PET Capital Partners, LLC, Through Its Agent, Has the Right to Vote and Sell 10,500,000 Shares of the Series C Preferred Stock of Penthouse International, Inc. NEW YORK, Aug. 17 /PRNewswire/ -- PET Capital Partners LLC announced today that Marc H. Bell and Daniel C. Staton, members of NAFT Ventures I LLC, which is the Sole Member of PET Capital Partners LLC have filed a Schedule 13D with the Securities and Exchange Commission. Marc H. Bell and Daniel C. Staton (as members of NAFT Ventures I LLC), acting on behalf of PET Capital Partners LLC, entered into a pledge agreement, dated April 15, 2004, by which an agent of PET Capital, became the pledgee of 10,500,000 shares of the Series C Convertible Preferred Stock (the "Preferred Stock") of Penthouse International, Inc. ("PII") (OTC:PHSL.PK) pledged by the Molina-Vector Investment Trust, which is owned by Dr. Enrique Molina Galeana and is the principal shareholder of PII. The Preferred Stock is convertible into 954,545,454 shares of PII's Common Stock. Under the pledge agreement, the Molina-Vector Investment Trust unconditionally and irrevocably guarantees the obligations of Dr. Molina under certain promissory notes of Dr. Molina that are payable to the order of several obligees, including PET Capital. The pledge agreement provides that in the event of default by Dr. Molina on payment of his obligations under the notes, the pledgee, acting as agent for PET Capital, is entitled, upon providing the Molina-Vector Investment Trust and its counsel with no less than 10 days prior written notice, to dispose of any or all of the pledged securities. Additionally, upon an event of default, Pet Capital's agent has voting power with respect to the pledged Preferred Stock. Dr. Molina failed to make an interest payment on the notes that was due on June 30, 2004; as a result, a default occurred on July 6, 2004 (there was a 5-day grace period). As a result of the default and upon fulfilling the notice requirements, PET Capital's agent may sell the pledged Preferred Stock. This announcement does not constitute an offer to sell or a solicitation of offers to buy any security. This release contains statements relating to future results of the Company 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 various risks and uncertainties. DATASOURCE: PET Capital Partners LLC CONTACT: Rana Mitra of PET Capital Partners LLC, +1-561-988-1700

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