Investor Relations

Zap.Com Reports 1999 Financial Results


ROCHESTER, N.Y.--(BUSINESS WIRE)--March 30, 2000--The Zap.Com Corporation (OTCBB: ZPCM), an Internet company dedicated to building the ZapNetwork, a network of independent Web sites, today reported that it had a net loss of $3.5 million, or $0.07 cents per share, in the year ended December 31, 1999.

Avram Glazer, President and Chief Executive Officer of Zap.Com, said 1999 was an exciting year for Zap.Com. "In 1999 Zap.Com became an independent, publicly traded company and it built the foundations for the ZapNetwork," Mr. Glazer said. "Our focus for 2000 is to grow the ZapNetwork by signing up high-quality web sites with compelling audience traffic.

"We also look forward to enhancing the functionality of our ZapBox - Zap.Com's proprietary web application for Internet users and advertisers. The ZapBox gives users portal-like functionality, enabling them to search the Web and access current news, sports scores, weather and other information directly on their favorite ZapNetwork sites rather than leaving those sites for a large portal."

The company had no revenues in 1999, as it began the process of preparing its network for launch. Its operating expenses totaled $3.4 million for the year and included $1.7 million of sales and marketing expenditures and $1.7 million of general and administrative costs.

About Zap.Com

Zap.Com was founded by Zapata Corporation (NYSE:ZAP) to create and operate the ZapNetwork, a network of independent Web sites that attract a diverse audience of Internet users. Its goal is to make the ZapNetwork a leading advertising and e-commerce platform by aggregating Internet users who frequent Web sites that are often overlooked by Internet advertisers. The company plans to generate revenues by a variety of means including advertising, sponsorships and e-commerce. The ZapNetwork currently includes:

- Zap.Com - - an outstanding one-stop guide to the Internet offering exceptional search, directory capabilities and more.

- Word - - An award winning webzine - one of the Web's oldest - featuring personal stories, quirky humor and more.

- Charged - - The webzine of extreme leisure.

- Pixeltime - - A proprietary Java-based drawing system that is a unique tool for community building and user-created content. Statements in this press release that are not strictly historical are "forward-looking" statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, which may cause the company's actual results in the future to differ materially from expected results. These risks and uncertainties include, among others: the Company's limited operating history; the risks inherent in establishing a new business in the Internet industry; the companies ability to successfully build the ZapNetwork; the lack of a present source of revenues; the extent of the losses and negative cash flows that the Company anticipates; the Company's unproven business model; the ability of the Company to successfully finalize development of future releases of its Internet banner, the ZapBox; risks associated with the Company's dependence on the Internet; intense competition; the extent to which a trading market develops in its stock; the Company's ability to raise capital if necessary; the Company's ability to maintain intellectual property protection for its proprietary products (including its ability to successfully obtain a patent for the ZapBox and related matters), to defend its existing intellectual property rights from challenges by third parties, and to avoid infringing intellectual property rights of third parties; unforeseen operating risks; the Company's ability to secure and maintain agreements with third parties for various services and other functions. These risks are qualified in their entirety by cautionary language and risk factors set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Registration Statement on Form S-1 filed with the SEC on December 30, 1999, as amended. The Company assumes no obligation to update the information included in this press release. *T

                         ZAP.COM CORPORATION
                     (A DEVELOPMENT STAGE COMPANY)

                            BALANCE SHEETS

                                          December 31,    December 31,
                                              1998            1999
                                              ----            ----
Current assets:
Cash and cash equivalents                $         --    $  7,579,363
Interest receivable                                --          45,914
Prepaid assets and other receivables               --         549,466
                                         ------------    ------------

     Total current assets                          --       8,174,743
Property and equipment, net                        --          41,424
Capitalized software costs                         --         272,581
                                         ------------    ------------

        Total assets                     $         --    $  8,488,748
                                         ------------    ------------

Current liabilities:
Accounts payable                         $         --    $    299,538
Due to related party                               --          39,588
Accrued liabilities                                --         410,179
Amounts due to stockholder and affiliates         783           3,900
                                         ------------    ------------

     Total current liabilities                    783         753,205
                                         ------------    ------------

        Total liabilities                         783         753,205
                                         ------------    ------------

Commitment & Contingencies
 Stockholders' Equity (Deficit):
   Common stock, $.001 par value,
     1,500,000,000 shares authorized,
     49,450,000 shares issued and
     outstanding as of December 31, 1998;
     $.001 par value, 1,500,000,000 shares
     authorized, 50,000,000 issued and
     outstanding as of December 31, 1999           10          50,000
   Additional paid in capital                      --      21,549,996
   Preferred stock, $0.01 par value,
     150,000,000 shares authorized,
     0 shares issued and outstanding
     as of December 31, 1998 and 1999              --              --
   Deficit accumulated during
     the development stage                       (793)     (3,535,733)
        Deferred consulting expense                --     (10,328,720)
                                         ------------    ------------

     Total stockholders' (deficit) equity        (783)      7,735,543
                                         ------------    ------------

     Total liabilities and
       stockholders' equity              $         --    $  8,488,748
                                         ============    ============

                          ZAP.COM CORPORATION
                     (A DEVELOPMENT STAGE COMPANY)

                       STATEMENTS OF OPERATIONS

                                From April 2,             From April 2,
                                1998 (date of             1998 (date of
                                  inception)    For the     inception)
                                   through     Year Ended    through
                                 December 31, December 31, December 31,
                                     1998         1999         1999
                                 -----------  -----------  -----------

Revenues                         $        --  $        --  $        --
   Cost of revenues                       --      141,160      141,160
                                 -----------  -----------  -----------
   Gross profit                           --     (141,160)    (141,160)
Operating expenses:
   Product development                    --       52,388       52,388
   Sales and marketing                    --    1,696,539    1,696,539
   General and administrative            793    1,690,907    1,691,700
   Depreciation                           --        8,105        8,105
                                 -----------  -----------  -----------
     Total operating expenses            793    3,447,939    3,448,732
                                 -----------  -----------  -----------
     Loss from operations               (793)  (3,589,099)  (3,589,892)
Interest income                           --       54,159       54,159
                                 -----------  -----------  -----------
Loss before income taxes                (793)  (3,534,940)  (3,535,733)
Benefit from income taxes (Note 7)        --           --           --
                                 -----------  -----------  -----------
Net loss                         $      (793) $(3,534,940) $(3,535,733)
                                 ===========  ===========  ===========
Per share data (basic and diluted):
Net loss per share               $      (.00) $      (.07) $      (.07)
                                 ===========  ===========  ===========
   Average common shares
     and common share
     equivalents outstanding      49,450,000   49,525,342   49,493,036
                                 ===========  ===========  ===========

     CONTACT: Zap.Com Corporation Investor Relations:
              Lippert/Heilshorn & Associates, New York
              Jerry Meyer, 212/838-3777
Safe Harbor Disclaimer

Certain matters discussed herein, with the exception of historical matters, are forward-looking statements which involve risks and uncertainties. Actual results may differ materially from these statements as a result of changes in external competitive market factors, unanticipated changes in the company's industry, or the economy in general, as well as various other factors, including those discussed herein and those set forth in the Company's most recent Annual Report on Form 10-K.

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