Stamford Conn. June 26 2002 – World Wrestling Entertainment Inc. (NYSE:WWF) today announced financial results for its fourth fiscal quarter ended April 30 2002. Total revenues for the quarter increased to $135.9 million from $131.1 million in the prior year’s quarter. Income from continuing operations was $16.0 million as compared to $17.0 million in the fourth quarter last year. Earnings per common share from continuing operations were $0.22 for the quarter.

Earnings before interest taxes depreciation and amortization (EBITDA) were $28.5 million versus $26.1 million last year. EBITDA included expenses of approximately $2.0 million associated with the Company’s name change to World Wrestling Entertainment Inc. Free cash flow (income from continuing operations plus depreciation and amortization less capital expenditures and payment of long-term debt) for the current quarter was $17.4 million as compared to $9.6 million in the prior year quarter.

"During the quarter we continued to make progress on the implementation of our brand extension and international expansion initiatives " said Linda E. McMahon Chief Executive Officer. "Our international tours in particular were well received by our fans in Asia and Europe where we performed to sell out crowds across both continents. We recently announced new licensing and sponsorship agreements in Europe Australia and New Zealand as we continue to replicate our successful domestic business model overseas " added Ms. McMahon.

Fourth Quarter Results

Total revenues increased 4% to $135.9 million compared to $131.1 million in the prior year quarter due to increased revenues in the Live and Televised Entertainment business segment.

Live and Televised Entertainment

Total revenues for our Live and Televised businesses for the quarter increased 6% to $105.0 million from $99.3 million in the same period last year.

• Live Event revenues increased 8% to $27.9 million in the current quarter.
• There were 78 events including 3 international events during the quarter. This compares to 59 events during the same period last year.
• Attendance for the quarter was approximately 693 300 which included attendance of 38 400 from our international live event tours. This compares to attendance of 695 400 in the prior year quarter.
• The Company enjoyed its highest grossing event WrestleMania X8 with attendance of 68 237. This event shattered attendance and box office records at Toronto’s Skydome.
• The average ticket price increased approximately 10% to $37.91.
• Pay-Per-View revenues for the quarter were $40.6 million as compared to $39.3 million in the prior year quarter.
• Domestic pay-per-view buys for the quarter were 2.4 million versus 2.3 million buys last year.
• Commencing with our April pay-per-view Backlash the price of our pay-per-view programs increased from $29.95 to $34.95.
• Our estimates for WrestleMania X8 pay-per-view buys are in line with last year’s record results of approximately 1.0 million buys.
• Television Rights Fees revenues increased 17% to $14.2 million due to the growth in international rights fees rights fees for our Tough Enough television series and other television specials.
• Television Advertising revenues were approximately $21.9 million and were essentially the same as compared to the prior year quarter.

Branded Merchandise

Total revenues decreased approximately 3% to $30.9 million for the quarter versus $31.8 million last year.

• Licensing revenues were $5.6 million as compared to $7.5 million in the prior year quarter. An increase in video game revenues was offset by lower revenues from sales of WWE book titles.
• Merchandise revenues were $8.8 million an increase of 3% versus last year. This was principally due to an increase in per capita spending from $9.09 to $9.47 in the current year quarter.
• Publishing revenues increased 5% to $5.9 million primarily due to the increase in the number of special magazine titles and increases in the cover price of Raw Magazine and the Divas 2002 magazine.
• Home video revenues increased to $4.9 million due to an 86% increase in the number of home video units sold. The number of titles sold in DVD format accounted for about 49% of total units sold versus approximately 13% in the prior year quarter.
• The World (formerly WWF New York) revenues declined 13% to $3.8 million. The Company has re-branded this venue and has expanded into new areas such as rock concerts and corporate hospitality events. In May Metropolitan Entertainment was contracted to be the exclusive producer of all concerts and comedy acts for The World.

Profit Contribution

Total profit contribution for the quarter was $59.5 million as compared to $55.7 million in the prior year quarter. Total profit contribution margin increased to 44% from 43%.

The profit contribution margin for the Live and Televised businesses was approximately 44% versus 45% in the fourth quarter last year.

The profit contribution margin for the Branded Merchandise businesses was 44% as compared to 35% during the same period last year. In the fourth quarter 2001 the Company recorded additional inventory and return reserves which impacted the margins in our Branded Merchandise business segment.

Selling General and Administrative Expenses

SG&A expenses for the quarter increased 5% to $31.1 million as compared to $29.6 million last year. The increase was primarily due to costs associated with the Company’s name change as well as increased expenses at The World. These increases were slightly offset by lower professional fees.

Fiscal Year Results

Total revenues were $425.0 million as compared to $456.0 million in the prior year.

Live and Televised Entertainment

Total revenues for our Live and Televised businesses were $323.5 million versus to $335.7 million in the prior year.

• Live Event revenues were $74.1 million as compared to $81.9 million in the prior year.
• There were 237 events during the year versus 212 last year.
• Annual attendance decreased 17% to approximately 2.0 million.
• Pay-Per-View revenues were $112.0 million as compared to $128.2 million last year.
• Domestic pay-per-view buys for the year were 7.1 million as compared to 8.0 million last year.
• Fiscal 2002 revenues were impacted by the loss of carriage from one of our satellite providers for four months of the year.
• Television Rights Fees revenues increased 52% to $53.3 million reflecting the full year impact of our agreement with Viacom improved international agreements and the addition of our Tough Enough television series and other television specials.
• Television Advertising revenues decreased 7% to $83.6 million.

Branded Merchandise

Total revenues were $101.5 million for the year versus $120.4 million last year.

• Licensing revenues were $23.0 million as compared to $31.6 million in the prior year primarily due to the impact of lower revenues from our video games and book publishing businesses.
• Merchandise revenues for the year were $26.2 million a decrease of 9% versus last year principally due to the decline in attendance. This was slightly offset by an increase in per capita spending to $8.47 from $8.29 for last year.
• Publishing revenues decreased 4% to $17.6 million primarily due to a decline in magazine circulation which was partially offset by the increase in the number of magazine specials and increases in the cover price for Raw Magazine and the Divas 2002 magazine.
• Home video revenues increased 12% to $13.6 million due to increased sales of DVD’s resulting from the increase in the number titles offered in DVD format in the current year. This was slightly offset by a decrease in VHS tape sales.
• New Media revenues decreased to $4.4 million as compared to $5.6 million in the prior year primarily due to reduced advertising revenues.
• The World revenues declined 15% to $14.1 million principally due to the slowdown in tourism in New York’s Times Square.

Profit Contribution

Total profit contribution for the year was $164.8 million as compared to $197.0 million last year. The profit contribution margin decreased to 39% from 43% last year.

The profit contribution margin for the Live and Televised businesses was approximately 40% versus 44% last year primarily due to the decline in our pay-per-view business.

The profit contribution margin for the Branded Merchandise businesses was 35% as compared to 41% in the prior year.

Selling General and Administrative Expenses

SG&A expenses increased to $109.6 million from $104.1 million last year. This increase was primarily due to increased advertising and promotion costs associated with our television programs and pay-per-views expenses associated with our name change and increased expenses at The World. Included in Fiscal 2001 SG&A expenses was a charge related to the settlement of an outstanding lawsuit.

Guidance for Fiscal Year 2003

As part of its ongoing business operations the Company has provided the following guidance for fiscal year 2003. This guidance is subject to various risks and uncertainties outlined in the forward-looking statement included in this release and other Security Exchange Commission filings of the Company. In addition to the information contained herein the Company has posted a detailed breakdown of its revenues by business segment on its business web site www.wwecorpbiz.com in an effort to provide additional useful information for public dissemination. This information will remain on the Company’s web site for a period of 10 days.

• Revenues are expected to grow 7% for the year. The Live and Televised segment will represent approximately 77% of total revenues for the year and Branded Merchandise will account for 23%. It is anticipated that quarterly sales patterns will be generally consistent with the prior fiscal year.
• The Company intends to perform approximately 339 events including 12 international events with projected attendance of approximately 2.6 million.
• The average ticket price is anticipated to be approximately $36.00.
• The Company is estimating 7.2 million domestic pay-per-view buys for the year and anticipates that 40% to 45% of these buys will be achieved in the first 6 months of the year. Included in the estimates are approximately 800 000 out-of- period buys. Total out-of-period buys were approximately 1.0 million for fiscal year 2002.
• Estimated advertising revenues will be approximately $75.0 million assuming a stabilizing advertising market.
• The Company expects annual television rights fees from its domestic and international distribution contracts to be approximately $55.0 million for the year.
• Branded Merchandise revenues are anticipated to grow 4% due in part to the increase in the number of live events.
• Revenues from The World are expected to grow approximately 6% to $15.0 million as the venue returns to a more normal level of business and new revenue streams take hold.
• The Company expects its profit contribution margins in its business segments to be in the range of 38% to 39% of revenues.
• SG&A expenses are expected to be 26% of revenues.
• Depreciation and amortization is expected to be approximately $15.0 million for the year.
• Interest income net of interest expense is expected to be approximately $4.0 million in 2003.
• The effective tax rate is expected to be 38% for the year.
• Capital spending for the year is expected to be approximately $15.0 million.

World Wrestling Entertainment Inc.

Consolidated Statements of Operations (dollars in thousands except per share data) (Unaudited)

	Three Months Ended		Year Ended
	April 30 2002	April 30 2001	April 30 2002	April 30 2001
Net revenues	$135 917	$131 108	$425 026	$456 043
Cost of revenues	76 369	75 374	260 218	259 000
Stock option charges	–	–	–	760
Selling general and administrative expenses	31 090	29 628	109 571	104 122
Depreciation and amortization	5 418	2 790	13 113	7 180
Operating income	23 040	23 316	42 124	84 981
Interest income net and other income net	1 601	4 040	17 418	15 060
Income from continuing operations before income taxes	24 641	27 356	59 542	100 041
Discontinued Operations:
Loss from XFL operations net of minority interest	–	(21 827)	–	(31 293)
Estimated (loss) income on shutdown of the XFL net	–	(15 617)	4 638	(15 617)
(Loss) income from discontinued operations	–	(37 444)	4 638	(46 910)
Net income (loss)	$15 970	$(20 408)	$42 233	$15 987
Earnings (loss) per share – Basic and Diluted
Continuing operations	$0.22	$0.23	$0.52	$0.87
Discontinued operations	$-	$(0.51)	$0.06	$(0.65)
Net income (loss)	$0.22	$(0.28)	$0.58	$0.22
Weighted average common and common equivalent shares:
Basic	72 848 551	72 929 392	72 861 797	72 025 222
Diluted	72 911 498	72 994 444	72 865 624	72 216 870

World Wrestling Entertainment Inc.

Guidance for Fiscal Year 2003 as of June 26 2002 ($’s in millions)

Revenues	Fiscal 2003 (period ending 4/30/03)	Fiscal 2002 (period ending 4/30/02
Live & Televised Entertainment
Events	$100.0	$74.1
Pay-per-view	120.0	112.0
TV Rights Fees	55.0	53.3
TV Advertising	75.0	83.6
Other	–	0.5
Total Live & Televised	$350.0	$323.5
Branded Merchandise
Merchandise	30.0	26.2
Publishing	20.0	17.6
Home Video	15.0	13.6
Licensing	20.0	23.0
New Media	5.0	4.4
The World	15.0	14.1
SmackDown! Records/Other	1.0	2.6
Total Branded Merchandise	$106.0	$101.5
Total Revenues	$456.0	$425.0
Profit Contribution Margins
Live & Televised Entertainment	39%	40%
Branded Merchandise	38%	35%
Total	39%	39%
SG&A Expense	$117.0	$109.6
EBITDA (Earnings before interest taxes depreciation	$60.0	$55.2
EBITDA as % Total Revenue	13%	13%
Depreciation and Amortization	$15.0	$13.1
Operating Income	$45.0	$42.1
Key Drivers :
Number of Events	339	237
Live Event Attendance (in millions)	2.6	2.0
Domestic Pay-Per-View Buys (in millions)	7.2	7.1

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Media Contact: Gary Davis 203-353-5066

Investor Contact: Tom Gibbons 203-328-2576

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; risks associated with producing live events both domestically and internationally; uncertainties associated with international markets; 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.