InPlay Technologies® (NASDAQ: NPLA), a developer and marketer of innovative, emerging technologies, today announced that it has negotiated and is awaiting final bankruptcy court approval of a proposed settlement agreement with Delphi Corp. in which Delphi will allow a pre-petition general unsecured claim against Delphi Automotive Systems LLC in the amount of $7.5 million.

Notification of the proposed settlement has been given to interested parties pursuant to Delphi's bankruptcy settlement procedures order, who have ten business days to object or request additional information. If there are no objections, the stipulation would then be presented to the court for approval.

InPlay's claim stems from an agreement signed between Duraswitch and Delphi in 2000. Delphi paid a non-refundable payment of $4 million and committed $12 million minimum royalties to Duraswitch through 2007 for exclusive rights to use Duraswitch technologies in the automotive industry. Delphi had paid $3 million of that $12 million commitment to InPlay, with an additional $3 million due in July 2006 and $6 million in July 2007. As part of its bankruptcy filing in October 2005, Delphi filed a motion requesting that this agreement be cancelled under bankruptcy law. InPlay agreed to the cancellation, but retained the right to claim damages. InPlay subsequently filed a claim for the remaining $9 million in minimum royalties.

About InPlay Technologies

InPlay Technologies develops, markets and licenses proprietary emerging technologies. Working with its licensees and OEM customers, InPlay offers technology solutions that enable innovative designs and improved functionality for electronic products. The company's MagicPoint® technology is the only digital-based pen-input solution for the rapidly growing tablet PC and mobile computing markets. Its Duraswitch® brand of electronic switch technologies couples the friendly tactile feedback of mechanical pushbuttons and rotary dials with the highly reliable, thin profile of membrane switches, making it ideal in a wide range of commercial and industrial applications. InPlay is focused on further commercializing these technologies and seeking additional innovative technologies to enhance its portfolio. Visit www.inplaytechnologies.com for more information.

This news release contains certain ?forward-looking statements? within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements regarding our ability to bring resolution to the claim. Risks and uncertainties that could cause results to differ materially from those projected include objections raised by notification parties that could change the outcome or timing of the settlement agreement and other uncertainties described from time to time in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB for the year ended December 31, 2005 as filed with the Securities and Exchange Commission on March 17, 2006. These forward-looking statements represent our beliefs as of the date of this press release and we disclaim any intent or obligation to update these forward-looking statements.