 1,781,453 1,734,391Retained earnings (accumulated deficit) (867,187) (1,158,848) -------------------------------- 2,176,226 1,782,419 --------------------------------

$ 3,089,501 $ 2,958,860 -------------------------------- --------------------------------

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

Three-Months Ended -------------------------------- March 31, -------------------------------- 2006 2005 -------------------------------- (Unaudited) (Unaudited)

Revenues: Royalties $ 1,868,886 $ 1,136,974 Installation fees 48,625 124,841 e-digital and support services 95,707 60,524 -------------------------------- 2,013,218 1,322,339 --------------------------------

Expenses: Sales, marketing and services to licensees 164,458 245,797 Research, software development and support services 964,564 452,406 General and administrative 371,624 285,310 Amortization 24,240 14,869 TSX Venture Exchange Listing - 102,330 -------------------------------- 1,524,886 1,100,712 --------------------------------

Income before income taxes 488,332 221,627

Income tax provision Current 196,671 117,766 --------------------------------

Net income for the period 291,661 103,861

Retained earnings (accumulated deficit), beginning of period (1,158,848) (1,816,381) --------------------------------

Retained earnings (accumulated deficit), end of period $ (867,187) $ (1,712,520) -------------------------------- --------------------------------

Net income per share: Basic $ 0.02 $ 0.01 -------------------------------- --------------------------------

Diluted $ 0.02 $ 0.01 -------------------------------- --------------------------------

Weighted average number of common shares outstanding: Basic 12,825,765 11,475,500 -------------------------------- --------------------------------

Diluted 14,453,978 12,775,084 -------------------------------- --------------------------------

PARLAY ENTERTAINMENT INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in whole U.S. dollars)

Three-Months Ended -------------------------------- March 31 -------------------------------- 2006 2005 -------------------------------- (Unaudited) (Unaudited)

Cash flows from operating activities: Net income for the period $ 291,661 $ 103,861 Adjustments to reconcile net income to net cash used in operating activities: Stock option and share expense 47,062 97,915 Amortization 24,240 14,869 Changes in non-cash working capital items: Accounts receivable (292,745) (143,243) Prepaid expenses, deposits and other assets (62,059) (17,152) Accounts payable and accrued liabilities (42,749) (59,519) Income taxes recoverable / payable (210,613) (169,620) Deferred revenue (25,352) (71,865) --------------------------------Net cash (used in) operating activities (270,555) (244,754) --------------------------------

Cash flows from investing activities: Purchases of equipment (42,828) (8,195) Increase in accounts payable and accrued liabilities related to purchases of equipment 15,548 - --------------------------------Net cash (used in) investing activities (27,280) (8,195) --------------------------------

Cash flows from financing activities: Proceeds from issuance of common shares 55,084 -

--------------------------------Net cash provided by financing activities 55,084 - --------------------------------

Net increase (decrease) in cash (242,751) (252,949)

Cash and cash equivalents, beginning of period 1,272,510 708,897 --------------------------------

Cash and cash equivalents, end of period $ 1,029,759 $ 455,948 -------------------------------- --------------------------------

Cash and cash equivalents consist of the following: Cash $ 1,029,759 $ 382,229 Cash equivalents - 73,719 -------------------------------- $ 1,029,759 $ 455,948 -------------------------------- --------------------------------

Supplemental cash flow activities: Income taxes paid / (received) $ 407,228 $ 287,386 -------------------------------- -------------------------------- Interest paid $ - $ - -------------------------------- --------------------------------

(1) Management believes that EBITDA (earnings before interest, income taxes and amortization) is a useful supplemental measure of performance. However, EBITDA is not a recognized earnings measure under generally accepted accounting principles ("GAAP") and does not have a standardized meaning. Therefore, EBITDA may not be comparable to similar measures presented by other companies.

EBITDA is reconciled to net income as follows:

Three-Months Ended -------------------------------- March 31 -------------------------------- 2006 2005 --------------------------------

Net income $ 291,661 $ 103,861Interest - -Taxes 196,671 117,766Amortization 24,240 14,869 --------------------------------EBITDA $ 512,572 $ 236,496 -------------------------------- --------------------------------

Revenue $ 2,013,218 $ 1,322,339 -------------------------------- --------------------------------

% 25% 18% -------------------------------- --------------------------------

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 Bingo(2), Parlay is 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!, MSN and Littlewoods Gaming.

Parlay has an eight year proven track record built on the success of our clients: In 2005, more than 2.8 players wagered nearly $2 billion USD on gaming sites that use Parlay software. Parlay is headquartered in Oakville, Canada with offices in Bridgetown, Barbados, and Valletta, Malta.

For more information on Parlay solutions and services, please visit our website at www.parlaygroup.com.

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.

(2) 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

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

Contacts:Parlay Entertainment Inc.Scott WhitePresident & CEO+1 (905) 337-6505Email: swhite@parlaygroup.com

Parlay Entertainment Inc.David CallanderCFO+1 (905) 337-6516Email: dcallander@parlaygroup.com

SOURCE: Parlay Entertainment Inc.

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