Parlay Entertainment signs letter of Intent

Parlay Entertainment, the leading software supplier for the online bingo industry has entered into a letter of intent for a proposed sale of the company to PEIC Acquisition Corp.  The LOI is conditional upon due diligence by the purchaser including execution of a definitive agreement, court and regulatory approvals and the approval of the board and shareholders of Parlay.  During the conditional period, Parlay shall not solicit or initiate any competitive offers or continue discussions with any existing party until after January 30, 2008.  This exclusivity provision does not restrict Parlay’s ability to respond to any proposals or offers at a higher price.Under this current offer, each Parlay shareholder would receive approximately $0.95 Canadian, a premium of almost 80% to current share price.  Some management shares will roll over into the new entity.While there are no guarantees or assurances that this transaction will be completed, given the recent share value since the negative effects of the 2006 passing of the UIGEA in the United States, it is likely that shareholders will vote in approval of the offer.Parlay, the first commercial company to supply bingo games online, provides technology to some of the biggest brands in the world including MSN, Virgin, and Yahoo! and is headquartered in Oakville, Canada.The purchaser is lead by the founder of SportingBet, and industry veteran Mark Blandford.  Blandford’s experience and connections in the industry will be an asset to the operations going forward.