PENTHOUSE INKS PAY TV DISTRIBUTION DEAL WITH CED FOR LATIN AMERICA

DEAL COVERS NORTH AMERICA, LATIN AMERICA AND EUROPE - DEBUTS AT CTIA SHOW

(Los Angeles, CA – September 26, 2006) Penthouse Media Group, Inc. (PMGI) has signed a multi-year, exclusive agency agreement with veteran adult content distributor Cable Entertainment Distribution, Inc. (CED) to offer Penthouse TV content to cable and satellite pay-TV operators throughout Central and South America. Original productions including Penthouse Variations – the fetishes and alternative line, Penthouse Letters – where Penthouse Letters are brought to life, and the newly acquired Jill Kelly Productions line; will all be featured for immediate distribution.

“Our agreement with CED is one more important step in PMGI’s ongoing effort to deliver quality adult entertainment to consumers worldwide,” says Mark Rudolph, President of Licensing for PMGI. “CED has extensive industry knowledge, including past distribution experience with Penthouse branded programming, and a proven track record obtaining carriage for adult content on the major pay-TV platforms in Latin America.”

Marc Bruder, President of CED adds, “I am personally very excited about the opportunity to again work alongside such a respected company as Penthouse to help reinvigorate the brand in this market. We are already receiving a huge level of interest from our customers for the quality adult content that Penthouse releases.”

Penthouse currently publishes 12 international editions, produces and licenses video programming for television, Video-On-Demand, DVD, mobile phone and broadband distribution, operates www.penthouse.com; licenses products with a range of manufacturers and distributors, and licenses Penthouse boutiques. In addition, Penthouse Magazine comes to life in Penthouse Gentlemen’s Clubs across North America.

About Penthouse Media Group Inc.
Globally recognized as the premier adult entertainment and lifestyle brand, Penthouse Media Group Inc. is the largest adult entertainment company in the world. The company operates numerous social networking and adult entertainment Web sites and provides adult video entertainment, as well as Penthouse TV and a broad array of products and services via its numerous national and international licensees. Penthouse Media Group also publishes and distributes Penthouse Magazine and a widely circulated group of sister publications in countries throughout the world.

About Cable Entertainment Distribution Inc.
Cable Entertainment Distribution, Inc. (CED) is the leading U.S. distributor of Cable Version Adult
Programming to the Cable Broadcast, Lodging and Pay-Per-View markets nationwide. Founded in 1989,
CED currently represents over 90% of the Adult production industry and is active in placing their product on
an international basis.

Media Contact for Penthouse Media Group:
Kathleen Berzon
561.912.7034 or: kberzon@pmgi.com