SEATTLE, Sept. 12, 2006 — Phantom Entertainment, Inc. (OTC Bulletin Board: PHEI) today announced it has contracted with VertiCity, a global software development firm, to modify the Company’s Phantom(R) Game Service software for Windows XP and Windows XP Media Center operating systems.

“The Phantom Game Service software was originally engineered to run on a Windows XP embedded operating system as a standalone configuration managed by our service and content servers,” noted Greg Koler, President and CEO of Phantom Entertainment. “We intend to modify our software to run in the user-controlled PC environment.

“We expect the Phantom Game Service PC client software will be ready during the first quarter of 2007,” Koler said. “This move will enable the Company to license the Phantom Game Service technology to well-established manufacturers of PCs and digital home entertainment centers.

“The Company remains committed to its original mission of delivering the first end-to-end, on-demand game service. Our course has been altered to deliver this service to PCs as well as to entertainment centers in the comfort of the living room,” Koler explained.

The Company is on schedule to proceed with manufacturing of the Phantom(R) Lapboard, a combination wireless keyboard, laser mouse and hard surface that enables users to work or play games from any comfortable setting. The Company expects to begin shipping in November.

About VertiCity

VertiCity was founded in 2001 as a privately held conglomeration of web/software technologies and services with corporate headquarters in New York City and software development centers throughout Southeast Asia. VertiCity provides software development services for clients throughout the world utilizing its REMS (Remote Employee Management System) to provide efficient and cost-effective solutions. The company’s services include application design, coding, internal testing, documentation, implementation, customer live testing and support. For more information, please visit

About Phantom Entertainment

Phantom Entertainment is an industry-leading global entertainment and interactive game company. Phantom Entertainment has developed and is marketing its first product, the Phantom Lapboard, a combination wireless keyboard, laser mouse and hard surface that enables users to work or play games from a couch, easy chair or any other comfortable setting in the home or workplace. The Company is in the development of its flagship product, the Phantom Game Service, anticipated to be the first end-to-end, on-demand game service for delivery to the living room. For more information, please visit

Safe Harbor Statement

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involved risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company’s reports filed with the Securities and Exchange Commission.


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