The Knot Reports Second Quarter 2003 Financial Results; Profitability Represents a Company Milestone

Business Wire, August 13, 2003

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 13, 2003

The Knot, Inc. (OTCBB: KNOT.OB, www.theknot.com), the nation's leading wedding resource, today reported financial results for its second quarter ended June 30, 2003.

SECOND QUARTER 2003 RESULTS

The Knot reported net revenues of $10.1 million for the second quarter of 2003, an increase of 23% from net revenues of $8.3 million for the comparable prior year quarter. National and local online advertising revenues increased by just over 100% while merchandise revenue rose by 19% over the prior year period. The continued growth in these revenue sources more than offset a decline in publishing revenue.

The Knot reported income for the second quarter of 2003 of $772,000, or $0.04 per basic and diluted share, as compared to a net loss of $1.1 million, or $0.06 per basic and diluted share, in the second quarter 2002. Total operating expenses for the second quarter were $6.1 million, a 6% decrease from the comparable prior year period.

"Our achievement of profitability in the second quarter was a milestone for the Company," said David Liu, CEO of The Knot. "Having attained this goal, we seek to continue to build our existing revenue streams while exploring new revenue opportunities in bridal and complementary markets."

For the six months ended June 30, 2003, The Knot reported net revenues of $18.8 million and net income of $576,000, or $0.03 per basic and diluted share, compared to net revenues of $14.4 million and a net loss of $3.6 million, or $0.20 per basic and diluted share, for the comparable prior year period.

As of June 30, 2003, The Knot's cumulative membership totaled over 4.1 million, a 38% increase over the approximately 3 million members at the end of June 2002. The Knot also reported over 76 million average monthly page views on its Web site in the second quarter 2003, which is more than 50% greater than the nearly 50 million average monthly page views recorded for the comparable 2002 period.

THE KNOT'S RECENT HIGHLIGHTS

During the second quarter of 2003, The Knot continued to expand its core online services for to-be-weds and enhance its leadership position in the bridal market.

In June 2003, The Knot announced and launched its partnership with Evite (www.evite.com), the leading free online event planning service, to create one of the Web's most convenient event-planning tools. Through The Knot's interactive Guest List Manager, couples can instantly take advantage of Evite's tools and send invitations, track RSVPs and communicate registry details to guests, all with the click of a mouse. Additional features allow other event planners, e.g. the maid of honor, to use this service to send invitations, manage RSVPs, or chat with partygoers. This tool also allows event planners to provide guests a direct link to the wedding couples' gift registry within the event invitation.

Also in June 2003, The Knot launched its groundbreaking editorial feature, The Knot Video Runway (www.theknot.com/videorunway), a new broadband application, which is the first subscription-based online resource of its kind. The Knot Video Runway gives fashion-obsessed brides in-action, 360-degree access to more than 60 prestigious wedding gown fashion shows from New York and Chicago's Bridal Fashion Weeks and provides an unprecedented preview of next season's more than 900 wedding gowns well before they arrive in salons.

CONFERENCE CALL AND WEBCAST

The Knot will host a conference call with investors at 4:30 p.m. ET today, August 13, 2003, to discuss its second quarter financial results. The conference call will be broadcast live over the Internet on the Investor Relations section of The Knot Web site at http://www.theknot.com/au_corpoverview.shtml. To access the webcast, participants should visit The Knot Web site at least 15 minutes prior to the conference call in order to download or install any necessary audio software. A replay of the webcast will also be archived on The Knot Web site approximately 2 hours after the conference call ends until (date, 2003).

ABOUT THE KNOT INC.

The Knot Inc. (OTCBB: KNOT; www.theknot.com; AOL keyword: weddings) is one of the world's leading wedding media and services companies, providing today's to-be-weds with comprehensive wedding planning information, interactive tools, and resources. Its award-winning website, TheKnot.com, is the leading online wedding destination and wedding content provider to America Online, MSN and Yahoo!.

The Knot also offers a diverse collection of wedding-planning print publications. The Knot produces a national publication, The Knot Magazine, and, through its subsidiary Weddingpages, Inc., publishes WEDDINGPAGES, regional wedding magazines in 18 U.S. markets. In addition, the Company publishes a wedding-planning book trilogy with Random House's Broadway Books and a gift book series with Chronicle Books. The Knot is based in New York and has several other offices across the country.

This release may contain projections or other forward-looking statements regarding future events or the future financial performance of The Knot. These statements are only predictions and reflect the current beliefs and expectations of The Knot. Actual events or results may differ materially from those contained in the projections or forward-looking statements. It is routine for internal projections and expectations to change as the quarter progresses, and therefore it should be clearly understood that the internal projection and beliefs upon which The Knot bases its expectations may change prior to the end of the quarter. Although these expectations may change, The Knot will not necessarily inform you if they do. The Knot's policy is to provide its expectations not more than once per quarter, and not to update that information until the next quarter. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation, (i) The Knot's unproven business model and limited operating history, (ii) The Knot's history of losses (iii) the significant fluctuation to which The Knot's quarterly revenues and operating results are subject, (iv) the seasonality of the wedding industry and (v) other factors detailed in documents The Knot files from time to time with the Securities and Exchange Commission, including its recent filings on Forms 10-K and 10-Q. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.