RACE CAR SIMULATORS AND
BALDACCI SIGN AGREEMENT
TO DEVELOP INTERNATIONAL
MARKETS FOR THE NEW GENERATION RACE SIMULATORS

INDIANAPOLIS (August 14, 2003) - Race Car Simulators, Inc., a subsidiary of Interactive Motorsports and Entertainment Corporation (OTCBB Symbol: IMTS), and international amusement industry veteran, Alain Baldacci, have signed an agreement to develop markets around the world for the Indianapolis-based company's new generation of racing simulator products.

Baldacci, an amusement park operator based in Brazil, started in the amusement industry in 1980, developing a new concept of indoor amusement parks for shopping malls. He is the founder of Interplay Parks and is always searching for new concepts and technology for the Amusement Park and Entertainment Industry. Baldacci was responsible for the implementation of Wet n' Wild waterparks in Brazil, as well as go-kart operations and the largest indoor amusement facility in the country.

Baldacci has also twice chaired the World Council and chaired the Board of Directors of IAAPA (International Association of Amusement Parks and Attractions) and the World Waterpark Association, from whom he won four special awards over 17 years of continued participation. He also founded and was President of ADIBRA (Brazilian Association of Parks) and was instrumental in founding the AMAP and ALAP, Mexican and Latin American associations. He has been appointed as a member of Brazil's National Tourism Board, representing the theme parks and entertainment industry. The Tourism Board, created by the first-ever Brazilian Tourism Minister, has the task to set up policies to foster the development of tourism in the country.

"I'm excited about the NASCAR type simulators that replicate racing on famous race circuits such as Indianapolis", Baldacci says. "This wonderful product, containing state-of-the-art simulation technology, will provide me with the opportunity to expand the company's business, either by myself or through revenue share agreements, with partners from the industry worldwide". He intends to match the quality of the product with his long time industry experience and knowledge and to introduce the major players in different areas of the world, to this exciting concept, which he expects will develop a new and profitable attraction for their markets.

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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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