Playlogic Entertainment, Inc. Announces Half Year 2006 Financial Results

AMSTERDAM, THE NETHERLANDS, August 16, 2006: Playlogic Entertainment, Inc. (OTCBB: PLGC) announced financial results for the fiscal 2006 second quarter, ended June 30.

Revenues

For the six months ended June 30, 2006, net revenue climbed 325% to $3.1 million, from $0.7 million the year before. The change is primarily attributable to the release of new games (on PlayStation2, Xbox and PC) in the first quarter of 2006.

For the second quarter, ended June 30, 2006, revenues were $0.4 million versus $0.2 million, the comparable year-earlier period. The revenues were lower than the first quarter of 2006, because no games were released in the second quarter.

The first title to be released in the third quarter is "Age of Pirates: Caribbean Tales" (PC). This title will be available at retail on September 1, 2006 in Europe and September 5, 2006 in the US and Canada. The game has received excellent reviews.

Shortly thereafter "World Racing 2," "Knights of the Temple 2," "Gene Troopers" (all three on several platforms) and "Xyanide" (Xbox) will be released in the US. In the fourth quarter, the highly anticipated "Ancient Wars: Sparta" and "Infernal" will hit the shelves.

The company expects to substantially increase its net revenues for the balance of the year as a result of the planned releases.

Gross profit

For the six months ended June 30, 2006, gross profit totaled $1.2 million. For the six months ended June 30, 2005, gross profit totaled $0.6. This represents an increase of 102%. This growth was caused by the increase in revenues.

Highlighted Links

Playlogic web site

Net loss

Net loss from operations for the six months ended June, 2006, was $3.9 million compared to $1.6 million the same period the year before. The increased loss is primarily due to higher selling, marketing, general and administrative expenses and the investments made in the development of games, which will be released in the fourth quarter of 2006 and in the course of 2007. These investments were made to ensure the continual growth and development of the company.

Funding

Playlogic is currently in negotiation with professional parties in the US to strengthen its financial position and to continue to invest in its future growth by acquiring and publishing more high quality products.

About Playlogic:

Playlogic Entertainment, Inc. is an independent publisher of entertainment software for consoles, PCs, handhelds, mobile devices, and other digital media. Playlogic, established in early 2002, publishes game concepts across various genres. The company distributes its products worldwide through all available channels, online and offline.

Playlogic, who currently has approximately 75 employees, is listed on the OTC BB under the symbol "PLGC" and is headquartered in New York and Amsterdam. Its internal studio is based in Breda (The Netherlands).

Playlogic's portfolio includes games that are being developed by several teams at Playlogic Game Factory, Playlogic's in-house development studio based in Breda, as well as games developed by a number of studios throughout the world. Currently, 11 games on 16 platforms are under development, including "Age of Pirates: Caribbean Tales," "Age of Pirates: Captain Blood," "Ancient Wars: Sparta," "Infernal," and "Xyanide Resurrection," which will be published this year. "World Racing 2," "Knights of the Temple 2" and "Gene Troopers" have been released throughout Europe and will be released in the third quarter of the year in the US.

Playlogic is always looking for additional, high-quality games and acquires products that can be exploited in the complete value chain of digital entertainment products from games at retail to mobile games and digital TV.

FORWARD-LOOKING STATEMENTS

This release contains statements about Playlogic's future expectations, performance, plans, and prospects, as well as assumptions about future events. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including without limitation, business and economic conditions and trends; fluctuations in operating results; reduced customer demand relative to expectations; competitive factors; and other risk factors listed from time to time in the company's SEC reports. Actual results may differ materially from our expectations as the result of these and other important factors relating to Playlogic's business and product development efforts, which are further described in filings with the Securities and Exchange Commission. These filings can be obtained from the SEC's website located at www.sec.gov. Any forward-looking statements are based on information available to Playlogic on the date of this release, and Playlogic assumes no obligation to update such statements.

FOR MORE INFORMATION

Playlogic Entertainment, Inc.

Esther Berger

Corporate Communication & IR Manager

T: +31 20 676 03 04

E: eberger@playlogicint.com

For further information about Playlogic please visit:

www.playlogicgames.com