Parlay Entertainment announced results for first quarter 2010

"Throughout Q1 2010, we continued the development and integration of partners into those Parlay Game Services platforms using our Parlay5 technology. At the end of the quarter, we had approximately 45 partner sites launched or launching on our Alderney-based managed solution and three sites, including our first Facebook bingo application, launched or launching into North America.

"Q1 2010 revenue includes only initial, modest revenue from new partners, which we expect will continue to improve over the long-term" continued Mr. White. "Although we note that Q1 2010 revenue was a sequential improvement for Parlay over Q4 2009, it has not yet recovered to the levels of Q1 2009. As liquidity levels increase monthly with the launch and growth of existing and new partners, we expect to see additional traction from new sales, as new brands and brands from other networks look to diversify. We are optimistic that 2010 will see continued improvements to revenue, earnings and cashflow, as Parlay succeeds in the growth of its multi-jurisdictional gaming platforms".

Parlay generates revenue from software licensing, installation and implementation fees and support services. Consolidated revenues were us$ 0.7 million in Q1 2010 compared to us$ 952,971 in Q1 2009. Expenses in Q1 2010 were us$ 1.3 million, up from us$ 1.2 million in Q1 2009. Increased foreign exchange losses offset reduced operating expenses. Net loss for the quarter was us$ 0.47 million, compared to net loss of us$ 0.19 million in Q1 2009.

Parlay remains debt free and Parlay's cash balance at March 31, 2010 was us$ 0.7 million. Corporate income tax refunds received subsequent to March 31, 2010 were approximately us$ 0.28 million and anticipated refunds to be received in Q4 2010 are estimated at us$ 0.57 million.