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National Lampoon Inc. (OTCBB:NLPN) today announced its financial results for the fourth quarter and fiscal year ended July 31, 2004.

For the year ended July 31, 2004, total revenues increased by approximately 91% to $1.9 million from $1 million for the year ended July 31, 2003. The net loss for 2004 decreased to $5.1 million, or $1.67 per fully diluted share, as compared to a net loss of $5.9 million, or $2.01 per fully diluted share for 2003.

For the fourth quarter ended July 31, 2004 revenue was $433,000 compared to $460,000 in the fourth quarter of 2003. The net loss for the fourth quarter of 2004 decreased to $948,000, or $0.31 per fully diluted share, compared to a net loss of $1.8 million, or $0.62 per fully diluted share in the fourth quarter of 2003.

Dan Laikin, Chief Operating Officer, commented, "Our revenue increase points to the success we are having in focusing our efforts as an integrated media and entertainment company. Revenue growth is a key indicator of our success, and these results clearly point to the extraordinary progress we're making in building on our plans and our businesses. We expect to continue to post growth across all of our units as we deliver on our operating and strategic plans."

Doug Bennett, Executive Vice President, commented, "Our success in delivering content to our core 18-24 male audience, through our National Lampoon Network, our network of Internet sites, and under our brand through motion pictures and television, CD's and home entertainment DVD and VHS offerings, licensing and publishing, has enabled us to build a platform for advertisers and marketers that is unmatched in the media world."

National Lampoon Network

National Lampoon Network (NLN) provides and distributes television entertainment through a network of over 600 affiliated colleges and other educational television stations, reaching nearly 4.8 million college students daily. NLN is a powerful distribution source for National Lampoon content, as well as a platform to leverage all of the Company's entertainment initiatives. In the fiscal year ended July 31, 2004, we delivered eight half-hour original television programs for distribution solely on NLN. Each show was created with a view towards the 18-24 year-old demographic and included new episodes. NLN derives substantially all of its revenues from the sale of commercial airtime, sponsorship, and integrated and field marketing to national advertisers by our in house sales staff. Additionally, a team of over 1,200 students provide on-campus marketing for advertisers and sponsors. Focusing on the fact that advertisers seek early brand adoption for their products, NLN offers prospective advertisers a direct link to the college demographic.

Entertainment Division

National Lampoon's Entertainment Division, develops, produces and delivers National Lampoon-branded comedic content. Through our entertainment division, we develop and produce motion picture and television programming; develop, produce and distribute programming for home entertainment in DVD, VHS and other formats; develop, produce and distribute material for radio, CDs and other audio markets; and coordinate National Lampoon branded sponsored live events, such as the spring break project, NL's Greek Games.

As of October 2004, two new branded feature films were released and two additional motion pictures completed principal production. "National Lampoon Presents Dorm Daze" was independently distributed in the home entertainment rental markets, and National Lampoon's Gold Diggers was independently distributed on under 1,000 screens. The two other films are anticipated to be released in 2005. They include "National Lampoon's Pledge This!" starring Paris Hilton; and "National Lampoon's The Trouble with Frank", starring Jon Bon Jovi and directed by Academy Award winner Arthur Hiller.

Publishing Division

The Publishing Division are where the roots of the Company lie -- in 1970, National Lampoon published its first comedy magazine, known for its edgy comedic content. In the past, the Publishing Division has acted as both a breeding ground and showcase for content, as well as a powerful advertising property. This division will now focus on National Lampoon-branded print publications for mass distribution on either a regular or one-time basis. In 2003 we entered into an agreement with Rugged Land LLC to publish 6 National Lampoon books based on new and established National Lampoon comedic content. We have released three books under this agreement, including "1964 High School Reunion Year Book," "National Lampoon's Book of Love," and "National Lampoon's Big Book of True Facts."

Licensing Division

The Company licenses the National Lampoon name to generate revenues through strategic partnerships both inside and outside its normal course of business. Current licensing initiatives include the development of National Lampoon branded video lottery terminal (VLT) machines through a strategic partnership with Multimedia Games, Inc., the development of video games with Activision, and selected merchandising arrangements for various consumer products.

About National Lampoon

National Lampoon, Inc. is active in a broad array of entertainment segments, including feature films, television programming, interactive entertainment, home video, audio CDs and book publishing. The Company also owns interests in all major National Lampoon properties, including National Lampoon's Animal House, the National Lampoon Vacation series and National Lampoon's Van Wilder. The National Lampoon Network serves over 600 colleges and universities throughout the United States. The network reaches as many as 4.8 million students, or nearly one in four of all 18 to 24 year old college students. In addition, the Company operates a humor Website, www.nationallampoon.com , on the Internet. The Company has four operating divisions: National Lampoon Network, Entertainment Division, Publishing Division and Licensing Division.

Forward-looking Statements

This press release contains forward-looking statements, which are based on the Company's current expectations, forecasts and assumptions. In some cases forward-looking statements may be identified by forward-looking words like "would," "intend," "hope," "will," "may," "should," "expect," "anticipate," "believe," "estimate," "predict," "continue," or similar words. Forward-looking statements involve risks and uncertainties which could cause actual outcomes and results to differ materially from the Company's expectations, forecasts and assumptions. These risks and uncertainties include risks and uncertainties not in the control of the Company, including, without limitation, the current economic climate in the United States and other risks and uncertainties, including those enumerated and described in the Company's filings with the Securities and Exchange Commission, whose filings are available on the SEC's website at sec.gov. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.