Interactive Motorsports' Subsidiary Files for Reorganization

   Interactive Motorsports and Entertainment Corporation (PINKSHEETS: IMTS) announced today that its wholly owned and primary operating company, Perfect Line, Inc., has filed for Chapter 11 bankruptcy protection. The company intends to present a plan of reorganization in the months ahead.

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.

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