Parlay Entertainment Announces Results for Q4 and Fiscal 2009

All amounts in Canadian Dollars

"2009 was a transitional year for Parlay with significant challenges but also the emergence of numerous opportunities. As a result of our divestiture in 2008, we commenced developing a strategy to replace recurring revenue which was lost as a result of that transaction" said Scott White, Parlay's Chief Executive Officer. "Given the significant consolidation in the online bingo sector, and the fact that some of our customers were part of that consolidation, timing was such that our business model could be expanded allowing us to move into the business of operating gaming platforms. Throughout 2009 we invested significant financial and human capital resources in the development of our Alderney and North American gaming platforms, which operate under the brand Parlay Games Services. Although these platforms are accelerating in terms of growth today, we generated very little return from this significant investment in 2009, resulting in a substantial loss and cash burn."

"With 2009 as our reformulation year," concluded Mr. White "we are pleased to report that we have in excess of 40 networked partner sites, which are either launched or launching within PGS. We have numerous prospective partner arrangements in various stages of development. With the market changing again because of additional consolidation, we are now in a unique position to offer services to various customers who are searching for new solutions in the bingo vertical. With a revised cost structure and a robust and envied technology platform, it will be our intention to supplement our traditional software licensing model throughout 2010 with the growth of PGS throughout the world. As we have outlined previously, our offering will be flexible and unique, fostering customer access into multiple software technologies offering multiple software vendors, both gaming and non-gaming products and multiple languages and currencies"

Parlay generates revenue from software licensing, installation and implementation fees and support services. Consolidated revenues were $0.8 million in Q4 2009 compared to $1.2 million in Q4 2008.

Expenses in Q4 2009 were $1.4 million, unchanged from $1.4 million in Q4 2008. Increased foreign exchange losses offset reduced compensation expenses.

A beneficial tax adjustment increased the tax recovery recorded in Q4 2009 by $0.4 million.

Net loss for the quarter was $0.06 million, or $(0.01) per diluted share, compared to net loss of $0.06 million, or $(0.00) per diluted share, in Q4 2008.

Consolidated revenues were $3.4 million for 2009 compared to $8.5 million in 2008. 2008 consolidated revenues included the proceeds from the divestiture which were non-recurring software license fees of $2.9 million.

Expenses in 2009 were $5.6 million, down from $7.7 million in 2008. The decrease represented reduced compensation expenses together with the absence of certain non-recurring expenses from 2008.

A beneficial tax adjustment increased the tax recovery recorded in 2009 by $0.4 million.

Net loss for 2009 was $1.4 million, or ($0.11) per diluted share, compared to a net income of $0.5 million, or $0.04 per diluted share, in 2008.

Parlay remains debt free and Parlay's cash balance at December 31, 2009 was $1.1 million. Corporate income tax refunds received (and to be received) in 2010 are estimated at $1.2 million.