CARY AGAJANIAN NAMED TO INTERACTIVE MOTORSPORTS AND ENTERTAINMENT CORP. BOARD OF DIRECTORS

INDIANAPOLIS, IN (October 8, 2002) - William R. Donaldson, Chairman and CEO of Interactive Motorsports and Entertainment Corp. (OTCBB:IMTS), today announced that Cary Agajanian 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.

Agajanian, who lives in the Los Angeles area, literally grew up in the sport of auto racing, with his family running racing teams and race tracks. He now owns Motorsports Management International, a multi-faceted company that is an industry leader in the areas of event representation, corporate consulting and sponsorship negotiation. For the past 10 years, Agajanian has served on motorsports boards such as the Automobile Competition Committee of the United States (ACCUS), the American Motorcyclist Association (AMA, Vice-Chairman) and United States Auto Club (USAC) Properties. Agajanian's company has been involved in securing hundreds of sponsorship arrangements and is the only company in the United States to offer star racing drivers premium representation services in corporate structures, pension benefits, trusts and estates and contract negotiation. NASCAR Winston Cup star Tony Stewart has been represented by Motorsports Management International, and Agajanian also previously represented Jeff Gordon.

The company's car ownership division has entered cars in the Indianapolis 500 for 36 consecutive years and now owns one of the premier teams in the NASCAR Busch Series.

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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