SOURCE: Interactive Motorsports and Entertainment Corp.

November 20, 2007 10:00 ET

Interactive Motorsports Announces Quarterly Profit, Year-to-Date Positive Operating Profit and EBITDA

Leading Manufacturer of Race Car Simulators Reports 3Q Revenues up 15%

INDIANAPOLIS, IN--(Marketwire - November 20, 2007) - Interactive Motorsports and Entertainment Corporation (OTCBB: IMTS), a leading producer of race car simulators, today announced earnings for the third quarter ending September 30, 2007, including increased revenues and a profit for the quarter, and positive operating profit and EBITDA for the year-to-date.

Revenues for the three months ending September 30 were $1,057,000, up from $921,000 in the third quarter of 2006, an increase of 15% year over year. Net profit for the period was $39,000 compared to a net loss of $318,000 during the same period in 2006. Operating profit was $211,000 compared to an operating loss of $166,000 one year ago. Adding back depreciation, interest and amortization to the operating profit, the EBITDA for the third quarter of 2007 was a positive $286,000.

Revenues for the nine months ending September 30 were $3,321,000, down from $3,599,000 in the same period in 2006. Net loss for the period was $390,000 compared to a net loss of $604,000 during the same period in 2006. Operating profit for the period was $71,000 compared to an operating loss of $203,000 one year ago. Adding back depreciation, interest and amortization to the operating profit, the EBITDA for the nine months ending September 30 was a positive $294,000.

"With this quarter's financials, the Company is reporting a year-to-date operating profit and positive EBITDA, and we have a full schedule of installations planned for the balance of the year," said Interactive Chairman and CEO William R. Donaldson.

"We look forward to the upcoming test installation in the Carnival Triumph cruise ship, and also to the results from recent installations in a sports bar, another bowling center and our initial installations in Incredible Pizza family entertainment centers in the southwest. Our engineers are busy with the interface of the software recently licensed from iRacing.com that is expected to allow for more tracks and for the multi-site virtual league play opportunity."

For additional information regarding the company and financials for third quarter of 2007, see the Form 10-QSB filed with the Securities and Exchange Commission on November 19. For more information on IMTS, visit www.SMSonline.com.

About Interactive Motorsports and Entertainment Corporation

Interactive Motorsports and Entertainment Corp., an Indiana corporation, through its wholly owned subsidiary, Perfect Line, Inc., is a world leader in race simulation. The company is in the business of manufacturing and then selling, revenue sharing or leasing race car simulators to contracted parties in malls, amusement parks, family entertainment centers, casinos and auto malls. The company also contracts race simulator experiences for trade shows and mobile fan interactive experiences. Under team and track licenses from America's fastest growing sport, NASCAR, simulator customers experience driving in a NASCAR race car that simulates the motion, sights and sounds of an actual NASCAR event. For investor relations information on IMTS, call (317) 295-3500, ext. 102, e-mail InvestorRelations@SMSonline.com or visit http://www.SMSonline.com/company/inv_rel_index.asp.

Forward-looking statements

Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, and the business prospects of Interactive Motorsports and Entertainment Corporation, are subject to a number of risks and uncertainties that may cause the Company's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, the outlook of the economy and the effect on future revenues, access to and cost of capital, uncertainty of new product development, competition, and dependence on updated technology and licenses and leases.

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