August 17, 2006: Palladium Capital Advisors, LLC is pleased to announce that acted as sole placement agent in a transaction in which Conspiracy Entertainment (the “Company”) entered into a Second Amendment, Modification and Consent to Transaction Document Agreement. Pursuant to the Second Amendment Agreement, the Company sold an aggregate of $247,000 principal amount of 15% secured convertible notes (the “Notes”) and received $247,000 in payment for the sale of the Notes, less expenses of $4,000.