IMTS Forms New Race Car Simulators Subsidiary

IMTS FORMS NEW SUBSIDIARY FOR MANUFACTURING AND
SALES OF RACE CAR SIMULATORS


INDIANAPOLIS (August 12, 2003) – Interactive Motorsports & Entertainment 
Corporation (OTCBB:IMTS) today announced that it has formed a new subsidiary 
that will deal in manufacturing and sales of auto racing simulators.  The 
announcement comes in response to the increased interest in the company’s 
full motion racing simulators for both the domestic and international 
markets.
	Race Car Simulators, Inc. is a wholly-owned subsidiary of IMTS, according 
to an announcement made by William R. Donaldson, Chairman and CEO of IMTS.
	Donaldson also announced the appointment of Richard J. Wheeler as Director 
of Sales.  Wheeler, 55, has 23 years of experience in amusement sales and 
multi-unit operations in the amusement and restaurant industries. He comes 
to Race Car Simulators from Illusion, Inc., where he was Director of Sales 
and Marketing. He was formerly a regional vice-president for the Malibu 
Grand Prix Corporation. He holds a Psychology degree from the University of 
Connecticut.

-30-

For more information on IMTS, visit 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 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.

Contact: Steve Wagoner, InvestorRelations@SMSonline.com (800) 766-2782

Investor Relations on the web: 
http://www.SMSonline.com/company/inv_rel_index.asp

_________________________________________________________________
MSN 8 with e-mail virus protection service: 2 months FREE*  
http://join.msn.com/?page=features/virus