EXHIBIT 99.1
iEntertainment Network Announces Restructuring In Drive Towards Sustained
Profitability
(Research Triangle Park Area, NC -- December 15, 2000) - iEntertainment Network,
Inc. (NASDAQ:IENT), an online media company providing evergreen entertainment
content across a wide network of owned and affiliated Internet properties, today
announced steps to refocus its resources on its established pay-for-play
division.
"The iEN board of directors has mandated an objective to deliver an operating
profit in all four quarters during calendar 2001. Given the track record of our
pay-for-play group and the scheduled introduction of exciting new releases in
2001, we have determined that the path to sustained profitability will require
keen focus in this area, said Mike Pearce, iEN CEO. "iEN plans also to continue
generating significant revenue from advertising-supported gaming environments.
We intend to participate in the overall recovery of online advertising markets,
which many industry analysts foresee occurring in the second half of 2001."
As a result of the increased focus on profitability and pay-for-play gaming
revenue, the company eliminated 33 positions, many of whom were assigned to
supporting the effort in advertising-related game environments. "It's
unfortunate that many good people are being released and through no fault of
their own," said Pearce. "Internet companies, particularly content-oriented dot
coms, are experiencing a very challenging marketplace. While not unexpected in a
maturing industry, it is nonetheless painful for those affected at scores of
Internet firms across the country."
Allan Kalbarczyk, company controller since its inception, has assumed
coordination of iEN financial activities. Prior to joining the company, he
served as Director of Corporate Accounting at publicly-held MicroProse
Corporation, a pioneer in interactive games. He takes over for Robert Hart, who
will remain a consultant to the company through March 2001. "Bob joined iEN as
part of the new senior management team in the early fall of 1999. In November of
1999, the company completed a successful recapitalization, which was followed by
release of the qualified opinion previously assigned to the company's financial
statements by its auditors. Revenue resumed a growth trajectory in Q1 of 2000
and iEN recorded an operating profit in Q2 of 2000. "Bob played an integral role
in repositioning the company as a viable participant in the online media space,"
stated Pearce. "I speak for everyone at iEN in wishing him well in his future
endeavors."
iEntertainment Network, Inc. (NASDAQ: IENT), founded in 1994 and located in
Research Triangle Park, NC, is a leading provider of online entertainment media
solutions, tools and content for ISP's portals, communities and e-commerce
sites. iEntertainment Network currently serves both English and Spanish language
audiences. The Company operates multiple online entertainment properties for key
partners including AT&T WorldNet (R) Service's GameHub.net
(http://www.gamehub.net), and EarthLink's Games Arena
(http://www.thegamesarena.com). iEntertainment Network has strategic
relationships with AT&T (NYSE: T), EarthLink (NASDAQ: ELNK), as well as other
content and service providers. For more information, call (919)-461-0722 or
visit our website at (http://www.ient.com). AT&T WorldNet is a registered
service mark of AT&T.
FORWARD-LOOKING STATEMENTS: EXCEPT FOR THE DESCRIPTIONS OF HISTORICAL FACTS
CONTAINED HEREIN, STATEMENTS IN THIS NEWS RELEASE CONCERNING FUTURE RESULTS,
PERFORMANCE OR EXPECTATIONS ARE FORWARD-LOOKING STATEMENTS, INCLUDING WITHOUT
LIMITATION, STATEMENTS ABOUT REVENUE GROWTH AND PROFITABILITY. ACTUAL RESULTS,
PERFORMANCE OR DEVELOPMENTS COULD DIFFER MATERIALLY FROM THOSE EXPRESSED OR
IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS AS A RESULT OF KNOWN OR UNKNOWN
RISKS, UNCERTAINTIES AND OTHER FACTORS INCLUDING THOSE DESCRIBED FROM TIME TO
TIME IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, UNDER
"RISK FACTORS" AND ELSEWHERE, INCLUDING RISKS RELATING TO HISTORY OF OPERATING
LOSSES, CHANGE IN BUSINESS, FAILING TO SECURE TIMELY OR ADEQUATE FINANCING,
DELAYS IN DEVELOPMENT AND INTRODUCTION OF NEW PRODUCTS, DEPENDENCE ON NEW
PRODUCT INTRODUCTIONS WHICH ACHIEVE SIGNIFICANT MARKET ACCEPTANCE AND THE
UNCERTAINTIES OF CONSUMER PREFERENCES, THE RATE AND DEGREE OF MARKET ACCEPTANCE
OF ONLINE GAMING, DEPENDENCE ON THIRD PARTY SOFTWARE DEVELOPERS FOR SIGNIFICANT
PORTION OF NEW PRODUCTS, RISKS OF RAPID TECHNOLOGICAL CHANGE AND PLATFORM
CHANGES, INTENSE COMPETITION, DEPENDENCE UPON THIRD PARTY DISTRIBUTION AND OTHER
RISKS. WE UNDERTAKE NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS AS A
RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, UNLESS REQUIRED BY LAW.
