SOURCE: Interactive Motorsports and Entertainment Corp.

March 28, 2007 12:13 ET

Interactive Motorsports' 2006 Revenue Up 11% to $5.4 M; Company Generates Positive EBITDA of $438,000

INDIANAPOLIS, IN -- (MARKET WIRE) -- March 28, 2007 -- Interactive Motorsports and Entertainment Corporation (OTCBB: IMTS) announced today that revenue for the year ended December 31, 2006 increased 11% or $512,000 to $5.4 million compared with $4.8 million in fiscal 2005.

In 2006 the company's operating loss improved 93% from the previous year to $42,000. Net loss in fiscal 2006 was $598,000, an improvement of 45% compared to net loss of $1 million in fiscal 2005. Adding back depreciation, interest and amortization to the operating loss, in fiscal 2006 the company generated a first-ever annual positive EBITDA of $438,000.

Chairman and CEO of Interactive Motorsports and Entertainment, William R. Donaldson, said, "Our year end financials and positive EBITDA demonstrate the progress being made under our aggressive revised business model. The 2007 season for the NASCAR NEXTEL Cup Series is underway, and our patented motion-based race car simulators are drawing large crowds at the Sprint Nextel and Toyota fan exhibits at race events. We are encouraged by the prospects ahead in 2007."

For additional information regarding the company and the 2006 financials, see the Form 10-KSB filed with the Securities and Exchange Commission on this date. 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 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 (800) 766-2782, 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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