IMTS Subsidiary Partners With Elan Motorsports Technologies

IMTS Subsidiary Partners With Elan Motorsports
To Produce Next Generation Simulators

INDIANAPOLIS (December 18, 2003) - Race Car Simulators™, a wholly-owned subsidiary of Interactive Motorsports and Entertainment Corporation (OTC BB: IMTS), has partnered with one of the premier race car manufacturers in the world, Elan Motorsports Technologies (EMT), to produce and assemble the company's patented next generation auto racing simulators.

The next generation simulators include new state-of-the-art design upgrades featuring the latest image generators and projectors, upgraded video cards and a software upgrade to the Linux operating system. In addition, the upgrades will streamline operations with fewer computers required for each simulator, resulting in cost reductions for the company.
"These improvements will bring the Company's already market-leading technology to a new level of simulated racing excitement," stated William R. Donaldson, Chairman and CEO of IMTS. "With the excitement and results generated by our recent exhibit at the International Association of Amusement Parks and Attractions (IAAPA) convention in Orlando, we feel very confident that we will keep Elan busy for the foreseeable future," added Donaldson.

EMT, located in Braselton, GA, is a multi-faceted engineering and manufacturing company that, among other endeavors, designs and builds race cars. EMT subsidiary, Panoz G-Force, designed and built the winning chassis for the 2003 Indianapolis 500 and 2003 Indy Racing League, and other EMT subsidiaries are currently building the next-generation car for the Star Mazda Series and the new STRANA Super Truck.

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.