The Knot Reports First Quarter 2003 Financial Results; Revenue Grows by 41% and Net Loss is Reduced by 92% Compared to 2002

Business Wire, May 13, 2003

                            The Knot Inc.
                     Consolidated Balance Sheets
                            (in thousands)

                                               March 31,  December 31,
                                                 2003        2002
                                               ----------------------
                                              (Unaudited)  (Audited)
Assets
Current assets:
 Cash and cash equivalents                      $ 9,413     $ 9,306
 Restricted cash                                    253         252
 Accounts receivable, net                         3,771       4,791
 Inventories                                      1,493       1,292
 Deferred production and marketing costs            206         444
 Other current assets                               741         556
                                                -------------------
Total current assets                             15,877      16,641

Property and equipment, net                       1,974       1,948

Intangible assets, net                            8,809       8,834
Other assets                                        347         352
                                                -------------------
Total assets                                    $27,007     $27,775
                                                ===================

Liabilities and stockholders' equity
Current liabilities:
 Accounts payable and accrued expenses          $ 4,883     $ 5,113
 Notes payable                                        -           -
 Deferred revenue                                 5,489       5,827
 Current portion of long-term debt                   76         138
                                                -------------------
Total current liabilities                        10,448      11,078
Long term debt                                      235         235
Other liabilities                                   474         445
                                                -------------------
Total liabilities                                11,157      11,758

Stockholders' equity:
 Common stock                                       184         184
 Additional paid-in-capital                      64,400      64,400
 Deferred compensation                              (27)        (55)
 Accumulated deficit                            (48,707)    (48,512)
                                                -------------------
Total stockholders' equity                       15,850      16,017
                                                -------------------
Total liabilities and stockholders' equity      $27,007     $27,775
                                                ===================


                            The Knot Inc.
                Consolidated Statements of Operations
               (in thousands, except per share amounts)

                                                Three months ended
                                                     March 31,
                                              ----------------------
                                                  2003       2002
                                              ----------------------
                                              (Unaudited) (Unaudited)
Net revenues:
Sponsorship and advertising                     $ 2,859     $ 1,313
Merchandise                                       3,777       3,061
Publishing and other                              2,029       1,758
                                                -------------------
Total net revenues                                8,665       6,132

Cost of revenues                                  2,930       2,392
                                                -------------------

Gross profit                                      5,735       3,740

Operating expenses:
Product and content development                   1,072       1,034
Sales and marketing                               2,862       2,615
General and administrative                        1,739       2,038
Non-cash compensation                                20          54
Non-cash sales and marketing                          -         163
Depreciation and amortization                       253         342
                                                -------------------
Total operating expenses                          5,946       6,246

Loss from operations                               (211)     (2,506)

Interest income, net                                 16          15
                                                -------------------

Net loss                                       ($   195)   ($ 2,491)
                                                ===================

Loss per share - basic and diluted:            ($  0.01)   ($  0.15)
                                                ===================

Weighted average number of shares
 used in calculating basic and diluted
 loss per share                              18,394,233  16,540,836
                                             ======================