Penthouse International, Inc. Subsidiary Engages Architectural and Engineering Firm for Master Planned Resort Development in Zihuatanejo-Ixtapa Mexico.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 22, 2004

Del Sol Investments LLC ("Del Sol") announced today the engagement of the engineering firm, Ulate, in connection with the development of the real property owned by Penthouse International, Inc. (OTCBB:PHSL) through its Del Sol subsidiary.

Del Sol owns 370 acres of real property in Zihuatanejo-Ixtapa on the Mexican Riviera. The Company is developing exclusive membership-based resorts. The Company's development plans also include fractional ownership vacation homes to address current market demand for flexible ownership of vacation property.

Ulate is a leading engineering and development company in Latin America. Ulate specializes in large scale resort developments, master planned communities and urban city planning. Ulate has been engaged by both the private and public sectors, including an engagement to create the City Plan for Guadalajara, a city of eight million people. The firm has completed large private sector projects in several dozen cities including, Ensenada, San Felipe, Mazatalan and Ixtapa, where the Marina Ixtapa was developed with golf, marina, commercial infrastructure and ocean front lots.

"With no existing debt, Del Sol has a unique opportunity to use its real estate assets to finance growth and diversification of the company," said Claude Bertin, executive vice president.

Penthouse is negotiating with several US resort operators to also anchor the property. Del Sol is prepared to contribute a portion of its beachfront real property as a building site in exchange for third party developers contributing the construction capital and expertise.

Estimates of the Company's engineers indicate that the 370 acre site should accommodate at least two beachfront hotel resort complexes, one 18-hole championship golf course and 2,500 residential units.

Penthouse International is diversifying entertainment options available to its customers through the development of its real property. The Company is also negotiating other acquisition of media and entertainment assets, including certain profitable website properties.

About Penthouse International, Inc.

Penthouse International, Inc (OTCBB:PHSL.OB), and its subsidiaries, including General Media, Inc., comprise a brand-driven global entertainment business founded in 1965 by Robert C. Guccione. General Media's flagship PENTHOUSE brand is one of the most recognized consumer brands in the world and is widely identified with premium entertainment for adult audiences.

The Penthouse trademarks are licensed by General Media to third parties worldwide in exchange for recurring royalty payments. The Company caters to men's interests through various trademarked publications, movies, the Internet, location-based live entertainment clubs and consumer product licenses.

Safe Harbor 

This release contains statements relating to future results of the Company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the availability of DIP financing for the General Media subsidiary, the impact that public disclosures of the Company's liquidity situation and Chapter 11 filing may have on the Company's businesses, the fact that no assurances can be given that the General Media Plan of Reorganization will enhance the Company's competitive position or ensure the continued publication of Penthouse magazine for many years, as well as other risks and uncertainties detailed from time to time in the filings of the Company with the Securities and Exchange Commission. On August 12, 2003, General Media and its direct and indirect subsidiaries filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York. Penthouse International, Inc. owns 99.5% of the capital stock of General Media. The Registrant did not file for protection under the Bankruptcy Code and its activities are not subject to Bankruptcy Court supervision. On December 22, 2003, the Debtors filed their Joint Plan of Reorganization and the disclosure statement with respect to the Plan (as such Disclosure Statement may be amended). If the Plan is confirmed pursuant to its current terms, no distribution on account of equity is proposed under its terms. For additional information, Reference is made to publicly available documents filed with the bankruptcy court to determine the most current status of all matters related to the bankruptcy case of General Media.