WORLDS.COM REPORTS YEAR-END REVENUES
Fourth Quarter Revenues Exceed Total Revenue
First Nine Months of 1999 Combined
New York, NY, March 15, 2000 - Worlds.com (OTC/BB: WDDD), the leading three-dimensional (3D) entertainment portal, today announced that revenues for 1999 were up significantly from the previous year and revenue in the fourth quarter of 1999 exceeded revenues reported for the first nine months of 1999 combined.
Worlds.com reported that revenues for the year ending December 31, 1999 were $507,499 versus $29,110 for the year ending December 31, 1998, an increase of 1,643 percent. The Company lost $3,339,500 for the year, or $0.19 per share, compared to a loss of $2,648,681 (which included an extraordinary gain of $810,140), or $0.15 per share, in 1998.
For the fourth quarter of 1999, revenue for Worlds.com was $265,892 compared to $12,978 in the comparable quarter in 1998. Loss for the quarter was $495,414, or $0.03 per share, for 1999 compared to a gain of $60,118, resulting from the reversal of certain predecessor liabilities ($810,140) in 1998.
"Our revenue growth was significant and is continuing," said Steven G. Chrust, chairman of Worlds.com. "Our revenues are derived from three distinct areas: advertising, membership and e-commerce. All three areas showed significant increases for year-to-year comparisons, and most strongly for the fourth quarter 1999.
"The fact is that our revenue in the fourth quarter of 1999 exceeded our combined revenue for the first three quarters of the year," he said. "As we begin to roll out our global 3D entertainment portal, implement more agreements, add new VIP subscribers, and sell more advertising and merchandise, significant revenue growth will continue."
Chrust attributed revenue growth to new agreements implemented during 1999 with Freeserve, an ISP in the United Kingdom; Time-Warner's Road Runner, a high speed cable modem website in the U.S, as well as increased usage and membership of its own 3D entertainment portal and 33 e-commerce sites. Agreements with e-NewMedia (an ISP in the Asia Pacific Region), Shinwon Telecom (an ISP in Korea), and UK-based Powernet Telecom plc signed late in 1999 and early 2000 have not yet begun to generate operating revenue.
Chrust noted that these recent agreements (e-NewMedia, Shinwon and Powernet) are expected to become significant sources of revenue by the fourth quarter of 2000. The Company also announced plans to add four new e-commerce sites each quarter for the rest of 2000.
"In addition to our revenue growth, we significantly enhanced our management team in 1999," Chrust said, noting the hiring of Debra Sito as Senior Vice President of Business Development and Marketing, and Tom Saleh as Chief Technology Officer. "We have also added Hal Trencher as Vice President of Advertising and Marty Scott as Vice President of E-Commerce and Merchandise in the last month. As a result, we are well on our way to developing the infrastructure required to handle and promote rapid growth."
The Company will begin its first advertising program within the next 30 days to support its 3D entertainment portal. "We are on target to meet the goals that we have set for ourselves and continue our leadership position in the 3D market, building the next phase of the Internet," Chrust said.
Worlds.com, the Internet's original 3D entertainment portal, leverages its proprietary technology to offer visitors a network of virtual, multi-user environments that have rich media graphics, text chat, voice-to-voice chat, streaming video and e-commerce. The environments are focused around entertainment interests and targeted communities such as music, sports, and general entertainment environments. In the Worlds' Avatar Gallery, visitors select an avatar (3D character), and customize it into a personal virtual representation of themselves. The avatar is used to travel in and through the various virtual environments and participate in interactive activities involving entertainment, promotions, or e-commerce. Avatars can chat with one another, dance in a nightclub, e-shop, watch video clips and participate in other activities.
Worlds.com is headquartered in New York City. For more information on Worlds.com, please contact Andrew Silver &/or Rebecca Fitts, Middleberg & Associates, (212) 699-2589/2663, firstname.lastname@example.org / email@example.com.
Forward Looking Statements. Except for any historical information contained herein, the matters discussed in this news release contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These risks and uncertainties are described in the company's filings with the SEC. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.