National Lampoon Partners with Capazoo.com

Business Wire, Dec 18, 2007

LOS ANGELES -- National Lampoon, Inc. (AMEX:NLN), the most widely recognized brand in comedy, today announced that it has formed a partnership with Capazoo.com, (www.capazoo.com) the newest and most unique social networking and online entertainment Web site. The partnership is based in part on Capazoo's ground-breaking business model empowering its members and partners to generate real revenues based on their content and site participation. In this deal, National Lampoon will provide online video content and branded marketing opportunities across its various entertainment properties to Capazoo. As part of the deal National Lampoon has also acquired an equity stake in Capazoo. The announcement was made today by Daniel S. Laikin, President and CEO, National Lampoon.

National Lampoon will create branded entertainment opportunities for Capazoo across its diverse entertainment platforms, providing Capazoo unrivalled reach into the college market. National Lampoon's entertainment platforms encompass traditional and non-traditional media including the "National Lampoon Humor Network", National Lampoon feature films, "National Lampoon Radio Network", "National Lampoon College" in-dorm room cable network, as well as on and off campus National Lampoon live events.

The first collaboration between the two companies is a Capazoo-sponsored series of exclusive live stand-up comedy to be released later this year on all National Lampoon media platforms.

National Lampoon's history and brand recognition in the key 18-24 year old demographic make it an ideal marketing partner for companies looking to build awareness in this coveted audience.

All of National Lampoon's new Internet programming will be made available on Capazoo through the National Lampoon channel at http://www.capazoo.com/nationallampoon. Initial programming includes National Lampoon's hugely popular webisodes, which have drawn praise from top critics nationwide, as well as National Lampoon's SpinCycle mashimations and the Fat Guy Nation series.

"We are excited to be working with Capazoo," said Laikin. "This partnership illustrates the strength of the National Lampoon brand today. We can provide partners with tremendously popular content as well as unrivalled access to a key demographic through our varied entertainment platforms. The unique membership-driven economy model of Capazoo represents a major step forward in social networking that will benefit not only National Lampoon, but our entire audience both on and off the Web."

Grant Carter, Capazoo.com President said: "As we move to change the face and structure of social networking and online entertainment, the strength and worldwide recognition of the National Lampoon brand and their unparalleled reach to a key demographic make this an ideal marriage on many levels. We are proud to welcome National Lampoon as our partner in this endeavor."

About National Lampoon

National Lampoon, Inc. (AMEX:NLN) has been a dominant force in the US comedy world for almost 40 years, and is currently active in a broad array of media and entertainment segments. These include feature films, television programming, online and interactive entertainment, home video, audio, and book publishing. The Company also owns interests in all major National Lampoon properties, including National Lampoon's Animal House, the National Lampoon Vacation series and National Lampoon's Van Wilder. National Lampoon reaches nearly one in four of all 18 to 24 year old college students in America today. The Company has three core operating divisions: National Lampoon Films, which includes production along with theatrical and video distribution of feature films; College Marketing Division; and National Lampoon Networks, providing humor content through a number of platforms. These include its National Lampoon College TV network, the National Lampoon Humor Network - the most trafficked humor sites on the web, Toga TV.com - the company's broadband channel, and the new National Lampoon Video Network, which includes channels on YouTube, AOL, Yahoo, Joost, and a number of digital video platforms across the Internet. These are all anchored by the award winning comedy website www.nationallampoon.com

About Capazoo.com

Capazoo.com is a new and unique Social Network and Entertainment site that combines the industry's most popular elements. The site blends videos, photos, music and blogging with a wide range of entertainment, celebrities, personal services and the ability to meet and connect with friends in a single destination. Capazoo.com is the first online Community with its own Member-driven economy, empowering Members to gain both personal recognition and to generate real money through their participation in site features. Using Zoops - Capazoo points that can be converted to real cash - Members can Tip and get Tipped for their content. Members also earn money by referring friends who join Capazoo, and by sharing in Capazoo's advertising revenue and corporate profits. Simply put, Capazoo Members earn real rewards from their virtual creations at www.capazoo.com