Chartwell, Parlay terminate agreement

CALGARY, Alberta – (PRESS RELEASE) -- Chartwell Technology Inc. (TSX:CWH) ("Chartwell") a leading provider of gaming software systems to the online and remote gaming industry and Parlay Entertainment Inc. (TSX VENTURE:PEI) ("Parlay") the world's leading provider of Internet bingo solutions, announce today their intention to terminate the proposed business combination, originally set out in a Letter of Intent (the "LOI") entered into and announced on August 30, 2006.

The continuing market uncertainty for the online and remote gaming industry generated by recent legislative actions in the United States has forced Chartwell to conclude that it will be unable to obtain a fairness opinion which supports the business arrangement or the share exchange ratio. Chartwell and Parlay have therefore concluded that their proposed business combination cannot be completed on the terms originally negotiated by the parties. As a result, Chartwell and Parlay have agreed to terminate all merger discussions. As part of this agreement, Chartwell has agreed to reimburse Parlay for a portion of its expenses in connection with the proposed business combination.

Nothwithstanding these unanticipated developments, Chartwell and Parlay intend to continue to explore joint venture business opportunities that were identified or considered during the merger discussions.