Linda McMahon held the Advisory/WWFE 1st Quarter Conference call this morning. Myself and Calvin listened in and took these notes:

Tom Gibbons opened the floor to Linda McMahon to start the call.

Linda McMahon, CEO:
They have had a challenging 1st quarter. Some of their advertising plans have been pushed out to next year. The economy hasn’t helped them [as with most companies]. A large part of their growth will be on their new brand [wcw/ecw].

She does fear that Direct TV will hurt their growth plan, but they are looking into other solutions.

Ratings over the last few weeks.
Raw 17% increase
Smack 13% increase

She says the Alliance angle is successful based on the ratings. They are going to create a parallel brand. They are just not sure if the second brand will be able to stand on their own feet.

They are planning on pushing more in overseas markets over the next few years.

Expects the announcement of a WWF office in London. Soon. This will springboard more overseas activity.

They are looking into more programming venues. The softness in attendance is centered on house shows.

The ratings for Tough Enough have exceeded their expectations. They are in
the process of discussing a second season for the show. Tough Enough is the highest rated Thursday night programming for men between 18 and 34.

Overall economy has affected WWF concerning advertising, much like everyone
else. 50-60% of their advertising is booked for the year showing the WWF is doing better than some of their peers in the marketplace.

She is disappointed that the court didn’t give them the chance to ask questions or get into more detailed discussions with the World Wildlife Foundations. They will appeal the court’s decision in Oct.

Financial Discussion with Auggie Liguoir, EVP & CFO:

Televised events decreased by 4 million. They feel some is that they have decreased the events from last year.

Revenues for the three events were increased from last year.
PPV Buys:
Judgement Day - 350,000
King of the Ring - 400,000
Invasion - 680,000

UK events buys were increased by 40,000.

MTV has had difficulty in selling ad inventory for Sunday Night Heat. This has hurt more than expected and they have talked to MTV about the decrease.

Shopezone revenues are now being reported in the merchandise section of the income statement.

Home video revenues decreased by about 17%.

Back to Linda for Questions and Answers with dial-in listeners:

Will the WWF looking into purchasing another hotel or operations in Vegas?
Not ruled out but current moment not engaged in that process.

Cash and accounts receivable were left out of the press releases; what are those figures? Cash -- 262M and AR – 63M

Plans for Excess show – begins this Saturday night. HHH will be a guest. This will be a Hybrid of their Sat. and Sun. morning shows. The show will be live from their studio. Telephone calls and web activity will be incorporated. Live footage, backstage prompts and on the road features will be mixed into the shows. Live interaction with the fans will be the key differential. Trish and Coach will be the main hosts.

CPM basis comparison for Excess? Same average CPM but demographic will increase.

Direct TV Impasse? – What are your plans to disturbing ppv with this loss? And what is the deeper discussion of the loss of direct tv? Linda said they will feel an impact in Sept of over 1m $. They want to rectify the problem with direct TV. They are not sure if they can. They have really tried to reach out to them. The actual suit is in part about fraud. DirectTV said the WWFE is not holding up their part of the agreement. They say the WWF is treating them as a distributor instead of a retailer. (Treating them as if they are IN Demand). It has been a difficult road because DirecTV is simply wrong in their arbitrations.

Increased licensing overseas? Integrated sponsorships, more merchandise sales overseas, live shows, basically beefing up all aspects of WWFE in the overseas market. (The increase will be from 5 to 25 million –over the next few years). Cross promotion with Manchester United coming in November and December to
help increase their goals internationally.

Scoop on Michael B. Solomon purchasing shares? Linda says Solomon has been an investor in WWF for quite some time. He has been a strong supporter in the growth and development of the WWFE. He wanted to buy a portion of Vince’s personal shares. 1.9M shares were sold to Solomon. [More on this in recent press releases.]

General timetable for WWF / WCW as separate entities? Shooting for sometime in the first part of 2002 to separate promotions.

Does WWF own the rights of ECW, whose assets are in bankruptcy? They have the rights to use ECW individuals and have made and offer to buy the assets. WWF has the rights to use the ECW brand until the trustee reaches a conclusion.

How long will it take to bring up the losses WWF has taken? Not a variable as what some will think. Volume will aid. They are also increasing their home video sales as well. Moving forward with other licensing. Kmart is taking their product (who has never taken their product before).

Linda thanked everyone for joining and the questions.

End of call.


Replay Information from WWF:
When: From: Thursday August 23, 2001 @ 1:00 PM EST
To: Friday August 24, 2001 @ 1:00PM EST
Domestic US Callers: 800-633-8284
International Callers: 858-812-6440
Reservation Number: # 19551910