INTERACTIVE MOTORSPORTS’ REVISED BUSINESS MODEL PRODUCES QUARTERLY PROFIT

INDIANAPOLIS (November 16, 2004) – Interactive Motorsports and Entertainment Corporation (OTCBB:IMTS) yesterday reported a profit for the three months ending September 30, 2004, evidencing the success of its recently revised business model. “The fundamentals are now on track and producing a path of profitability,” commented Interactive Motorsports’ Chairman and CEO William R. Donaldson. “With a profitable quarter reported, a strong asset base, new simulators in production and the pipeline of demand building for our patented race car simulators, it’s easy for management to be optimistic about the future of this young company,”.

For the three months ending September 30, 2004, the company reported a profit of approximately $8000 on revenues of approximately $1.6 million (EBITDA of $229,439) as compared to a loss of approximately $486,000 on sales of approximately $1.775 million (EBITDA of a negative $357,097) for the same period a year ago.

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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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