WORLDS.COM REPORTS REVENUE
FOR FIRST QUARTER 2000
New York, NY, May 15, 2000- Worlds.com (OTC/BB: WDDD), the premier
three-dimensional (3D) entertainment portal on the Internet, today reported
revenue of $180,023, and a loss of $2,008,495, or $.11 per share, for the first
quarter of 2000, ending March 31.
This compares to revenue of $35,177 and a loss of $628,238, or $.04 per share,
for the corresponding quarter in 1999.
The Company said that its first advertising campaign, conducted in Boston, New
York and San Francisco during the quarter, produced significant and continuing
growth in visitor traffic. Total log-ins increased 53 percent from the week prior to
the introduction of the advertising to end of the campaign, one month later.
"We are extremely pleased with the response to our radio and billboard advertising
campaign," said Steven G. Chrust, chairman. "While we advertised in just three
markets, we registered increases in all of our key measurement areas: unique
users; hours on-line; minutes per log-in, and average log-ins per user. This
activity preceded our successful Hanson Concert and 3D chat on May 6. The
Chat was particularly significant because it was the first ever 3D Chat utilizing
Avatars to ask and respond to questions."
Referring to a long-term contract with e-NewMedia, an ISP in Asia, Chrust said,
"As a practice, we negotiate upfront payments for development costs of certain
Worlds. Even though the development may be complete the revenue is spread
over the estimated useful life of the project.
"The Company received $500,000 in 1999 which is shown as deferred income on
the balance sheet," he said. "Such amounts will be recognized into income over
24 months."
For the quarter reported today, Chrust said that revenue was affected by the
"seasonal" drop-off in e-Commerce as well as "our decision to update our retail
systems in order to ensure that they will be able to efficiently transact our
e-Commerce operations as they grow. In the short term, this meant reducing our
e-Commerce activity and revenue."
Worlds.com also completed a private placement during the quarter that netted
$3.7 million to the Company. The Company’s contract with Road Runner, the cable
modem Internet site jointly-owner by TimeWarner, Microsoft, Compaq, Advance/
Newhouse and MediaOne Group, was extended during the quarter and a new
agreement was signed with Powernet, an ISP in the United Kingdom.
"In the first 45 days of the second quarter, we have introduced a new design for
our homepage and additional design enhancements to our entertainment portal,"
Chrust said. "We have more events planned in the coming months and will be
opening new e-Commerce stores to take advantage of systems’ upgrades."
About Worlds.com
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, andys@middleberg.com /
rebecca@middleberg.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.
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