Interspace Enterprises (fka ITET)

[grw5]

Press Release
Interspace Enterprises Announces Letter of Intent to Acquire Randombet.com
Interspace Will Acquire New Gaming Portal Randombet.com, the First Ever Internet Gaming Experience to Generate Random Bets for Players
LA JOLLA, Calif.--(BUSINESS WIRE)--July 31, 2001-- Interspace Enterprises Inc. (OTCBB:ITET - news), owner and operator of PlanetLotto.com, announced today that it has signed a letter of intent to acquire Randombet.com, the U.K.-based gaming portal that provides a revolutionary randomizing element to the online betting experience.

The announcement was made today by Daniel P. Murphy, founder and CEO of Interspace Enterprises.

Under the letter of intent, the terms and conditions of the agreement will be determined at a later date and is subject to confirmation of shareholder approval and approval by regulatory authorities, including the takeover panel of the U.K.

Murphy commented, ``After weeks of negotiations, we have agreed in principle to acquire randombet.com and we are very excited. This will enable Interspace Enterprises and PlanetLotto to have a strong presence in the U.K. With randombet's partnership with Msn.uk and Kevin Keegan as their non-executive director and spokesperson, we view this as a strategic opportunity for both PlanetLotto and randombet.com. randombet.com is a new and exciting gaming company that stands out because of its unique business model, which enables even the novice gaming enthusiast the chance to participate by incorporating random elements, much like a lottery, all of which, will broaden randombet.com's exposure and appeal.''

In May 2001, randombet.com signed an exclusive partnership with Msn.co.uk, the U.K. arm of Microsoft's Web portal. The company will be featured on MSN's Sports Channel, where the 11 million unique users who visit MSN.co.uk each month will be able to make bets on a wide range of sporting, financial and entertainment events.

About Interspace Enterprises Inc.

Interspace Enterprises Inc., which was founded in 1998, created PlanetLotto.com, to erase the geographic boundaries that currently fragment the world lottery market, which generated $130 billion in sales in 2000. By visiting the PlanetLotto.com site (http://www.planetlotto.com) and purchasing a lottery ticket, people from around the globe have the opportunity to participate in a worldwide Internet lottery with the chance to win millions of dollars. PlanetLotto.com's inaugural draw is scheduled for fall, 2001.

About randombet.com

Launched in February 2001, randombet.com has been constructed using the latest Microsoft® technology(2) which not only allows high-speed access -- enabling hundreds of thousands of players to place bets at the same time -- but also provides a revolutionary randomizing element to the online betting experience. All players have to do to place a bet is open an account on site and submit their card details with a minimum deposit of (pound)10. They will then be free to try their luck on the event of their choice by betting any sum between (pound)1 and (pound)1,000. randombet.com recently signed up Kevin Keegan as a non-executive director. Keegan is one of the most famous professional athletes in U.K. history.

Except for the historical matters contained herein, the matters discussed in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties that may affect Interspace Enterprises, Inc. and its subsidiaries' business and prospects and cause actual results to differ materially from these forward-looking statements. Among the factors that could cause actual results to differ are Interspace Enterprises, Inc.'s limited operating history; competition; low barriers to entry; reliance on strategic relationships; rapid technological changes; inability to complete transactions on favorable terms and those risks discussed in the company's filings with the Securities and Exchange Commission.

For more information, please visit the company Web site at http://www.interspaceenterprises.com or call Interspace Enterprises Investor Relations (Matt Robinson) at 858/456-3539. For more information about randombet.com, please visit their Web site at http://www.randombet.com.


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Contact:

Interspace Enterprises Inc., La Jolla
Matt Robinson, 858/456-3539
Fax: [phone]
[e-mail]
http://www.interspaceenterprises.com