Concord, NC — WORLD RACING GROUP REPORTS RECORD ANNUAL REVENUE OF $19.6 MILLION, SIGNIFICANT IMPROVEMENT IN OPERATING RESULTS FOR 2007
Decreases of 45% in Net Loss Achieved for 2007
 
World Racing Group, Inc. (OTCBB: WRGI) announced record revenue of $19.6 million, up 30%, from the $15.1 million reported calendar year 2006.  Significant improvements in operating results were also achieved in 2007, including a decreased net loss of 45%, to $12.7 million, from $22.8 million for the prior year.

“The Company is extremely well positioned to continue to accelerate these positive trends and operating results in 2008,” said Brian Carter, the Company’s Chief Executive Officer.  “Importantly, we finished 2007 with increased forward momentum by adding several key sponsors to our long list of marketing partners for 2008.   Our contracted sponsorship revenue base grows every day, which continues to reinforce the significance of raising the profile of our events and confirms our investment in television broadcasts in 2007.”

 “Highlighting our momentum into 2008 was our recently announced partnership with SPEED TV, owned by Fox Broadcasting, for 25 hours of original television programming, including five multi-hour special events and additional scheduled re-broadcasts.  Our focus is on growing sponsorship and advertising revenues in 2008, and a strong television package is a critical component to our success,” Mr. Carter added.

“In 2008, we anticipate 60-70% growth in our sponsorship and advertising revenue and merchandise sales.  Additionally, we expect sustainable, measurable growth in our racing and event operations, both in sanctioning fees and ticket sales for the year.  As a result of this growth and other cost savings implemented for 2008 we expect track and event operations expenses to decrease significantly as a percentage of total revenue.”

Mr. Carter concluded, “We had a very successful start to our 2008 season at the 37th Annual Alltel DIRTcar Nationals in February.  Despite weather causing a few issues late in the first quarter for our touring series we are well prepared for the heart of the racing season which starts in April for most of our tracks and series.  I am confident that as we leverage our extensive assets to all aspects of our business, World Racing Group will prosper in 2008.”

About World Racing Group, Inc.
World Racing Group, Inc. (OTCBB: WRGI), a sports entertainment company, is a world leader in the sanctioning and promotion of dirt track auto racing.  WRGI, based in Concord, N.C., owns and operates the three highest profile national touring series for dirt track racing in the United States:  
•    The Advance Auto Parts World of Outlaws® Sprint Car Series
•    The World of Outlaws Late Model Series(SM)
•    The Advance Auto Parts Super DIRTcar Series™
WRGI sanctions more than 4,900 local and regional dirt track racing events in the United States and Canada at 126 tracks each year under the DIRTcar™ Racing brand. In addition, WRGI owns and operates seven premier dirt track speedways.  To learn more about World Racing Group, visit worldracinggroup.com.

Safe Harbor Statement
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995.  Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “if”, “should” and “will” and similar expressions as they relate to World Racing Group, Inc. are intended to identify such forward-looking statements.  We may from time to time update these publicly announced projections, but we are not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur.  These projections are subject to change and could differ materially from final reported results.  For a discussion of such risks and uncertainties, see “Additional Factors That May Affect Future Results” in our report on Form 10-KSB filed with the Securities and Exchange Commission and our other filings under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

(Tables follow)

 

WORLD RACING GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2007 and 2006

    
2007
    
2006

Revenues        
  Race sanctioning and event fees            $    8,171,839        $    4,717,662
  Admission fees and ticket sales                7,306,950            6,897,834
  Sponsorship and advertising revenue            3,547,226            2,500,313
  Merchandise sales                505,218            754,592
  Other revenue                 111,380             273,739
          Total revenues            $    19,642,613        $    15,144,140
        
Operating expenses                
  Track and event operations                22,781,683            19,301,329
  Sales and marketing                1,657,905            1,883,094
  Merchandise operations and cost of sales                275,812            823,560
  General and administrative                2,653,528            3,022,117
  Non-cash stock compensation                2,170,802            2,710,658
  Goodwill impairment            -            1,508,440
  Depreciation and amortization                819,758            774,130
          Total operating expenses                30,359,488            30,023,328
        
Loss from operations                (10,716,875)            (14,879,188)
        
Other (Expenses) Income        
  Interest income                --            92,119
  Interest expense                (1,933,764)            (8,021,605)
Total Other Expense            (1,933,764)            (7,929,486)
        
Net (Loss)            $    (12,650,639)        $    (22,808,674)
Dividends on preferred stock:        
    Stated dividends, Series D Preferred Stock            (1,267,435)            -
    Exchange of warrants for Series C preferred
        stock        
        -        
        (1,326,335)
    Exchange of warrants for Series C preferred
        stock        
        -        
        (1,250,000)
Net loss applicable to common stock            $    (13,918,074)        $    (25,385,009)
        
Net loss applicable to common stock
  per common share —
    Basic and diluted        

    $    (0.89)    

    $    (1.92)
Weighted average common shares outstanding —
    Basic and diluted        
        15,608,748    
        13,246,875
        
 
WORLD RACING GROUP, INC.
CONSOLIDATED BALANCE SHEETS
December 31, 2007 and December 31, 2006

    December 31,
2007
    December 31,
2006

ASSETS        
Current assets                
  Cash and cash equivalents        $        1,668,611    $        532,230
  Accounts receivable — trade, net                317,678            223,065
  Inventory                10,252            110,077
  Prepaid interest, secured notes                721,424            —
  Prepaid expenses and other current assets                   746,982               330,943
          Total current assets                 3,464,947             1,196,315
Land, buildings and equipment, net                10,300,476            10,447,633
Trademarks                100,000            100,000
Goodwill, net of impairment of $10,320,537 in 2007 and 2006            —            —
Prepaid Expenses –  long term                —                166,667
Other assets, net of amortization of $209,598 in 2007 and
    $55,331 in 2006        
        593,685    
        140,122
          Total assets        $        14,459,108    $        12,050,737
                
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                
Current liabilities                
  Accounts payable        $        620,973    $        474,781
  Accrued liabilities                1,125,404            1,147,749
  Deferred revenues                421,438            129,424
  Notes payable            689,208            713,008
          Total current liabilities                2,857,023            2,464,962
  Notes payable, net of discount of $2,515,966 in 2007 and $0
    in 2006    
         13,091,045                 
         4,001,711             
          Total liabilities                15,948,068            6,466,673
                
Stockholders' Equity (Deficit)        
  Series D Preferred stock, $0.01 par value; 20,000 shares
    authorized; 17,875 shares issued and outstanding at
    December 31, 2006    

        —    

        53,624,538
  Series E Preferred stock, $0.01 par value; 50,000 shares
    authorized; 44,538 shares issued and outstanding at
    December 31, 2007    

        445        

        —
  Common stock, $0.0001 par value; 100,000,000 shares
    authorized; 32,147,879 and 14,374,496 shares issued
    and outstanding at December 31, 2007 and
    December 31, 2006, respectively        


        3,215    


        1,438
  Additional paid-in capital                71,883,982            12,684,051
  Accumulated deficit            (73,376,602)        (60,725,963)
          Total stockholders' equity (deficit)         (1,488,960)              5,584,064
          Total liabilities and stockholders' equity        $        14,459,108     $        12,050,737