Activeworlds.com, Inc. Announces Annual Results

- Revenues Increased to $1.6 Million, up 170% Over the Previous Year -



Apr 16, 2001, 01:00 ET from Activeworlds.com, Inc.

    NEWBURYPORT, Mass., April 16 /PRNewswire/ -- ?
 Activeworlds.com, Inc. (Nasdaq:   AWLD), a leading provider of three-dimensional
 technology on the Internet, recently announced financial results for the year
 ended December 31, 2000.
     On a consolidated basis, revenues for the year ended December 31, 2000
 were $1.6 million compared to $600,000 in 1999, an increase of $1 million for
 the year.  The net loss for the year ended December 31, 2000, decreased to
 ($100,000), or ($.013) per share, compared to a net loss of ($1.0 million), or
 ($.145 per share) for the year ended December 31, 1999.
     The revenue increase was primarily the result of an increase in number of
 licensing agreements of the Company's three-dimensional world server software,
 licensed under the name uniservers for larger applications and galaxervers for
 smaller applications, content design and its mall project with Australian
 based 3D Global.
     Commenting on the annual and fourth quarter results, Rick Noll, President
 & CEO of Activeworlds.com, Inc., stated, "The initiatives we have implemented
 are having a positive effect on our business.  Our priorities for the next
 twelve months are to continue to operate our core businesses on a more
 profitable basis and to improve cash flow.  We believe that we can continue to
 improve upon the tremendous progress made in the past year relating to the
 operating metrics of our principal operating company.  We are intent on
 becoming the leader in three-dimensional Internet environment and interactive
 communication and wish to position our software platform as a standard for the
 delivery of three-dimensional content over the Internet.  Currently, there are
 over 1.5 million users who have downloaded and installed our browser to access
 the Activeworlds.com worlds."
 
     About Activeworlds.com
     Activeworlds.com, Inc. provides software products and online services that
 permit users to enter, move about and interact with others in a
 computer-generated, three-dimensional virtual environment using the Internet.
 The Active Worlds(TM) browser is a small 1 megabyte download and has been
 downloaded by more than 1,000,000 users worldwide.  Through the technology's
 scalable capacity, Active Worlds(TM) users have placed more than
 74,000,000 objects in Active Worlds(TM) largest world Alphaworld, whose
 virtual land space is larger than the state of California. Some uses for the
 software include: online training and education, website development, e-
 commerce and entertainment.  Companies such as Boeing, Siemens, Juno, Cornell,
 and many more are currently using Active Worlds(TM) technology.
 
     Safe Harbor Statement -- Investors should carefully consider the preceding
 information as well as other information contained in this press release
 before making an investment in our securities.  Information contained in this
 press release contains "forward-looking statements" which can be identified by
 the use of forward-looking terminology such as "believes," "expects," "may,"
 "should," or "anticipates" or the negative thereof or given that the future
 results covered by the forward-looking statements will be achieved.  The
 preceding matters constitute cautionary statements identifying important
 factors with respect to such forward-looking statements, including certain
 risks and uncertainties that could cause actual results to vary materially
 from the future results covered in such forward-looking statements.  Other
 factors could also cause actual results to vary materially from the future
 results covered in such forward-looking statements.
 
                             ACTIVEWORLDS.COM, INC.
                      Consolidated Statement of Operations
 
                                                       Year Ended December 31
                                                       -----------------------
                                                          2000        1999
                                                       ----------  -----------
     Revenues........................................  $1,615,882  $   598,993
                                                       ----------  -----------
 
     Operating expenses
     Selling, general and administrative expenses....   1,519,326    1,288,089
     Research and development expenses...............     354,499      381,193
                                                       ----------  -----------
     Total operating expenses........................   1,873,825    1,669,282
                                                       ----------  -----------
 
     (Loss) from operations..........................    (257,943)  (1,070,289)
     Interest income.................................     152,847       24,470
                                                       ----------  -----------
 
     (Loss) before (provision for) benefit from income
     taxes...........................................    (105,096)  (1,045,819)
     (Provision for) benefit from income taxes.......          --           --
                                                       ----------  -----------
 
     Net (loss)......................................   $(105,096) $(1,045,819)
                                                       ----------  -----------
 
     Earnings (loss) per share of common stock
     Basic...........................................      $(.013)      $(.145)
                                                       ==========  ===========
 
                             ACTIVEWORLDS.COM, INC.
                           Consolidated Balance Sheet
                               December 31, 2000
 
     Assets
     Current assets
     Cash........................................................    $3,491,818
     Accounts receivable, trade--net of allowance for doubtful
      accounts of $5,000 ........................................       139,500
 
     Contracts in progress in excess of billings.................       308,737
     Prepaid expenses............................................        80,667
     Advances to officer/stockholder/employees...................        11,551
     Prepaid marketing...........................................       223,450
                                                                     ----------
     Total current assets........................................     4,255,723
                                                                     ----------
     Property and equipment
     Leasehold improvements......................................        27,334
     Equipment and fixtures......................................       297,187
                                                                     ----------
                                                                        324,521
      Less: accumulated depreciation and amortization............        72,558
                                                                     ----------
     Property and equipment, net.................................       251,963
                                                                     ----------
     Total assets................................................    $4,507,686
                                                                     ----------
     Liabilities and Stockholders' Equity
      Current liabilities
      Current portion--capital lease.............................        $9,900
      Accounts payable...........................................        52,382
      Accrued liabilities........................................        66,705
      Deferred revenue...........................................       135,726
                                                                     ----------
     Total current liabilities...................................       264,713
     Capital lease, net of current portion.......................         1,951
     Commitments and contingencies...............................
                                                                     ----------
     Total liabilities...........................................       266,664
                                                                     ----------
     Stockholders' equity
      Preferred stock, $.001 par value, 500,000 shares authorized,
       no shares issued or outstanding...........................            --
      Common stock, $.001 par value, 50,000,000 shares authorized,
       8,515,235 shares issued and outstanding...................         8,515
     Additional paid-in capital...................................    6,292,994
     Note receivable for shares issued............................      (6,500)
     Treasury stock...............................................    (118,403)
     Accumulated deficit..........................................  (1,935,584)
                                                                     ----------
       Total stockholders' equity.................................    4,241,022
                                                                     ----------
       Total liabilities and stockholders' equity.................   $4,507,686
                                                                     ==========
 

SOURCE Activeworlds.com, Inc.
    NEWBURYPORT, Mass., April 16 /PRNewswire/ -- ?
 Activeworlds.com, Inc. (Nasdaq:   AWLD), a leading provider of three-dimensional
 technology on the Internet, recently announced financial results for the year
 ended December 31, 2000.
     On a consolidated basis, revenues for the year ended December 31, 2000
 were $1.6 million compared to $600,000 in 1999, an increase of $1 million for
 the year.  The net loss for the year ended December 31, 2000, decreased to
 ($100,000), or ($.013) per share, compared to a net loss of ($1.0 million), or
 ($.145 per share) for the year ended December 31, 1999.
     The revenue increase was primarily the result of an increase in number of
 licensing agreements of the Company's three-dimensional world server software,
 licensed under the name uniservers for larger applications and galaxervers for
 smaller applications, content design and its mall project with Australian
 based 3D Global.
     Commenting on the annual and fourth quarter results, Rick Noll, President
 & CEO of Activeworlds.com, Inc., stated, "The initiatives we have implemented
 are having a positive effect on our business.  Our priorities for the next
 twelve months are to continue to operate our core businesses on a more
 profitable basis and to improve cash flow.  We believe that we can continue to
 improve upon the tremendous progress made in the past year relating to the
 operating metrics of our principal operating company.  We are intent on
 becoming the leader in three-dimensional Internet environment and interactive
 communication and wish to position our software platform as a standard for the
 delivery of three-dimensional content over the Internet.  Currently, there are
 over 1.5 million users who have downloaded and installed our browser to access
 the Activeworlds.com worlds."
 
     About Activeworlds.com
     Activeworlds.com, Inc. provides software products and online services that
 permit users to enter, move about and interact with others in a
 computer-generated, three-dimensional virtual environment using the Internet.
 The Active Worlds(TM) browser is a small 1 megabyte download and has been
 downloaded by more than 1,000,000 users worldwide.  Through the technology's
 scalable capacity, Active Worlds(TM) users have placed more than
 74,000,000 objects in Active Worlds(TM) largest world Alphaworld, whose
 virtual land space is larger than the state of California. Some uses for the
 software include: online training and education, website development, e-
 commerce and entertainment.  Companies such as Boeing, Siemens, Juno, Cornell,
 and many more are currently using Active Worlds(TM) technology.
 
     Safe Harbor Statement -- Investors should carefully consider the preceding
 information as well as other information contained in this press release
 before making an investment in our securities.  Information contained in this
 press release contains "forward-looking statements" which can be identified by
 the use of forward-looking terminology such as "believes," "expects," "may,"
 "should," or "anticipates" or the negative thereof or given that the future
 results covered by the forward-looking statements will be achieved.  The
 preceding matters constitute cautionary statements identifying important
 factors with respect to such forward-looking statements, including certain
 risks and uncertainties that could cause actual results to vary materially
 from the future results covered in such forward-looking statements.  Other
 factors could also cause actual results to vary materially from the future
 results covered in such forward-looking statements.
 
                             ACTIVEWORLDS.COM, INC.
                      Consolidated Statement of Operations
 
                                                       Year Ended December 31
                                                       -----------------------
                                                          2000        1999
                                                       ----------  -----------
     Revenues........................................  $1,615,882  $   598,993
                                                       ----------  -----------
 
     Operating expenses
     Selling, general and administrative expenses....   1,519,326    1,288,089
     Research and development expenses...............     354,499      381,193
                                                       ----------  -----------
     Total operating expenses........................   1,873,825    1,669,282
                                                       ----------  -----------
 
     (Loss) from operations..........................    (257,943)  (1,070,289)
     Interest income.................................     152,847       24,470
                                                       ----------  -----------
 
     (Loss) before (provision for) benefit from income
     taxes...........................................    (105,096)  (1,045,819)
     (Provision for) benefit from income taxes.......          --           --
                                                       ----------  -----------
 
     Net (loss)......................................   $(105,096) $(1,045,819)
                                                       ----------  -----------
 
     Earnings (loss) per share of common stock
     Basic...........................................      $(.013)      $(.145)
                                                       ==========  ===========
 
                             ACTIVEWORLDS.COM, INC.
                           Consolidated Balance Sheet
                               December 31, 2000
 
     Assets
     Current assets
     Cash........................................................    $3,491,818
     Accounts receivable, trade--net of allowance for doubtful
      accounts of $5,000 ........................................       139,500
 
     Contracts in progress in excess of billings.................       308,737
     Prepaid expenses............................................        80,667
     Advances to officer/stockholder/employees...................        11,551
     Prepaid marketing...........................................       223,450
                                                                     ----------
     Total current assets........................................     4,255,723
                                                                     ----------
     Property and equipment
     Leasehold improvements......................................        27,334
     Equipment and fixtures......................................       297,187
                                                                     ----------
                                                                        324,521
      Less: accumulated depreciation and amortization............        72,558
                                                                     ----------
     Property and equipment, net.................................       251,963
                                                                     ----------
     Total assets................................................    $4,507,686
                                                                     ----------
     Liabilities and Stockholders' Equity
      Current liabilities
      Current portion--capital lease.............................        $9,900
      Accounts payable...........................................        52,382
      Accrued liabilities........................................        66,705
      Deferred revenue...........................................       135,726
                                                                     ----------
     Total current liabilities...................................       264,713
     Capital lease, net of current portion.......................         1,951
     Commitments and contingencies...............................
                                                                     ----------
     Total liabilities...........................................       266,664
                                                                     ----------
     Stockholders' equity
      Preferred stock, $.001 par value, 500,000 shares authorized,
       no shares issued or outstanding...........................            --
      Common stock, $.001 par value, 50,000,000 shares authorized,
       8,515,235 shares issued and outstanding...................         8,515
     Additional paid-in capital...................................    6,292,994
     Note receivable for shares issued............................      (6,500)
     Treasury stock...............................................    (118,403)
     Accumulated deficit..........................................  (1,935,584)
                                                                     ----------
       Total stockholders' equity.................................    4,241,022
                                                                     ----------
       Total liabilities and stockholders' equity.................   $4,507,686
                                                                     ==========
 SOURCE  Activeworlds.com, Inc.