SportsLine USA, Inc. Reports Third Quarter Financial Results

FORT LAUDERDALE, FL (October 21, 1999) - SportsLine USA, Inc. (Nasdaq:SPLN), the leading global Internet sports media company and publisher of CBS SportsLine (www.sportsline.com), today announced record revenue and site traffic for the third quarter ended September 30, 1999. Revenue increased 104% to $15.2 million in the third quarter of 1999, compared to $7.4 million in the same quarter last year.

The Company posted net income of $5.1 million, or $0.22 per basic and diluted share, for the third quarter. This includes an extraordinary gain of $21.8 million from the retirement of a portion of the Company's convertible debt. Excluding the extraordinary gain and non-recurring charge, the Company reported a net loss for the third quarter of $16.7 million or $0.72 per basic and diluted share. EBITDA (earnings before interest, taxes, depreciation and amortization) loss for the quarter was $10.1 million, excluding the extraordinary gain on the retirement of debt.

Traffic to the Company's Web sites grew 78% over the same period last year, averaging approximately 9.3 million page views per day for the third quarter of 1999, compared to 5.2 million page views per day in the same quarter last year.

A record 4.7 million unique visitors to SportsLine USA were reported by Media Metrix for September, an increase of 68% over the 2.8 million unique visitors in September 1998, and 15% greater than in August. SportsLine USA's combined reach in September among users at home and at work rose to 7.3%, its second highest level ever.

"During the third quarter, SportsLine once again demonstrated the long-term viability of our business through continued growth in revenue, traffic and reach," said Michael Levy, president and CEO of SportsLine USA. "We have invested heavily in building out our business and brand both domestically and internationally, and these investments have begun to pay dividends. We believe the same strategic focus that has catapulted SportsLine to the forefront of our industry will enable us to achieve significant leverage out of our business model over the long term."

Financial Highlights

(In thousands except per-share data, unaudited)

   Three Months Ended

   Nine Months Ended

    September 30,

    September 30,

1999

1998

1999

1998

Revenue

$ 15,155

$ 7,431

$ 39,236

$ 21,233

Net loss before extraordinary gain and non-recurring charge

$ (16,720)

$ (7,721)

$ (39,229)

$ (24,232)

Basic and diluted net loss per share before extraordinary gain and non-recurring charge

$ (0.72)

$ (0.41)

$ (1.74)

$ (1.36)

Net Income (loss)

$ 5,089

$ 8,821

$ (17,420)

$ (25,332)

Basic and diluted net income (loss) per share

$ 0.22

$ (0.46)

$ (0.77)

$ (1.42)

Weighted average shares outstanding

23,263

19,063

22,585

17,801

EBITDA,excluding extraordinary gain non-recurring charge

$ (10,120)

$ (5,192)

$ (22,023)

$ (15,620)

Average page views per day

9,291

5,225

--

--

Average visits per day

698

520

--

--

Revenue Reaches Record Highs

SportsLine revenue of $15.2 million for the third quarter established a new quarterly high, increasing 16% over second quarter revenue of $13.0 million. Third quarter revenue increased 104%, compared to the $7.4 million posted in the third quarter of 1998. The Company's largest revenue source continues to be advertising, which accounted for a record $7.6 million in the quarter, or 50% of the Company's revenue. Advertising revenue increased 81% compared to the same quarter last year.

Record Traffic Set for the Quarter, Month and Day

SportsLine averaged 9.3 million page views per day for the quarter, an increase of 78% over the 5.2 million average daily page views during the same quarter in 1998. The previous best quarter was the quarter ended June 30, 1999 with an average of 8.4 million page views per day.

For the month of September, SportsLine averaged approximately 13 million page views per day, which represents a 100% increase over the 6.5 million average daily page views generated in September 1998. The previous best month was May 1999 with an average of 9 million page views per day.

Additionally, on September 26, the third Sunday of the NFL season, the SportsLine sites received approximately 22 million page views, the highest total ever for a single day. That surpassed the 21.5 million page views attained on March 12, 1999, the second day of the NCAA Men's Basketball Tournament.

Promotional/Programming Alliance Established with Westwood One/CBS Radio Sports

Westwood One, Inc., America's largest radio network, and SportsLine signed a three-year, $9 million promotional and programming agreement in August. SportsLine is co-producing a combination of exclusive pre-game, halftime and post-game updates, as well as scoreboard reports for all of Westwood One/CBS Radio Sports' coverage of live sporting events, including on an annual basis 87 NFL football games, 42 NCAA football and 44 basketball games, U.S. Open and Masters golf championships, 12 championship boxing events and 12 Notre Dame football games. In exchange, SportsLine receives a variety of on-air promotional mentions for CBS SportsLine programming, products and services on the broadcasts. In addition, Westwood One is syndicating SportsLine's daily sports talk show, "The Drive," and Sunday NFL pre-game and post-game shows that are produced by SportsLine.

SportsLine Becomes Force in Producing Official League Sites

During the quarter, the PGA TOUR and SportsLine relaunched PGATOUR.com, the Tour's official Web site. The new site integrates the best features of PGATOUR.com and GolfWeb.com, creating the largest, most comprehensive golf site on the Internet. PGATOUR.com joins majorleaguebaseball.com and NFLEurope.com as SportsLine-produced official league sites.

WebMD Signs as Content Provider/Sponsor of CBS SportsLine Health & Wellness Area

In September, WebMD, a leading provider of healthcare information on the Internet, became the exclusive sponsor and content provider for CBS SportsLine's Health & Wellness area, under a two-year marketing and promotion agreement.

SportsLine Repurchases Notes

During August, SportsLine repurchased $60 million of its 5% Convertible Subordinated Notes due 2006 for approximately $36.4 million, and as a result, SportsLine is recognizing an extraordinary gain of $21.8 million, net of unamortized debt issuance costs this quarter. This week, SportsLine announced that it completed a tender offer for the remaining outstanding Notes, and that approximately $70 million were tendered and accepted for payment pursuant to the offer. Notes in an aggregate amount of approximately $20 million remain outstanding. The aggregate cost to repurchase the Notes tendered was approximately $53 million, and as a result, SportsLine will recognize an extraordinary gain of approximately $14 million, net of tender offer expenses and unamortized debt issuance costs in the quarter ending December 31, 1999.

MountainZone.com to Provide Outdoor Sports Content and Commerce

SportsLine and ZoneNetwork.com, publisher of MountainZone.com, the leading mountain sports Web site, signed an exclusive three-year content and commerce agreement in September. ZoneNetwork is producing co-branded, customized sites and stores for each of SportsLine's expanding list of worldwide properties in a variety of categories, including mountain, snow and other outdoor sites. SportsLine will receive a minority equity interest in ZoneNetwork.com and a multi-million dollar fee in exchange for promotion of the co-branded sites and stores.

SportsLine Launches Affiliate Network

Last week, SportsLine launched the SportsLine Affiliate Network, which offers individual Web sites the opportunity to receive CBS SportsLine's award-winning sports content and to earn revenue by generating sales in SportsLine's e-commerce area, shop.sportsline.com. The SportsLine Affiliate Network is comprised of two components -- the CBS SportsLine News Affiliate Program and the SportsLine Merchandise Affiliate Program. The News Affiliate Program allows participating Web publishers, regardless of size, to feature CBS SportsLine's updated sports headlines and scores, while the Merchandise Affiliate Program enables affiliates to earn commissions on e-commerce transactions from shop.sportsline.com.

European Sites Launched

SportsLine USA, Inc.'s majority-owned European subsidiary recently changed its name from SportsLine Europe Limited to Sports.com Limited. Two new sites were launched in September, France.Sports.Com, which provides extensive French-language coverage of popular sports in the French market, and Rugby.Sports.Com. Additionally, Sports.com became the primary sports content provider for Netscape Online in the U.K. Finally, through its three-year promotional and consulting agreement with IMG, the largest independent producer and packager of sports programming in the world, Sports.com became the exclusive Internet sports media partner for both the Rugby World Cup site and the official site of Manchester United, the world's most popular soccer club.

Second Phase of SportsLine Rewards Program Launched

Phase Two of the SportsLine Rewards program was launched in July with the substantial enhancement of the SportsLine Rewards Plus program, adding value to the $39.95 annual membership program with unique and exciting experiences, exclusively for members. Rewards Plus members have access to members' only chats with sports superstars, opportunities to cash in or bid their points for exclusive regional and national events, and opportunities to win exciting and unique prizes. Beyond encouraging consumer loyalty, the SportsLine Rewards and Rewards Plus programs were designed to develop the broadest and deepest database of sports fans anywhere, and to leverage the database to enhance all aspects of SportsLine's revenue model.

About SportsLine USA, Inc.

SportsLine USA, Inc. (NASDAQ:SPLN) is at the leading edge of media companies, providing Internet sports content, community and e-commerce on a global basis. SportsLine USA's content includes more than 400,000 pages of multimedia sports information, entertainment and merchandise. SportsLine USA was founded in 1994 and its flagship Internet sports service (www.sportsline.com) was renamed CBS SportsLine in March of 1997 as part of an exclusive promotional and content agreement with CBS Sports. SportsLine USA produces the official league Web sites for Major League Baseball, the PGA TOUR and NFL Europe League, and serves as the primary sports content provider for America Online, Netscape and Excite. In May 1999, the Company commenced operations in Europe through its majority-owned subsidiary, Sports.com, formerly known as SportsLine Europe Limited. SportsLine USA, Inc. has announced plans to change its name to SportsLine.com, Inc. subject to shareholder approval.

Note: This press release contains forward-looking statements, which involve risks and uncertainties. SportsLine USA's actual results could differ materially from those anticipated in these forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet, constantly changing technology and market acceptance of the Company's products and services. Investors are also directed to consider the other risks and uncertainties discussed in SportsLine USA's Securities and Exchange Commission filings, including those discussed under the caption "Risk Factors That May Affect Future Results" in SportsLine USA's latest Annual Report on Form 10-K. SportsLine USA undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact:

Kenneth Sanders
Chief Financial Officer
SportsLine USA, Inc.
(954) 351-2120, ext. 829

(Tables Follow)

SportsLine USA, Inc.

Condensed Consolidated Statements of Operations

(in thousands except per-share data, unaudited)
(unaudited)

3 Months Ended

9 Months Ended

September 30,

September 30,

1999

1998

1999

1998

Revenue:

    Advertising

$ 7,602

$ 4,200

$ 19,887

$ 12,753

    E-commerce

3,654

1,141

9,535

2,182

    Licensing and other

2,008

789

5,264

2,885

    Membership and premium
     services

1,315

1,301

3,974

3,413

    International

  576  

    --    

  576  

    --    

        Total revenue

15,155

7,431

39,236

21,233

Cost of revenue - domestic

7,886

4,081

20,053

12,465

Cost of revenue - international

  445  

   --   

  445  

   --   

       Total cost of revenue

8,331

4,081

20,498

12,465

Gross margin

 6,824 

 3,350 

18,738

 8,768 

Operating expenses:

   Product development

459

305

1,222

1,018

   Sales and marketing

10,235

4,777

25,272

13,771

   General and administrative

4,923

3,460

12,767

9,599

   Depreciation and
     amortization

7,631

3,977

20,191

11,652

   International

1,327

--

1,500

--

   Other - non-recurring
     charge

   --   

 1,100 

   --   

 1,100 

Total operating expenses

24,575

13,619

60,952

37,140

Loss from operations

(17,751)

(10,269)

(42,214)

(28,372)

Net interest and other income

 1,031 

 1,448 

 2,985 

 3,040 

Net loss before extraordinary gain

(16,720)

(8,821)

(39,229)

(25,332)

Extraordinary gain on retirement of convertible debt

21,809

   --   

21,809

   --   

Net income (loss)

$ (5,089)

$ (8,821)

$ (17,420)

$ (25,332)

Basic and diluted net loss per share before extraordinary gain and non-recurring charge

$ (0.72)

$ (0.41)

$ (1.74)

$ (1.36)

Basic and diluted net income (loss) per share

$ (0.22)

$ (0.46)

$ (0.77)

$ (1.42)

Average shares outstanding

23,263

19,063

22,585

17,801

EBITDA, excluding extraordinary gain and non-recurring charge

$(10,120)

$ (5,192)

$ (22,023)

$ (15,620)




SportsLine USA, Inc.

Condensed Consolidated Balance Sheets

(in thousands)
(unaudited)

Sept. 30, 1999

Dec. 31, 1998

Assets:

  Cash and short-term
     marketable securities

$ 98,377

$ 59,075

  Current deferred advertising
    and content-CBS

16,538

413

  Receivables, prepaids and
     other current assets

25,521

15,232

  Non-current marketable
     securities

$ 79,907

$ 39,205

  Property and equipment,
     net

7,718

5,367

  Long-term deferred
   advertising & content-CBS

33,038

--

  Licensing rights, goodwill
     and other assets

36,256

18,363

$ 297,355

$ 137,655

Liabilities and Shareholders' Equity:

  Current liabilities

$ 12,915

$ 10,211

  Long-term convertible notes

90,000

--

  Other long-term liablities

15,994

8,481

  Shareholders' equity

178,446

118,963

$ 297,355

$ 137,655

# # #

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