Individual Investor Group, Inc. Reports Record Revenues and 58% Improvement in Operating Loss in 2000

Apr 02, 2001, 01:00 ET from Individual Investor Group, Inc.

    NEW YORK, April 2 /PRNewswire/ --
 Individual Investor Group, Inc. (Nasdaq:   IIGP) today announced record revenues
 for the fiscal year ended December 31, 2000 of $19.8 million, an increase of
 12% from 1999 revenues of $17.7 million.  The company reported record revenues
 in 2000 from its print publications operations of $16.6 million, an increase
 of 8% from 1999 revenues of $15.4 million due primarily to record advertising
 and circulation revenues from the company's flagship print publication,
 Individual Investor magazine.  The company also reported record revenues in
 2000 from its online services operations of $3.2 million, an increase of 38%
 from 1999 revenues of $2.3 million due primarily to record advertising
 revenues from the company's flagship online property, individualinvestor.com
 (http://www.individualinvestor.com).  The record revenues in each segment were
 achieved despite the sale in September 2000 of Ticker magazine and
 InsiderTrader.com.  The company received total consideration of $8.0 million
 in connection with the sale of Ticker magazine, InsiderTrader.com, two domain
 names and the issuance of a 250,000-share warrant with an exercise price of
 $2.00 per share.  These assets had accounted for 23% of the company's revenues
 for the nine months ended September 30, 2000.
     The company's operating loss in 2000 improved 58%, to $3.6 million, as
 compared to $8.5 million in 1999.  The improvement is primarily due to a gain
 on sale of assets of $6.7 million and a $2.1 million increase in revenues,
 partially offset by a $2.6 million write-down of the carrying value of the
 company's investments and a $1.2 million increase in operating expenses.  The
 company's net loss in 2000 improved to $3.4 million, or $0.34 per share, from
 $4.2 million in 1999, or $0.47 per share, reflecting investment and other
 income of $0.2 million in 2000 as compared to $4.3 million in 1999.  Most of
 the 1999 interest and other income was derived from the sale of securities the
 company had obtained in connection with equity-for-advertising transactions.
     In 2000, Individual Investor magazine posted a 9% increase in revenue, to
 $13.0 million from $12.0 million in 1999 and achieved record revenues in both
 advertising and circulation revenue for the year.  In 2000,
 individualinvestor.com posted a 37% increase in revenue, to $2.7 million from
 $2.0 million in 1999.  In February 2001, the company launched a new web site,
 SHORTInterest.com (http://www.shortinterest.com), designed to help investors
 make money off the downward movement of stock prices.  Traffic to the site has
 been growing significantly.
     At December 31, 2000, the company has cash and cash equivalents totaling
 $4.7 million.  During 2000, the company did not issue any stock (excluding the
 issuance of less than 90,000 shares to employees through the exercise of
 options).  During 2000, the company decreased the number of shares of common
 stock outstanding by 1.4 million and the number of shares of common stock
 issuable pursuant to outstanding preferred stock, options and warrants by an
 additional 1.0 million.
     Since the beginning of 2000, the company announced important developments
 concerning its intention to generate licensing revenues (with essentially 100%
 gross margin) related to proprietary stock indexes developed by the company.
 In October 2000, the company signed licensing agreements with Nuveen
 Investments and the American Stock Exchange for the creation of an
 exchange-traded fund based upon the company's America's Fastest Growing
 Companies(TM) Index that, upon receipt of necessary regulatory approval, would
 trade on the American Stock Exchange (similar to the SPDR exchange-traded fund
 based upon the Standard & Poor's 500 index and the QQQ exchange-traded fund
 based upon the Nasdaq 100 index).  Once the exchange-traded fund based upon
 the America's Fastest Growing Companies(TM) Index began trading, the company
 would be entitled to receive quarterly licensing payments that would be almost
 100% gross margin as the company would have essentially no marginal expenses
 associated with such revenues.  Nuveen is working to obtain the necessary
 regulatory approval to commence trading of such an exchange-traded fund but
 there can be no assurance that Nuveen will obtain the necessary regulatory
 approval or that the exchange-traded fund based upon the America's Fastest
 Growing Companies(TM) Index will commence trading.  In March 2001, the company
 extended the America's Fastest Growing Companies(TM) index brand with the
 launch of two new stock indexes, the America's Fastest Growing Companies(TM)
 MidCap 300 Index and the America's Fastest Growing Companies(TM) LargeCap
 50 Index.  The company intends to seek to execute license agreements for the
 creation of financial products based upon the America's Fastest Growing
 Companies(TM) MidCap 300 Index and the America's Fastest Growing Companies(TM)
 LargeCap 50 Index, but there can be no assurance that the company will be
 successful in its endeavors to do so.  The company also will explore
 development of additional stock indexes, such as sector indexes, under the
 America's Fastest Growing Companies(TM) brand, but there can be no assurance
 that the company in fact will develop any stock indexes beyond the existing
 three indexes of the America's Fastest Growing Companies(TM) family described
 above.
     "We believe our nascent index-licensing operations could prove to be very
 valuable and we have announced that we are exploring a range of alternatives
 -- including spinning off our index business to capitalize it separately,
 selling revenue participation rights or selling the intellectual property
 outright -- to unlock the value of these operations," said Jonathan Steinberg,
 the company's chairman and chief executive officer.
     After strong growth (as compared to the corresponding quarters of 1999) in
 advertising revenues for Individual Investor magazine and
 individualinvestor.com during the first nine months of 2000, in the fourth
 quarter of 2000 the company experienced a sudden and sharp decline (as
 compared to the fourth quarter of 1999) of advertising revenues.  This
 weakness in advertising -- which was experienced by many other print and
 non-print media properties -- led to revenues from Individual Investor
 magazine, individualinvestor.com and Individual Investor's Special Situations
 Report newsletter (collectively, the "Current Properties") of $3.1 million in
 the fourth quarter of 2000 as compared to revenues from the Current Properties
 of $4.6 million in the fourth quarter of 1999 (with Ticker magazine and
 InsiderTrader.com, the company reported revenues of $5.4 million in the fourth
 quarter of 1999).  Individual Investor magazine and Individual Investor's
 Special Situations Report newsletter recorded revenues of $2.8 million in the
 fourth quarter of 2000 as compared to $3.6 million in the fourth quarter of
 1999 (together with Ticker magazine, the company's print publications
 operations recorded revenues of $4.3 million in the fourth quarter of 1999).
 individualinvestor.com recorded revenues of $0.3 million in the fourth quarter
 of 2000 as compared to $1.0 million in the fourth quarter of 1999 (together
 with InsiderTrader.com, the company's online services operations recorded
 revenues of $1.1 million in the fourth quarter of 1999).
     The company's visibility with respect to advertising revenues in 2001 is
 poor at the date of this press release.  The sudden and sharp decline in the
 advertising climate that commenced in the fourth quarter of 2000 and has
 continued into the first quarter of 2001 could be followed by an equally
 sudden and sharp rebound or by continued weakness.  To address the current
 challenging environment, the company has implemented a number of steps to
 achieve a significant reduction in operating and general and administrative
 expenses.
     The company noted a recent positive development with respect to one of its
 assets.  In January 2001, Tradeworx, Inc. completed a capital raise pursuant
 to which it raised $3.0 million cash, selling shares at a price of $2.54 per
 share, a 134% premium to the value at which the company has recorded the
 1,045,000 shares of Tradeworx it owns.  In accordance with generally accepted
 accounting principles, the company did not write up the value of its
 investment in Tradeworx to partially offset the $2.6 million charge against
 operating earnings the company took in connection with its adjustment of the
 carrying value of its previously-announced investment in VentureHighway.com.
     With the assistance of The Jordan, Edmiston Group, Inc., a media
 investment bank, the company is exploring a range of strategic alternatives to
 enhance shareholder value, including the possible sale of the company.  The
 company believes that its working capital and, if additional resources were
 necessary, the value it believes it could realize from the sale of assets
 and/or securities of the company, should be sufficient to fund its operations
 and capital requirements through 2001.  There can be no assurance, however,
 that the company would be able to sell any of its assets and/or securities or
 that the process of exploring strategic alternatives will result in the
 company entering into any additional transactions or enhancing shareholder
 value.
     "With the recent decline in the stock market, the value of the advice and
 education we offer in print and online -- and hence the value of our media
 operations -- should be even more apparent," said Steinberg.  "We are pleased
 that Individual Investor magazine and individualinvestor.com have consistently
 been ranked as the #1 sources of stock recommendations in print and online,
 based upon one-year returns, according to http://www.validea.com, beating
 Money, SmartMoney, Fortune, Forbes, Business Week, Barron's, Worth,
 Kiplinger's, CNBC.com, MSN MoneyCentral and CNNfn," said Steinberg.
     "Our ability to consistently identify investment opportunities is not
 simply a recent development," Steinberg continued.  "Over nine years, our
 annual Magic 25(TM) portfolios achieved a compounded return of over 730%,
 virtually identical to that of Warren Buffet's Berkshire Hathaway Class A and
 more than 2.75 times that of the S&P 500 or Dow Jones Industrial Average over
 the same time period.  And our recommendations in Individual Investor's
 Special Situations Report posted average annual returns over an eleven-year
 period of 27% -- more than twice the performance of the S&P 500 or Dow Jones
 Industrial Average over the same time period," said Steinberg.
     "This extraordinary achievement of consistently delivering winning
 investment recommendations is unmatched by any of our media competitors and
 gives us a highly defensible franchise," said Steinberg.  "We saw evidence of
 the demand for our content on the newsstand in 2000, during which we achieved
 stronger growth in single copy sales than Money, SmartMoney, Kiplinger's and
 Worth during an up period (six months ended June 30, 2000 compared to six
 months ended June 30, 1999) and tied with Money for the lowest decline during
 a difficult period (six months ended December 31, 2000 compared to six months
 ended December 31, 1999), according to the Audit Bureau of Circulations," said
 Steinberg.  "We also saw evidence of the attractiveness of our products to
 advertisers seeking to reach our affluent, highly-educated audience, as the
 Publishers Information Bureau reported that Individual Investor magazine had
 stronger growth in ad pages in 2000 than Money, SmartMoney, Kiplinger's and
 Worth," said Steinberg.
     "We believe that our current market capitalization does not come close to
 reflecting the fair value of our media operations, our nascent index licensing
 operations and our other assets.  We are committed to achieving the higher
 valuation that we feel is appropriate," concluded Steinberg.
 
     About Individual Investor Group, Inc.
     Individual Investor Group, Inc. is a financial media company with
 complementary print and Internet properties that serve people interested in
 investing and advertisers who want to reach that audience.  The company's
 properties include Individual Investor magazine, individualinvestor.com
 (http://www.individualinvestor.com), SHORTInterest.com
 (http://www.shortinterest.com) and Individual Investor's Special Situations
 Report newsletter.  The company also owns the intellectual property to the
 family of America's Fastest Growing Companies(TM) indexes.  The company has
 licensed the original America's Fastest Growing Companies(TM) Index to Nuveen
 Investments and the American Stock Exchange for the creation of an
 exchange-traded fund based upon the index, which will commence trading on the
 American Stock Exchange (similar to the SPDR based upon the S&P 500 index and
 the QQQ based upon the Nasdaq 100 index) once regulatory approval is obtained.
     For more information about Individual Investor Group, Inc., please visit
 the company's corporate web site at http://www.indi.com.
 
     Important Notice Concerning Forward-Looking Statements
     Except for historical information, the above statements of this press
 release (including without limitation expressions of expectation, belief,
 anticipation or estimation of the company or its management) are
 forward-looking statements that are subject to certain risks and uncertainties
 that could cause actual results to differ materially from those set forth in
 the forward-looking statements.  The forward-looking statements include, but
 are not limited to, statements related to the possibility of successful
 completion of any financing or strategic transaction or enhancement of
 shareholder value; statements related to expected operating results (including
 without limitation revenues, expenses or contribution to overhead) of the
 company's media properties, expected levels of general and administrative
 expenses; and statements related to the potential receipt of regulatory
 approval necessary to permit trading of an exchange-traded fund based upon the
 America's Fastest Growing Companies(TM)  Index, the potential declaration of
 effectiveness of a registration statement with respect to such product, the
 potential execution of licensing agreements related to the America's Fastest
 Growing Companies(TM) LargeCap 50 Index and the America's Fastest Growing
 Companies(TM) MidCap 300 Index or the company's ability to realize value with
 respect to the intellectual property of such indexes.  These risks and
 uncertainties also include the risks detailed in the company's most recent
 Form 10-K and Form 10-Q filed with the SEC (each of which is available from
 the company or at http://www.sec.gov). These forward-looking statements speak
 only as of the date of this press release. After the issuance of this release,
 the company might come to believe that certain forward-looking statements
 contained in this release are no longer accurate. The company shall not have
 any obligation, however, to release publicly any corrections or revisions to
 any forward-looking statements contained in this release.  America's Fastest
 Growing Companies(R) is a registered trademark of Individual Investor Group,
 Inc.
 
                  INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS
 
                                                          December 31,
     ASSETS                                           2000           1999
     Current assets:
       Cash and cash equivalents                  $ 4,694,476    $ 6,437,542
       Accounts receivable (net of allowances
         of $552,609 in 2000 and $419,048 in 1999)  1,754,200      3,019,710
       Investment in discontinued operations           49,302         49,302
       Prepaid expenses and other current assets    1,036,996        864,851
           Total current assets                     7,534,974     10,371,405
     Investments                                    2,678,546      2,638,356
     Deferred subscription expense                    337,245        383,624
     Property and equipment - net                   1,479,105      1,653,659
     Security deposits                                375,580        374,527
     Other assets                                     300,810        836,396
     Total assets                                 $12,706,260    $16,257,967
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
       Accounts payable                           $ 2,534,027    $ 3,024,395
       Accrued expenses                               462,800        716,670
       Deferred advertising revenue                 1,987,067      1,467,210
           Total current liabilities                4,983,894      5,208,275
 
     Deferred advertising revenue                     532,653        938,164
     Deferred subscription revenue                  2,607,407      2,448,591
     Total liabilities                              8,123,954      8,595,030
 
     Stockholders' Equity:
       Preferred stock, $.01 par value,
         authorized 2,000,000 shares,
         7,880 issued and outstanding in 2000 and
         10,000 issued and outstanding in 1999             79            100
       Common stock, $.01 par value;
         authorized 40,000,000
         shares; 8,972,886, issued and
         outstanding in 2000; 10,353,901 issued
         and outstanding in 1999                       89,729        103,539
       Additional paid-in capital                  33,576,719     33,421,542
       Warrants                                       872,052        742,079
       Deferred compensation                         (29,490)      (272,038)
       Accumulated deficit                       (29,926,783)   (26,332,285)
           Total stockholders' equity               4,582,306      7,662,937
 
           Total liabilities and
             stockholders' equity                 $12,706,260    $16,257,967
 
 
                  INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF OPERATIONS
 
                          Year Ended December 31, Quarter Ended December 31,
                               2000          1999         2000          1999
     Revenues:
       Online Services   $3,188,022    $2,308,186      345,209    $1,078,551
       Print
        Publications     16,590,782    15,362,615    2,765,241     4,317,800
       Total revenues    19,778,804    17,670,801    3,110,450     5,396,351
 
     Operating expenses:
       Editorial, production
        and distribution 12,683,600    11,797,411    2,487,393     3,469,237
       Promotion and
        selling           8,683,141     7,834,513    1,426,293     1,933,323
       General and
        administrative    5,494,521     5,291,648    1,340,597     1,329,248
       Corporate advertising     --       725,867           --       668,378
       Depreciation and
        amortization        557,802       523,715      132,461       132,095
       Total operating
        expenses         27,419,064    26,173,154    5,386,744     7,532,281
 
     Gain on sale
       of assets          6,702,219            --           --            --
 
     Impairment of
       investment       (2,638,356)            --  (2,638,356)            --
 
     Operating loss     (3,576,397)   (8,502,353)  (4,914,650)   (2,135,930)
 
     Investment and
       other income         170,608     4,309,650       19,151     2,914,904
 
     Net income (loss) $(3,405,789)  $(4,192,703) $(4,895,499)      $778,974
 
     Net income (loss)
       per common share     ($0.34)       ($0.47)      ($0.47)         $0.07
 
     Average number of
       common shares used
       in computing
       net income (loss) per
       common share      10,439,887     9,336,679   10,485,781    11,282,596
 
 

SOURCE Individual Investor Group, Inc.
    NEW YORK, April 2 /PRNewswire/ --
 Individual Investor Group, Inc. (Nasdaq:   IIGP) today announced record revenues
 for the fiscal year ended December 31, 2000 of $19.8 million, an increase of
 12% from 1999 revenues of $17.7 million.  The company reported record revenues
 in 2000 from its print publications operations of $16.6 million, an increase
 of 8% from 1999 revenues of $15.4 million due primarily to record advertising
 and circulation revenues from the company's flagship print publication,
 Individual Investor magazine.  The company also reported record revenues in
 2000 from its online services operations of $3.2 million, an increase of 38%
 from 1999 revenues of $2.3 million due primarily to record advertising
 revenues from the company's flagship online property, individualinvestor.com
 (http://www.individualinvestor.com).  The record revenues in each segment were
 achieved despite the sale in September 2000 of Ticker magazine and
 InsiderTrader.com.  The company received total consideration of $8.0 million
 in connection with the sale of Ticker magazine, InsiderTrader.com, two domain
 names and the issuance of a 250,000-share warrant with an exercise price of
 $2.00 per share.  These assets had accounted for 23% of the company's revenues
 for the nine months ended September 30, 2000.
     The company's operating loss in 2000 improved 58%, to $3.6 million, as
 compared to $8.5 million in 1999.  The improvement is primarily due to a gain
 on sale of assets of $6.7 million and a $2.1 million increase in revenues,
 partially offset by a $2.6 million write-down of the carrying value of the
 company's investments and a $1.2 million increase in operating expenses.  The
 company's net loss in 2000 improved to $3.4 million, or $0.34 per share, from
 $4.2 million in 1999, or $0.47 per share, reflecting investment and other
 income of $0.2 million in 2000 as compared to $4.3 million in 1999.  Most of
 the 1999 interest and other income was derived from the sale of securities the
 company had obtained in connection with equity-for-advertising transactions.
     In 2000, Individual Investor magazine posted a 9% increase in revenue, to
 $13.0 million from $12.0 million in 1999 and achieved record revenues in both
 advertising and circulation revenue for the year.  In 2000,
 individualinvestor.com posted a 37% increase in revenue, to $2.7 million from
 $2.0 million in 1999.  In February 2001, the company launched a new web site,
 SHORTInterest.com (http://www.shortinterest.com), designed to help investors
 make money off the downward movement of stock prices.  Traffic to the site has
 been growing significantly.
     At December 31, 2000, the company has cash and cash equivalents totaling
 $4.7 million.  During 2000, the company did not issue any stock (excluding the
 issuance of less than 90,000 shares to employees through the exercise of
 options).  During 2000, the company decreased the number of shares of common
 stock outstanding by 1.4 million and the number of shares of common stock
 issuable pursuant to outstanding preferred stock, options and warrants by an
 additional 1.0 million.
     Since the beginning of 2000, the company announced important developments
 concerning its intention to generate licensing revenues (with essentially 100%
 gross margin) related to proprietary stock indexes developed by the company.
 In October 2000, the company signed licensing agreements with Nuveen
 Investments and the American Stock Exchange for the creation of an
 exchange-traded fund based upon the company's America's Fastest Growing
 Companies(TM) Index that, upon receipt of necessary regulatory approval, would
 trade on the American Stock Exchange (similar to the SPDR exchange-traded fund
 based upon the Standard & Poor's 500 index and the QQQ exchange-traded fund
 based upon the Nasdaq 100 index).  Once the exchange-traded fund based upon
 the America's Fastest Growing Companies(TM) Index began trading, the company
 would be entitled to receive quarterly licensing payments that would be almost
 100% gross margin as the company would have essentially no marginal expenses
 associated with such revenues.  Nuveen is working to obtain the necessary
 regulatory approval to commence trading of such an exchange-traded fund but
 there can be no assurance that Nuveen will obtain the necessary regulatory
 approval or that the exchange-traded fund based upon the America's Fastest
 Growing Companies(TM) Index will commence trading.  In March 2001, the company
 extended the America's Fastest Growing Companies(TM) index brand with the
 launch of two new stock indexes, the America's Fastest Growing Companies(TM)
 MidCap 300 Index and the America's Fastest Growing Companies(TM) LargeCap
 50 Index.  The company intends to seek to execute license agreements for the
 creation of financial products based upon the America's Fastest Growing
 Companies(TM) MidCap 300 Index and the America's Fastest Growing Companies(TM)
 LargeCap 50 Index, but there can be no assurance that the company will be
 successful in its endeavors to do so.  The company also will explore
 development of additional stock indexes, such as sector indexes, under the
 America's Fastest Growing Companies(TM) brand, but there can be no assurance
 that the company in fact will develop any stock indexes beyond the existing
 three indexes of the America's Fastest Growing Companies(TM) family described
 above.
     "We believe our nascent index-licensing operations could prove to be very
 valuable and we have announced that we are exploring a range of alternatives
 -- including spinning off our index business to capitalize it separately,
 selling revenue participation rights or selling the intellectual property
 outright -- to unlock the value of these operations," said Jonathan Steinberg,
 the company's chairman and chief executive officer.
     After strong growth (as compared to the corresponding quarters of 1999) in
 advertising revenues for Individual Investor magazine and
 individualinvestor.com during the first nine months of 2000, in the fourth
 quarter of 2000 the company experienced a sudden and sharp decline (as
 compared to the fourth quarter of 1999) of advertising revenues.  This
 weakness in advertising -- which was experienced by many other print and
 non-print media properties -- led to revenues from Individual Investor
 magazine, individualinvestor.com and Individual Investor's Special Situations
 Report newsletter (collectively, the "Current Properties") of $3.1 million in
 the fourth quarter of 2000 as compared to revenues from the Current Properties
 of $4.6 million in the fourth quarter of 1999 (with Ticker magazine and
 InsiderTrader.com, the company reported revenues of $5.4 million in the fourth
 quarter of 1999).  Individual Investor magazine and Individual Investor's
 Special Situations Report newsletter recorded revenues of $2.8 million in the
 fourth quarter of 2000 as compared to $3.6 million in the fourth quarter of
 1999 (together with Ticker magazine, the company's print publications
 operations recorded revenues of $4.3 million in the fourth quarter of 1999).
 individualinvestor.com recorded revenues of $0.3 million in the fourth quarter
 of 2000 as compared to $1.0 million in the fourth quarter of 1999 (together
 with InsiderTrader.com, the company's online services operations recorded
 revenues of $1.1 million in the fourth quarter of 1999).
     The company's visibility with respect to advertising revenues in 2001 is
 poor at the date of this press release.  The sudden and sharp decline in the
 advertising climate that commenced in the fourth quarter of 2000 and has
 continued into the first quarter of 2001 could be followed by an equally
 sudden and sharp rebound or by continued weakness.  To address the current
 challenging environment, the company has implemented a number of steps to
 achieve a significant reduction in operating and general and administrative
 expenses.
     The company noted a recent positive development with respect to one of its
 assets.  In January 2001, Tradeworx, Inc. completed a capital raise pursuant
 to which it raised $3.0 million cash, selling shares at a price of $2.54 per
 share, a 134% premium to the value at which the company has recorded the
 1,045,000 shares of Tradeworx it owns.  In accordance with generally accepted
 accounting principles, the company did not write up the value of its
 investment in Tradeworx to partially offset the $2.6 million charge against
 operating earnings the company took in connection with its adjustment of the
 carrying value of its previously-announced investment in VentureHighway.com.
     With the assistance of The Jordan, Edmiston Group, Inc., a media
 investment bank, the company is exploring a range of strategic alternatives to
 enhance shareholder value, including the possible sale of the company.  The
 company believes that its working capital and, if additional resources were
 necessary, the value it believes it could realize from the sale of assets
 and/or securities of the company, should be sufficient to fund its operations
 and capital requirements through 2001.  There can be no assurance, however,
 that the company would be able to sell any of its assets and/or securities or
 that the process of exploring strategic alternatives will result in the
 company entering into any additional transactions or enhancing shareholder
 value.
     "With the recent decline in the stock market, the value of the advice and
 education we offer in print and online -- and hence the value of our media
 operations -- should be even more apparent," said Steinberg.  "We are pleased
 that Individual Investor magazine and individualinvestor.com have consistently
 been ranked as the #1 sources of stock recommendations in print and online,
 based upon one-year returns, according to http://www.validea.com, beating
 Money, SmartMoney, Fortune, Forbes, Business Week, Barron's, Worth,
 Kiplinger's, CNBC.com, MSN MoneyCentral and CNNfn," said Steinberg.
     "Our ability to consistently identify investment opportunities is not
 simply a recent development," Steinberg continued.  "Over nine years, our
 annual Magic 25(TM) portfolios achieved a compounded return of over 730%,
 virtually identical to that of Warren Buffet's Berkshire Hathaway Class A and
 more than 2.75 times that of the S&P 500 or Dow Jones Industrial Average over
 the same time period.  And our recommendations in Individual Investor's
 Special Situations Report posted average annual returns over an eleven-year
 period of 27% -- more than twice the performance of the S&P 500 or Dow Jones
 Industrial Average over the same time period," said Steinberg.
     "This extraordinary achievement of consistently delivering winning
 investment recommendations is unmatched by any of our media competitors and
 gives us a highly defensible franchise," said Steinberg.  "We saw evidence of
 the demand for our content on the newsstand in 2000, during which we achieved
 stronger growth in single copy sales than Money, SmartMoney, Kiplinger's and
 Worth during an up period (six months ended June 30, 2000 compared to six
 months ended June 30, 1999) and tied with Money for the lowest decline during
 a difficult period (six months ended December 31, 2000 compared to six months
 ended December 31, 1999), according to the Audit Bureau of Circulations," said
 Steinberg.  "We also saw evidence of the attractiveness of our products to
 advertisers seeking to reach our affluent, highly-educated audience, as the
 Publishers Information Bureau reported that Individual Investor magazine had
 stronger growth in ad pages in 2000 than Money, SmartMoney, Kiplinger's and
 Worth," said Steinberg.
     "We believe that our current market capitalization does not come close to
 reflecting the fair value of our media operations, our nascent index licensing
 operations and our other assets.  We are committed to achieving the higher
 valuation that we feel is appropriate," concluded Steinberg.
 
     About Individual Investor Group, Inc.
     Individual Investor Group, Inc. is a financial media company with
 complementary print and Internet properties that serve people interested in
 investing and advertisers who want to reach that audience.  The company's
 properties include Individual Investor magazine, individualinvestor.com
 (http://www.individualinvestor.com), SHORTInterest.com
 (http://www.shortinterest.com) and Individual Investor's Special Situations
 Report newsletter.  The company also owns the intellectual property to the
 family of America's Fastest Growing Companies(TM) indexes.  The company has
 licensed the original America's Fastest Growing Companies(TM) Index to Nuveen
 Investments and the American Stock Exchange for the creation of an
 exchange-traded fund based upon the index, which will commence trading on the
 American Stock Exchange (similar to the SPDR based upon the S&P 500 index and
 the QQQ based upon the Nasdaq 100 index) once regulatory approval is obtained.
     For more information about Individual Investor Group, Inc., please visit
 the company's corporate web site at http://www.indi.com.
 
     Important Notice Concerning Forward-Looking Statements
     Except for historical information, the above statements of this press
 release (including without limitation expressions of expectation, belief,
 anticipation or estimation of the company or its management) are
 forward-looking statements that are subject to certain risks and uncertainties
 that could cause actual results to differ materially from those set forth in
 the forward-looking statements.  The forward-looking statements include, but
 are not limited to, statements related to the possibility of successful
 completion of any financing or strategic transaction or enhancement of
 shareholder value; statements related to expected operating results (including
 without limitation revenues, expenses or contribution to overhead) of the
 company's media properties, expected levels of general and administrative
 expenses; and statements related to the potential receipt of regulatory
 approval necessary to permit trading of an exchange-traded fund based upon the
 America's Fastest Growing Companies(TM)  Index, the potential declaration of
 effectiveness of a registration statement with respect to such product, the
 potential execution of licensing agreements related to the America's Fastest
 Growing Companies(TM) LargeCap 50 Index and the America's Fastest Growing
 Companies(TM) MidCap 300 Index or the company's ability to realize value with
 respect to the intellectual property of such indexes.  These risks and
 uncertainties also include the risks detailed in the company's most recent
 Form 10-K and Form 10-Q filed with the SEC (each of which is available from
 the company or at http://www.sec.gov). These forward-looking statements speak
 only as of the date of this press release. After the issuance of this release,
 the company might come to believe that certain forward-looking statements
 contained in this release are no longer accurate. The company shall not have
 any obligation, however, to release publicly any corrections or revisions to
 any forward-looking statements contained in this release.  America's Fastest
 Growing Companies(R) is a registered trademark of Individual Investor Group,
 Inc.
 
                  INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS
 
                                                          December 31,
     ASSETS                                           2000           1999
     Current assets:
       Cash and cash equivalents                  $ 4,694,476    $ 6,437,542
       Accounts receivable (net of allowances
         of $552,609 in 2000 and $419,048 in 1999)  1,754,200      3,019,710
       Investment in discontinued operations           49,302         49,302
       Prepaid expenses and other current assets    1,036,996        864,851
           Total current assets                     7,534,974     10,371,405
     Investments                                    2,678,546      2,638,356
     Deferred subscription expense                    337,245        383,624
     Property and equipment - net                   1,479,105      1,653,659
     Security deposits                                375,580        374,527
     Other assets                                     300,810        836,396
     Total assets                                 $12,706,260    $16,257,967
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
       Accounts payable                           $ 2,534,027    $ 3,024,395
       Accrued expenses                               462,800        716,670
       Deferred advertising revenue                 1,987,067      1,467,210
           Total current liabilities                4,983,894      5,208,275
 
     Deferred advertising revenue                     532,653        938,164
     Deferred subscription revenue                  2,607,407      2,448,591
     Total liabilities                              8,123,954      8,595,030
 
     Stockholders' Equity:
       Preferred stock, $.01 par value,
         authorized 2,000,000 shares,
         7,880 issued and outstanding in 2000 and
         10,000 issued and outstanding in 1999             79            100
       Common stock, $.01 par value;
         authorized 40,000,000
         shares; 8,972,886, issued and
         outstanding in 2000; 10,353,901 issued
         and outstanding in 1999                       89,729        103,539
       Additional paid-in capital                  33,576,719     33,421,542
       Warrants                                       872,052        742,079
       Deferred compensation                         (29,490)      (272,038)
       Accumulated deficit                       (29,926,783)   (26,332,285)
           Total stockholders' equity               4,582,306      7,662,937
 
           Total liabilities and
             stockholders' equity                 $12,706,260    $16,257,967
 
 
                  INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF OPERATIONS
 
                          Year Ended December 31, Quarter Ended December 31,
                               2000          1999         2000          1999
     Revenues:
       Online Services   $3,188,022    $2,308,186      345,209    $1,078,551
       Print
        Publications     16,590,782    15,362,615    2,765,241     4,317,800
       Total revenues    19,778,804    17,670,801    3,110,450     5,396,351
 
     Operating expenses:
       Editorial, production
        and distribution 12,683,600    11,797,411    2,487,393     3,469,237
       Promotion and
        selling           8,683,141     7,834,513    1,426,293     1,933,323
       General and
        administrative    5,494,521     5,291,648    1,340,597     1,329,248
       Corporate advertising     --       725,867           --       668,378
       Depreciation and
        amortization        557,802       523,715      132,461       132,095
       Total operating
        expenses         27,419,064    26,173,154    5,386,744     7,532,281
 
     Gain on sale
       of assets          6,702,219            --           --            --
 
     Impairment of
       investment       (2,638,356)            --  (2,638,356)            --
 
     Operating loss     (3,576,397)   (8,502,353)  (4,914,650)   (2,135,930)
 
     Investment and
       other income         170,608     4,309,650       19,151     2,914,904
 
     Net income (loss) $(3,405,789)  $(4,192,703) $(4,895,499)      $778,974
 
     Net income (loss)
       per common share     ($0.34)       ($0.47)      ($0.47)         $0.07
 
     Average number of
       common shares used
       in computing
       net income (loss) per
       common share      10,439,887     9,336,679   10,485,781    11,282,596
 
 SOURCE  Individual Investor Group, Inc.