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eBingo Caliente to Launch Using Parlay Entertainment Software

Spanish language online bingo site will target Mexico

OAKVILLE, ONTARIO, Aug 8, 2005 -- Parlay Entertainment Inc. (CA:PEI)(PINK SHEETS:PRYNF), the world's leading supplier of Internet bingo solutions, is pleased to announce that it has completed a software licensing agreement with Hipodromo de Agua Caliente, S.A. de C.V., the renowned 90-year-old race and sportsbook operator based in Tijuana, Mexico.

eBingo Caliente (www.caliente.com.mx) will be the world's first Internet bingo site to specifically target the Mexican and South American markets with a Spanish language, 90-number bingo product. The website is expected to launch in the third quarter of 2005, and will feature a Spanish language user interface as well as Spanish-speaking bingo callers.

"Caliente has chosen Parlay's software in order to be at the forefront of the burgeoning Internet bingo industry," said Andrew Branscombe, Vice President of Sales for Parlay Entertainment Inc. "Caliente has a proud history of firsts, including the distinction of being the first online sportsbook to link with satellites in the 1990's. eBingo Caliente will give this well-known entertainment brand first mover status in a very large and relatively untapped entertainment market.

"The market for online bingo is virtually untapped outside of English-speaking North America and the United Kingdom," continued Mr. Branscombe. "Bingo is one of the most popular games in the world, and yet Spanish-speaking players have been vastly underserved by the online game."

"It has always been our principle to provide the best available products to both our land-based and Internet customers, hence our decision to choose Parlay Entertainment over the other players in the market," said Victor de la Fuente, Corporate Director of Wagering and New Projects for Caliente.

"With the combination of Parlay's leading bingo solutions and Caliente's gaming operations, our two companies look forward to bringing the excitement of Internet bingo into Mexico."

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 bingo1, Parlay is the first company in the world to develop and deploy a commercial Internet bingo product, offering a best-in-class suite that features 75-number and 90-number bingo, lottery and casino entertainment software. With its unmatched depth of industry experience and a comprehensive range of products and services, Parlay offers online gaming solutions to fit every need. Parlay has a seven year proven track record built on the success of our clients: in the last 12 months, more than 2.2 million paying players enjoyed the experience of playing Parlay games on our licensees' gaming websites. Parlay is headquartered in Oakville, Canada with offices in Bridgetown, Barbados and Valletta, Malta.

About Caliente

Hipodromo de Agua Caliente, S.A. de C.V. is a Mexican corporation that has been dedicated to the entertainment and wagering industry since 1916. The company's roots are in the famous Agua Caliente Race Track immortalized in the recent movie Seabiscuit. Presently, Caliente Group operates more than 160 Race & Sports Books, where customers can enjoy and wager on races held at the most important horse and greyhound racing tracks in the world, as well as major international sporting events.

Its technological and human infrastructure enables Caliente to provide operational services in a number of countries including: Antigua, Argentina, Aruba, Brazil, Colombia, Curacao, Ecuador, Mexico, Panama, Paraguay, Peru, St. Maarten, Uruguay, Venezuela, and now in Austria.

Additionally, Caliente Group has operated a Greyhound Track in Tijuana, Mexico daily since 1947; as well as 20 land-based Bingo Halls in cities throughout Mexico.

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.

Parlay Entertainment Inc.
Andrew Branscombe
VP of Sales
+1 (905) 337-6500
sales@parlaygroup.com
www.parlaygroup.com

or

Hipodromo de Agua Caliente, S.A. de C.V.
Erendira Torres Martin, New Projects Manager
Corporate Division of Wagering and New Projects
+52 (664) 647 4722
info@caliente.com.mx

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