Penthouse Responds to Bell Group Misleading Press Release.

NEW YORK -- Penthouse International (Pink Sheets:PHSL), a diversified holding company with operating subsidiaries in adult entertainment, payment processing, Web-based software and real estate, and Dr. Luis Enrique Fernando Molina, Penthouse's major stockholder, responded today to a press release published yesterday afternoon by NAFT Ventures, LLC, Marc H. Bell, Daniel Staton on behalf of themselves and other holders of General Media securities.

In their press release, the members of Bell/Staton group indicated that they were in a position to control 10,500,000 shares of Penthouse Series C Preferred Stock, including the right to vote and to convert the shares into approximately 954 million shares of Penthouse common stock. According to a Penthouse spokesman and Dr. Molina, the Bell/Staton group press release is false and misleading in that it failed to disclose several material facts, including:

--The rights of the Bell/Staton group, if any, are subject to their having complied with their commitments and agreements under the contracts entered into in April 2004; which the Bell/Staton group breached on a number of occasions; and

--The Bell/Staton press release fails to disclose that, even if the Bell/Staton group complied with all of the terms of their commitments and agreements, Dr. Molina has an option exercisable at any time prior to November 6, 2004, to cancel his notes to the Bell/Staton group and receive back all of his Penthouse preferred stock for the payment of $2,000,000.

Penthouse and Dr. Molina also announced that they have commenced suit against the Bell/Staton group in the Supreme Court of the State of New York for breach of the April agreements, fraud, and other claims and are seeking damages in excess of $100,000,000 from the Bell/Staton group. In addition, Penthouse and Dr. Molina have advised that they intend to tender the $2,000,000 buy-back payment in escrow pending the outcome of their litigation against the Bell/Staton group to ensure that the Bell/Staton group can never gain beneficial ownership of Dr. Molina's Series C preferred stock.

Claude Bertin, Executive Vice President of Penthouse, stated: "One of the basic elements of the securities laws is that a person should not omit statements in a public disclosure that are material and the absence of which makes the statements contained in the disclosure misleading." Mr. Bertin further stated that: "This press release by the Bell/Staton group is another example of their underhanded efforts to sabotage Penthouse's attempts to confirm a plan of reorganization beneficial to the General Media creditors and Penthouse stockholders."

About Penthouse International, Inc.

Penthouse International, Inc., through its subsidiaries General Media, Inc., Del Sol Investments LLC and PH Realty Associates LLC and iBill, is 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. General Media caters to men's interests through various trademarked publications, movies, the Internet, location-based live entertainment clubs and consumer product licenses. Internet Billing Company (iBill) sells access to online services and other downloadable products (music, games, videos, personals, etc.) to consumers through proprietary Web-based payment applications. The iBill online payments systems manage transaction authorization on the global financial networks such as Visa(R) and MasterCard(R) and simultaneously provide password management controls for the life of the subscribing consumer. On-demand CRM (Customer Relationship Management) applications are provided to registered independent merchants, typically small and medium-sized businesses seeking a cost-effective technology platform to outsource non-core banking and finance functions. Since 1996, iBill has established a trusted brand with consumers and online businesses with 27 million customers in 38 countries.

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, 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 (the Debtors) 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. Penthouse did not file for protection under the Bankruptcy Code and its activities are not subject to Bankruptcy Court supervision. 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. The website of the Bankruptcy Court is www.nysb.uscourts.gov.