Casino and Gaming Television Canada Debuts Free Online Games from Parlay Entertainment

Market Wire, January, 2007

Parlay Entertainment Inc. (TSX VENTURE: PEI), the world's leading developer and licensor of Internet bingo software, today announced a partnership with Casino and Gaming Television Canada (CGTV) that allows its viewers to play casino and bingo games for free from the comfort of their own homes.

The specialty cable channel's website, www.cgtvcanada.com , now features free bingo, blackjack, video poker, slot machines and other online games that site visitors can play just-for-fun or to brush up on their gaming skills. Players use fun-money to wager on the various games and are awarded CGTV chips based on the amount of fun-money they have wagered on the site. In the future, players may be able to redeem their CGTV chips for chances to win a variety of prizes and rewards.

"With the addition of Parlay's gaming suite to CGTV Canada's website, our viewers now have the opportunity to interact with the CGTV brand online," said Allan Weinrib, Senior Director for CGTV Canada. "Since we are the first and only television network in North America to celebrate the casino and gaming lifestyle, it seemed like a natural fit to partner with Parlay to offer free online gaming content." CGTV Canada plans to promote the online games through advertising on its television network and in future print campaigns.

Free-play gambling websites are an increasingly popular form of online entertainment since they let players experience and practice games of chance before wagering cash at land-based casinos. Mainstream brands choose to offer free-play games on their websites in order to provide interactive content, drive website traffic, generate advertising revenue and increase marketing databases.

"Our free-play gaming solution allows web operators like CGTV Canada a hassle-free opportunity to reach new audiences with interactive online content," said Perry Malone, CTO for Parlay Entertainment. "Operators benefit by exposing players to branded messages, offers and other advertising within the game, while at the same time building their marketing database through site registration."

About Parlay Entertainment

Parlay Entertainment Inc. is the world's leading developer and licensor of Internet bingo solutions. As the inventor and patent holder of Internet bingo1, 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! and MSN.

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

About CGTV Canada

CGTV Canada is the first and only television network in North America dedicated exclusively to the casino and gaming lifestyle. As the leading Canadian provider of gaming content, CGTV's lineup includes more than 5,000 hours of poker programming annually, as well as other games including blackjack, bridge, backgammon, roulette, craps and more. The network is home to The CGTV Spread, the nation's first and only 24-hour ticker devoted entirely to sports odds and injuries, lottery numbers and casino and gaming news. Three distinct programming blocks highlight the network's schedule. CGTV Game Night airs weeknights in prime time, showcasing entertaining and instructional gaming programming. Vegas Saturday Nights explores Las Vegas with a variety of reality and entertainment-based programs. The Casino Sunday Nights takes viewers behind the scenes of the casino lifestyle with documentary programming. CGTV is on-line at www.cgtvcanada.com .

For more information on Parlay solutions and services, please visit our Web site 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.

(1) 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.

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