(PEI) (NYSE: PLA, PLAA) announced today that Playboy, the world's best selling
men's monthly magazine, will launch a digital edition beginning with its
October 2005 issue in conjunction with Zinio Systems, Inc.

Publishing Writers/Business Editors/Government Writers

NEW YORK----The Association of
American University Press (AAUP ), the Professional and Scholarly
Publishing Division of the Association of American Publishers
(PSP/AAP), and PEN American Center, the original plaintiffs in the
pending lawsuit challenging the scope of OFAC's authority to regulate
publishing transactions with sanctioned countries, expressed both
appreciation for Nobel Winner Shirin Ebadie's participation in the
suit as a co-plaintiff , and understanding of her recently-announced
agreement to settle her complaint with OFAC in light of recent
revisions to the OFAC regulations that will allow her book to be
published in the U .
In September 2004, the AAUP, PSP/AAP and PEN filed suit against
the Office of Foreign Assets Control (OFAC), an agency of the U.

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Moreover, because of
our success with Playboy.
The issue includes the Girls of the Pac 10, a video game feature and pictorial
of video game femme fatales, as well as The Playboy Interview with George
Carlin.

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S. by scholars and professionals
in science, medicine , technology, business, law, reference, social
science and the humanities.pspcentral.

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We have worked with Zinio over
the last six months, offering subscription and single copies of our popular
special editions, and the response has been extremely positive.

About the AAP/PSP

Members of the Professional/Scholarly Publishing (PSP) Division of
the Association of American Publishers, Inc.

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As a result of the lawsuit, the government has since issued
revised regulations and granted a general license to publishers to
engage in all activities ordinary and incident to written publications
originating in Iran, Cuba, and Sudan. We are naturally delighted at this outcome for Ms.

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By launching
Playboy digital, we are offering consumers worldwide a digitized product
identical in every way with Playboy's print edition."
Playboy readers around the world can buy a digital subscription or single
copy by logging on to http://www.S.

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"Since the first issue in 1953, Playboy has been about lifestyles, and our
readers have been among the earliest adapters to cutting edge trends and
technologies," said Playboy Founder and Editor-In-Chief Hugh M.
A subscription or single copy will be delivered instantly via the internet
through a download to a PC, laptop or Mac.

OFAC Plaintiffs Acknowledge Ebadi Settlement But Continue to Press the Government

About the AAUP

The AAUP (www.

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The 2,500 PEN American Center (www.

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Moreover, the general
license that the revised regulations provide to publishers itself
contains some troubling provisions. The license excludes the work of
senior government officials in embargoed countries (for instance, the
memoirs of Fidel Castro , or the uncollected speeches of high-ranking
Iranian clerics--two hypothetical books which would be of real value
to American readers); and there is no guarantee of permanence or
transfer of this general license to any newly-embargoed nation. We are
continuing to discuss these matters with the government, and look
forward to a satisfactory conclusion.

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S.

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"
With 62% market share , Zinio has over 2 million subscribers in nearly
every country in the world.

Playboy Enterprises , Inc.
Treasury Department, to strike down regulations requiring publishers
to seek a license from the government to engage in the routine
activities necessary to publish works originating in embargoed
nations--regulations which violate the Berman Amendment exempting
"information and informational materials" from such embargoes. These revisions have allowed
many suspended publishing projects to go forward.org) 182
professional societies, commercial publishers and university presses
produce books, journals, computer software, databases and electronic
products.

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However, in light of our concerns regarding
OFAC's continued assertion of authority to license such publishing
transactions, the original plaintiffs are continuing to discuss these
matters with the government and the lawsuit remains pending. OFAC still claims the
authority to license and control First Amendment-protected activities ,
a claim which we believe to be untenable.

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"
Hefner continued, "The increased distribution and worldwide access will
also increase our loyal advertisers' reach to consumers, and provide
additional advertising sales opportunities as we are able to meet the growing
demand of companies to market online by offering ad sponsored links.
Collectively they publish around 10,000 books each year and over 700
journals in virtually every field of human knowledge.

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"The
tens of millions of consumers around the world who consider Playboy to be the
gold standard for entertainment for men will welcome our digital edition.

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zinio.

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Playboy Magazine Goes Digital

"
Playboy Enterprises' Chairman and CEO Christie Hefner added, "We see this
as a natural extension of the Playboy brand. The Division 's (www.

About PEN American Center

PEN American Center is an organization of over 2,500 prominent
novelists, poets, essayists, translators, playwrights, and editors.

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, the worldwide
leader in digital publishing and marketing services. "The creation
of Playboy's digital editions is a strong endorsement of Zinio's ability to
generate new readers in this dynamic medium.org) counts among its members 111 nonprofit
scholarly publishers affiliated with research universities, scholarly
societies , research institutions and museums located in 43 states. As
part of International PEN, it and its affiliated organizations have
defended free and open communication within and among nations for more
than 80 years.

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Playboy Enterprises Expands Its Online Offerings to Tap into
Growing Consumer and Advertising Market

NEW YORK, Playboy Enterprises, Inc.com , we see significant opportunities for cross
promotion and bundling between our Cyber Club and digital Playboy.com .
The digital edition will premiere on September 13, the same date that the
print edition is available on newsstands in every market around the country. Ebadi
and other affected writers . (AAP) publish the vast
majority of materials used in the U.

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com, a leading men's lifestyle and entertainment Web site. Shirin Ebadi, the
Iranian activist and Nobelist who had filed a companion suit in
October 2004, has been able to dismiss her action against the
government, confident that an American audience will be able to read
her memoirs.

Academic and research resources for English Literature from Anglo -Saxon to Contemporary times.

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The parties' joint lawsuit and the resulting changes in the
regulations have considerably improved the climate for publishers and
the reading public, but concerns remain .

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Hefner. From the
company's perspective, digital Playboy will be a much more cost-effective way
to distribute our content and count toward ABC rate base. Digital copies will be received by
subscribers automatically each month and can be read online or offline. Kauffman, President and CEO of Zinio.aaupnet .

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"The preeminence of Playboy's brand makes this a big moment for digital
delivery," said Scott L.
Playboy Enterprises is a brand-driven, international multimedia
entertainment company that publishes editions of Playboy magazine around the
world; operates Playboy and Spice television networks and distributes
programming via home video and DVD globally; licenses the Playboy and Spice
trademarks internationally for a range of consumer products and services; and
operates Playboy.org) members are
a major voice of the national and international literary community.

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pen.

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