FRED TREADWAY NAMED TO INTERACTIVE MOTORSPORTS AND ENTERTAINMENT CORP. BOARD OF DIRECTORS

INDIANAPOLIS, IN (October 1, 2002) - William R. Donaldson, Chairman and CEO of Interactive Motorsports and Entertainment Corp. (OTCBB:IMTS), today announced that Fred Treadway has been named to the corporation's Board of Directors. Perfect Line, Inc., a wholly-owned subsidiary of IMTS, owns and operates the unique NASCAR Silicon Motor Speedway mall-based racing centers.

Treadway, a former recipient of Indiana's "Entrepreneur of the Year" award, was instrumental in the early development of the asbestos abatement industry in the 1970s before he founded Specialty Systems, Inc. (SSI) in 1977. SSI is an Indianapolis-based multidisciplinary environmental management company that provides a broad range of services in the hazardous remediation industry. Today, SSI is recognized as a world leader in the environmental industry and employs more than 600 people in four states.

In 1986, Treadway founded American Safety Insurance Group Ltd. (NYSE: ASI), a casualty insurance company specializing in environmental risks. He serves as the Chairman of the Board of American Safety. Treadway also owns an Indy Racing League (IRL) team that won the legendary Indianapolis 500 race in 1997.

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. NASCAR racing is considered the number one spectator sport in America, with an estimated 75 million fans and over $1 billion in NASCAR branded retail merchandise sales.

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For more information on IMTS, please visit our web site at www.SMSonline.com.

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 & 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 for 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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