NLN National Lampoon,

REVENUES INCREASE OVER 1900% FOR FOURTH QUARTER LOS ANGELES, Nov. 11 /PRNewswire-FirstCall/ -- National Lampoon, Inc. (AMEX:NLN), the leading brand in comedy, today released its fiscal fourth quarter and full year 2008 financial results for its fiscal year ending July 31, 2008. For the quarter ending July 31, 2008 the company reported revenues of $3,491,253, as compared to $167,987 for the comparable quarter ended July 31, 2007, an increase of approximately 1980%, along with a net profit of $231,575 as compared with a net loss of $1,333,500 for the prior comparable quarter. The results for the period also includes non-cash costs associated with accrued preferred stock dividends and option grants, along with costs associated with the growth of the company's Internet and film production initiatives. For the full year ending July 31, 2008, the company reported revenues of $7,437,984, as compared to $6,099,065 for the year ended July 31, 2007 and a net loss of $1,686,974 or ($0.39) per fully diluted share as compared with a net loss of $2,504,170 or ($0.49) per fully diluted share for the prior fiscal year. The 2007 results also included a substantial one-time gain based on a settlement with Universal Studios, while no such revenues were recognized in 2008. The decrease in net loss was primarily due to the significant increase in revenues from distribution along with increases in production revenues. The net loss for the twelve-month period also includes non-cash costs associated with accrued preferred stock dividends and option grants, along with costs associated with the growth of the company's Internet and film production initiatives. The company also plans to expand its ongoing overhead reduction plan as a result of a company-wide initiative to reduce recurring overhead expenses by approximately 20%. These expected savings consist of reduction of expenses relating to employee headcount and compensation, professional fees, insurance, and general overhead expenses. "In these challenging times, this has been an exciting second half of the year for National Lampoon. In addition to reaching our first net profit in the third quarter of this year, we were actually able to improve on that achievement in the most recent quarter. We have spent substantial time and energy building and growing our revenue base and business, and it's great to finally see the economic benefit of both on a going forward basis," noted company Chief Executive Officer Daniel S. Laikin. "While we are dealing with very challenging economic conditions, we are encouraged going into 2009. We continue to acquire and produce films to run through our distribution platforms, as well as grow our library of online properties and advertiser base, all of which contribute to our revenue growth. We are very proud of our progress and what we have built and are cautiously optimistic about our business going into 2009. We have a great team throughout the company and everyone is committed to build upon our revenue and profitability and improve shareholder value," Laikin added. Some of the company highlights in 2008 include: -- Reached net profitability for the second half of 2008 -- Completed audit of "Vacation" franchise and currently in negotiations with Warner Bros. -- Delivery of our first in-house feature film, "National Lampoon's Bag Boy" -- Completed production on "National Lampoon's Ratko: The Dictator's Son" -- Started production of "National Lampoon's Legend of Awesomest Maximus" -- Feature film output deals in VOD/PPV -- Expanded International film sales in multiple territories -- National Lampoon Humor Network remains the most trafficked humor sites on the Internet -- Successful and profitable launch of the new National Lampoon Lemmings troupe -- Launch of National Lampoon audio label -- Launch of the National Lampoon ZAZ Network About National Lampoon National Lampoon, Inc. (AMEX:NLN) has been a dominant force in the US comedy world for almost 40 years, and is currently active in a broad array of media and entertainment segments. These include feature films, television programming, online and interactive entertainment, home video, audio, 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. National Lampoon reaches nearly one in four of all 18- to 24-year-old college students in America today. The Company has three core operating divisions: National Lampoon Films, which includes production along with theatrical and video distribution of feature films; College Marketing Division; and National Lampoon Networks, providing humor content through a number of platforms. These include its National Lampoon College TV network, the National Lampoon Humor Network -- the most trafficked humor sites on the web, Toga TV.com -- the company's broadband channel, the Drunk University Network, and the National Lampoon Video Network, which includes channels on YouTube, AOL, Yahoo, Joost, and a number of digital video platforms across the Internet. These are all anchored by the award- winning comedy website http://www.nationallampoon.com/. DATASOURCE: National Lampoon, Inc. CONTACT: Marcy Goot of NATIONAL LAMPOON, +1-310-474-5252, ; or IR Contact, Howard Gostfrand or David Sasso, both for National Lampoon, Inc., +1-305-918-7000, Web site: http://www.nationallampoon.com/

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