Stamford Conn. February 21 2002 – WWE Entertainment Inc. (NYSE:WWE) today announced financial results for its third fiscal quarter ended January 25 2002. Total revenues for the quarter were $100.2 million versus $111.2 million in the prior year’s quarter. Net income was $9.4 million compared to $11.7 million in the third quarter last year. Included in net income was the favorable impact of approximately $4.6 million related to the reversal of provisions which were no longer required and the recording of tax benefits both of which were associated with the discontinuance of the XFL. Net income also reflected the impact of lower interest and other income arising from a decrease in average interest rates as well as changes in the carrying values of warrants from certain of our licensing and television partners. Earnings per common share from continuing operations were $0.07 and earnings from discontinued operations were $0.06 per common share.

For the quarter earnings before interest taxes depreciation and amortization (EBITDA) were $11.3 million versus $22.7 million last year. The decline in EBITDA was due to lower revenues lower margins in branded merchandise businesses and increased selling general and administrative expenses.

"During the quarter we made significant progress on a number of key strategic fronts " said Linda E. McMahon Chief Executive Officer. "We increased the number of live events and introduced new talent. Both of these initiatives were well received by our fans. We are now playing markets that heretofore we could not visit given the size of our talent pool and logistical constraints on our television shoots. We are encouraged by the early signs of success as we lay the foundation to support the creation of multiple story lines and the introduction of new talent under the WWE umbrella " added Mrs. McMahon.

"The number of sellouts and the enthusiastic response by our fans clearly indicate that demand for additional live events exists in many more markets. Our goal is to establish competing brands and engage our business model to meet this demand. As part of our strategy we will introduce more live events and bring to market our branded merchandise. This will pave the way for additional pay-per-views and television programming opportunities. The combination of our inherent creativity and the depth of our talent roster has provided the momentum for a successful extension of our brands " added Mrs. McMahon.

"In the international arena we are moving forward with the first of our four tours in 2002. Our first event scheduled for March 1 2002 at the Yokohama Arena in Tokyo Japan is already sold out. The tour will continue on to Singapore and Malaysia which represent two strong television markets for us and are markets that we have not previously visited. In May we will move on to Europe where we have four live events scheduled. In August we will travel to Australia and in October we will return to Europe. We have also signed several licensing agreements in Europe and have opened our international office in the Hammersmith section of London. We are confident that we can fully monetize the potential that exists in international markets and the results thus far are very encouraging " concluded Mrs. McMahon.

Quarterly Results by Business Segment

Total revenues were $100.2 million compared to $111.2 million in the prior year quarter.

Live and Televised Entertainment
Total revenues for our Live and Televised businesses were $73.4 million for the quarter compared to $79.5 million in the prior year quarter.

• Live Event revenues – Live Event revenues were $15.3 million for the quarter.

• There were 61 events during the quarter versus 48 last year.

• Attendance was 446 600 compared to 512 800 in the third quarter last year.

• The average ticket price increased approximately 3% to $34.21.

• Pay-Per-View revenues – Pay-Per-View revenues for the quarter were $23.8 million.

• In period domestic pay-per-view buys for the quarter were 1.4 million as compared to 1.7 million last year.

• There were approximately 0.2 million out-of-period buys versus 0.1 million last year.

• DirecTV resumed the airing of WWE pay-per-views beginning with the No Way Out pay-per-view that aired on February 17 2002.

• Television Rights Fees revenues increased 14% to $13.0 million and were driven by our improved international and domestic agreements.

• Television Advertising revenues held up well in a depressed advertising market. Advertising revenues were $21.3 million for the quarter versus $22.4 million during the same period last year.

Branded Merchandise

Total revenues were $26.8 million for the quarter versus $31.7 million last year.

• Licensing revenues decreased 22% to $8.1 million primarily due to the timing of the introduction of new video game titles in the current quarter as compared to the same period last year. As the installed base for new game consoles (i.e. Xbox PlayStation 2 and Nintendo Gamecube) takes hold we expect to benefit given the demonstrated popularity of our video games.

• Merchandise revenues for the quarter were $7.0 million a decrease of 3% versus last year principally due to the decline in attendance. However per capita spending increased from $7.80 to approximately $8.15 for the current quarter.

• Publishing revenues decreased 10% to $4.2 million principally due to a decline in newsstand units sold.

• Home video revenues decreased 18% to $2.6 million due to lower sell through rates and the attendant increase in return reserves.

• New Media advertising revenues increased 20% during the quarter to $1.3 million.

• WWE New York revenues declined 15% to $3.9 million as the impact of the drop off in tourism in the Times Square area since September 11th 2001 continues to have a negative effect on revenues.

Profit Contribution
Total profit contribution for the quarter was $37.5 million as compared to $46.2 million last year. The decline in profit contribution was principally due to an $11.0 million decrease in revenues and the inclusion of additional inventory reserves recorded in the quarter. The total profit contribution margin was 37% for the quarter as compared to 42% last year.

The profit contribution margin for the Live and Televised businesses was approximately 40% versus 43% in the third quarter last year. The decrease in revenues due to lower pay-per-view buys accounted for the majority of the margin decline in this category.

The profit contribution margin for the Branded Merchandise businesses was 30% as compared to 37% during the same period last year due to the aforementioned reserves booked in the quarter.

Selling General and Administrative Expenses
Selling General and Administrative expenses for the quarter were $26.2 million as compared to $22.7 million last year. Increased advertising and promotion expenses legal fees overhead expenses at WWE New York and some staff-related expenses which included a $2.0 million charge for a reduction in the work force were partially offset by reductions in consulting fees and relocation and recruitment expenses.

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 SEC. Actual results could differ materially from those currently anticipated.

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

Media : Gary Davis Vice President Corporate Communications WWE Entertainment Inc.
(203) 353-5066