Stamford Conn. June 28 2001 – WWE Entertainment Inc. (NYSE: WWE) today announced its financial results for the fourth quarter ended April 30 2001. Revenues from continuing operations were $131.1 million an increase of 13% compared to the same period last year. Earnings before interest taxes depreciation amortization and non-cash charges (EBITDA) increased 27% to $26.1 million as compared to $20.5 million in the fourth quarter of the prior fiscal year. Earnings per share from continuing operations were $0.23 for the quarter an improvement over the corresponding period last year.

"We are pleased to report another record quarter and record year for the Company and the momentum we have built thus far to which we will add the WCW brand " said Linda E. McMahon Chief Executive Officer. "We will add to our compelling programming new and expanded story lines create new characters and introduce new talent pools to further penetrate domestic and international markets " added Mrs. McMahon.

"Our recent foray into new television programming with the premiere of WWE Tough Enough a joint collaboration with MTV is indicative of the expertise that enables us to develop successful new programs. We have also ventured into feature length films. Recently one of our superstars The Rock appeared as a supporting character in the hit movie The Mummy Returns. The Rock is currently filming The Scorpion King which is the prequel to this film series and is starring in the title role. WWE has an active role in the production and creative process of the movie. These types of ventures create new revenue streams that further support our top line growth " concluded Mrs. McMahon.

Quarterly Results by Business Segment

Live and Televised

• Revenues increased 14% to $99.3 million compared to the same period last year primarily due to increases in television rights fees and live events.

• Revenues from live events increased 29% to $25.9 million. Attendance grew by 6% to roughly 695 000. This includes the record breaking WrestleMania® X -Seven event in April with over 67 900 in attendance. Average ticket prices for the quarter increased 17% to slightly more than $34.00.

• Pay-per-view revenues for the quarter were approximately $39.3 million slightly above the same period last year. Both quarters generated record setting revenues for the Company.

• Revenues from Television Rights Fees more than tripled to $12.1 million during the quarter reflecting the benefits from our new agreement with Viacom as well as our new and renewed agreements with our international distributors.

• On a comparative basis advertising revenues declined approximately $2.4 million substantially due to a special promotion and sponsorship in the fourth quarter of fiscal 2000. With fluctuating ratings the Company has continued to sell its commercial inventory at the same rates and sell through as the year ago quarter attracting significant advertisers who seek our demographics.

Branded Merchandise

• Revenues of branded merchandise were $31.8 million or 9% higher than the same period last year due primarily to the newly created revenues of WWE New York as well as an increase in Publishing revenues.

• Publishing revenues grew 42% to approximately $5.6 million resulting from an increase in the price of WWE Magazine and the publication of two special issues.

• WWE New York achieved $4.4 million in revenue for the fourth quarter.

• Merchandise revenues increased 12% to $6.8 million due to higher per capita sales of merchandise and the increased attendance at our live events.

• Shopzone.com revenues increased 27% which were more than offset by a reduction in the sale of Internet ad sales. Overall New Media revenues decreased 25%.

• Licensing revenues decreased by 16% to $7.5 million. The entire $1.4 million reduction is attributable to a decline in video game sales as the market anticipates the introduction of new platforms expected in the upcoming holiday season.

• SmackDown! Records contributed to the increase in revenues due to the successful release of WWE – The Music Volume 5 in February.

Profit Contribution

• Total profit contribution increased 24% in the 4th fiscal quarter to $56.0 million from $45.3 million in the same period last year.

• Total profit contribution margin was 43% compared to 39% in the same period last year.

• The growth in profit contribution resulted from a 30% increase in the Live and Televised business segment due to the impact of the increase in television rights fees.

• Live and Televised profit contribution margin increased to 45% from 39% due to increases in pay-per-view and television rights fees margins.

• Profit contribution in the Branded Merchandise businesses increased 4% while margins decreased by 2% to 36% primarily as a result of the mix of the related revenues.

Selling General & Administrative Expenses
SG&A expenses increased 20% to $29.9 million principally due to increases in legal and consulting fees and the expanded overhead related to WWE New York.

Fiscal Year 2001 Results

Revenues increased approximately 20% to $456.0 million compared to $379.3 million last year as Live and Televised revenues were up 27% and Branded Merchandise revenues increased 6%.

The key drivers of the business remain strong:

• Approximately 2.5 million people attended our live events in each of the last two fiscal years.

• Domestic pay-per-view buys grew at double-digit rates increasing to 8.0 million buys from 6.9 million buys.

• Raw is War remains the top rated show on cable and posted average ratings of 5.5 for the year. WWE SmackDown! remains the number one rated show on UPN with average ratings of 4.6 for the year.

Live and Televised

• Live and Televised revenues increased 27% to $335.6 million.

• Revenues from live events increased 19% driven by an increase in average ticket prices. The average ticket price for the year was approximately $33.00.

• Pay-per-view revenues increased 21% for the year.

• Television rights fees increased 190% reflecting the benefits of our new agreements with Viacom and other international partners.

• Total advertising revenues increased 16% due to a full year of revenues for WWE SmackDown!.

Branded Merchandise

• Revenues increased 6% to approximately $120.4 million.

• Increases in Publishing New Media and Merchandise together with the addition of WWE New York were partially offset by declines in Home Video and Licensing.

• During the year the Company expanded its book publishing licensing program in conjunction with Regan Books an imprint of Harper Collins. The Company broadened into literary genres beyond autobiographies including children’s books cookbooks and historical anthologies. In connection with this expansion the Company recorded $4.0 million in book licensing revenues which represented a 112% increase over the prior year.

Selling General and Administrative Expenses
SG&A increased to $105.0 million from $71.5 million as the Company continued to invest in infrastructure and incurred significant legal and professional fees. This amount reflects the settlement of certain litigation.

EBITDA
EBITDA increased 15% to $99.9 million excluding the impact of certain litigation.

Discontinued Operations
As previously announced the Company decided to discontinue the operations of the XFL. The Company determined that the additional investment required was not commensurate with the potential return and the risk inherent in continuing the venture.

For the year total losses attributed to the XFL were $46.9 million of which $10.7 million represented non-cash charges in connection with the sale of the Company’s Class A common stock to NBC. On an after tax cash basis the Company incurred $36.2 million in losses.

Guidance for Fiscal Year 2002

As part of its ongoing business operations the Company has provided the following guidance for fiscal year 2002 subject to various risks and uncertainties:

• Revenues are expected to grow 8% to 10% annually with the Live and Televised segment representing approximately 75% of total revenues for the year. It is anticipated that quarterly sales patterns will be consistent with the prior fiscal year.

• Attendance is anticipated to reach approximately 3.0 million and the average ticket price will be approximately $32.00. This reflects the inclusion of live events associated with WCW.

• The Company is conservatively estimating 8.0 million domestic pay-per-view buys for the year. We anticipate 35% to 40% of these buys will be achieved in the first 6 months of the year. Included in the estimates for fiscal year 2002 are approximately 400 000 out of period buys. Total out of period buys were 1.2 million for fiscal year 2001.

• Estimated advertising revenues for fiscal year 2002 assume average ratings consistent with those achieved in fiscal 2001. As a result we expect corresponding advertising revenues to remain unchanged. These estimates are reflective of a stabilizing advertising market.

• The Company expects annual television rights fees from its domestic and international distribution contracts to be approximately $50 million for the year.

• Branded Merchandise revenues are anticipated to grow 15% with the largest contributors being WWE New York which is expected to grow 30% to $22 million and Home Video which is expected to grow 80% approaching $22 million.

• The Company expects its profit contribution margins in its reportable segments to be in the range of 40% to 42% of revenues.

• SG&A expenses are expected to be 21% of sales representing the added cost of advertising promotional expenses key initiatives related to new branding efforts and infrastructure costs.

• Depreciation and amortization is expected to be approximately $11 million for the year.

• Interest income net of interest expense is expected to be approximately $14 million in 2002.

• The effective tax rate is expected to be 38.5% for the year.

Forward-Looking Statements: This news release contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995 which are subject to various risks and uncertainties. These risks and uncertainties include the conditions of the markets for live events broadcast television cable television pay-per-view Internet food and beverage entertainment professional sports and licensed merchandise; acceptance of the Company’s brands media and merchandise within those markets; uncertainties relating to litigation and other risks and factors set forth from time to time in Company filings with the Securities and Exchange Commission. Actual results could differ materially from those currently expected or anticipated.

Contacts:

Investors: Thomas Gibbons Vice President Investor Relations WWE Entertainment Inc.
(203) 328-2576

Media: Judd Everhart Director Corporate Communications WWE Entertainment Inc.
(203) 406-3620.