INDIANAPOLIS, IN (September 5, 2003) - William R. Donaldson, Chairman and CEO of Interactive Motorsports and Entertainment Corp. (OTCBB:IMTS) announced that the Company's wholly owned subsidiary, Perfect Line Inc., has entered into a revenue share agreement with Cannery Row Entertainment, Inc., a new venture owned by amusement industry veteran Peter Casas, to install its state-of-the-art racing simulators.

Casas is developing the Edgewater Packing Company, a nearly 100-year-old icon and historic building in the Cannery Row district of Monterey, one of the most popular tourist destinations in northern California. This amusement facility will feature four NASCAR Silicon Motor Speedway racing simulators, a restaurant, laser tag, climbing wall, mechanical bull, Old Tyme Photo Emporium, over 100 video games, plus the world famous "Carousel" which many people identify with this celebrated building. The location is adjacent to the Monterey Aquarium which draws approximately 2 million annual visitors.

"This revenue share location, the Company's fourth this year, is another example of the new direction we're taking in opening stores in conjunction with established businesses in high profile, heavily trafficked, tourist-based areas," stated Donaldson.

Perfect Line's NASCAR Silicon Motor Speedway racing centers are the largest chain of officially licensed, NASCAR-branded interactive entertainment stores in the world, and offers its customers the most popular NASCAR merchandise available. Perfect Line has integrated sophisticated proprietary racing simulator technology with an exclusive NASCAR license for location-based entertainment and licenses for popular NASCAR tracks and teams.

The National Association for Stock Car Auto Racing, NASCAR, is the sanctioning body for one of America's premier sports. With 75 million fans spread throughout the U.S. and ranking second among sports on television and third in licensed product sales, NASCAR has catapulted into the American mainstream. The Passion and brand loyalty of NASCAR fans have attracted many of the best-known brands in America: more Fortune 500 companies are involved in NASCAR than any other sport. Based in Daytona Beach, Fla, with offices in Charlotte, New York and Los Angeles, NASCAR sanctions 1,800 races at 120 tracks in 38 states.

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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 dependencies on updated technology and licenses and leases.

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