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FortuneCity.com Inc. reports Q2 2002 Operating and Financial Results

New York, August 29, 2002 — FortuneCity.com Inc. ("FortuneCity") announced today operating and financial results for the first six months of 2002

• Net loss, without restructuring and impairment charges, was reduced by 52% from $ 10.7 million 1 H 2001 to $ 5.1 million in 1 H 2002
• First Half operating expenses reduced 52% compared to the same period in 2001 from $9.2 million to $4.4 million
• Q2 2002 Revenues increased 39% to $ 884,557 compared to $ 637,398 in Q1 2002

Revenues for the first six months of 2002 declined in comparison to the first six months of 2001 as a result of overall decline in advertising expenditures. Despite lower revenues for 1 H 2002, the Company's strict cost control activities reduced the cash burn rate and the net loss. The cash burn was $ 3.5 million in 1 H 2002, 55% lower than H1 2001.

FortuneCity continues to diversify revenue streams and is committed to a business model based on three product components: Interactive media sales, paid web hosting and domain name registration. FortuneCity's interactive media sales group, operating as Ampira Media, generates advertising revenue from advertising impressions on the FortuneCity network as well as third party web site publishers, Ampira Hosting markets reliable shared server hosting at competitive rates to small enterprises. V3 markets top level domains, sub-domains and email solutions to small businesses and individuals, and the original FortuneCity brand offers basic homepage building services.