Conspiracy Entertainment Holdings Inc. ("Conspiracy") (BULLETIN BOARD: CPYE) , a developer, publisher and marketer of interactive entertainment software in North America and Western Europe, announced today that it has a publishing deal with Engine Software, a game developer based in the Netherlands, regarding the release of its "StateShift(TM)" video game title in the American territories, including North and South America, and Mexico.

StateShift(TM), an original sci-fi racing title made for a popular handheld gaming device set in the not-too-distant future, focuses on illegal racing competitions around future Earth where economical instability, and depletion of resources has led to a series of bloody conflicts. StateShift(TM) boasts various single player modes including an expansive Career Mode, and adrenalin-pumping WiFi multiplayer mode.

Marco Husges, Executive Vice President of Conspiracy, said, "StateShift merges multiplayer, handheld interactivity with futuristic auto racing. This winning combination appeals to a broad audience from racing enthusiasts to amateur players, and we anticipate its release will be well-received in the Americas."

Ivo Wubbels, CEO at Engine Software said, "We are absolutely delighted to have concluded this publishing deal with a solid partner like Conspiracy Entertainment. After Stateshift’s initial release in the European territories, we have been looking for a partner in the American territories, and we are happy to have found one that has been so forthcoming and flexible as Conspiracy. We are confident our game will appeal to the American market, and we are looking forward to its release."

"Handheld video games are becoming immensely popular in the $7.4 billion U.S. computer and video game software market. In 2006, $1.7 billion was spent on handheld game software. Through our agreement with Engine Software, we are positioned to continue to capitalize on attractive consumer trends. We anticipate to begin generating sales from StateShift in the first quarter of 2008," said Keith Tanaka, CFO of Conspiracy Entertainment.

Engine Software and Conspiracy will be releasing further information, including news and media, in the future. A release date and price point have not yet been confirmed. Engine Software will also be looking to establish further partnerships for the Asian markets over the coming months.