CNET Networks Reports First Quarter 2003 Financial Results.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--April 23, 2003

CNET Networks, Inc. (Nasdaq: CNET) today reported that revenues for the first quarter ended March 31, 2003 totaled $56.6 million, a two percent increase compared to revenues of $55.7 million for the same period of 2002. The Company's first quarter operating loss was $14.6 million, versus an operating loss of $33.3 million in the same quarter in 2002. Net loss for the first quarter of 2003 was $15.8 million, or $0.11 per share, compared to a net loss of $31.1 million, or $0.22 per share, for the same period last year.

In the first quarter, CNET Networks' operating loss before depreciation and amortization was $7.4 million, compared to an operating loss before depreciation and amortization of $15.0 million in the first quarter of 2002. Results for 2003 included $5.4 million of realignment costs and for 2002 included $2.9 million of integration and realignment costs. The Company considers operating income (loss) before depreciation and amortization to be an appropriate measure for evaluating performance because it reflects the business operations' ability to generate cash, a key resource necessary to invest in the business, to strengthen the balance sheet, and for other strategic opportunities. (A table that reconciles operating loss before depreciation and amortization to the operating loss found on CNET Networks' GAAP statement of operations can be found on the "Statistical Highlights" page that accompanies this press release.)

"We delivered encouraging top-line results and reduced our operating expenses before depreciation, amortization and realignment costs by 14 percent compared to last year," said Shelby Bonnie, CNET Networks' chairman and chief executive officer. "Our ability to increase revenues year-over-year indicates some stabilization in the technology and broader advertising markets."

"During the quarter, key developments in our enterprise-focused web sites, such as IT Priorities' market-driven content and PowerCenter ad units, exemplified the kinds of innovations that enable us to continue strengthening our relationships with both users and customers," said Bonnie. "While we expect the environment to remain challenging in 2003, we will continue to evolve our core products to enable marketers to become more deeply integrated into buyers' purchase consideration processes. This, along with the continued effective management of our cost structure, positions us for profit margin expansion as revenues increase."

Leading Technology Information Resource for IT and Business Professionals

IT professionals and business decision makers use the internet more than any other resource to find the technology information they need. CNET Networks' enterprise portfolio of Web sites, including ZDNet, TechRepublic, News.com, and Builder.com, remains the online choice of this high quality audience, providing the technology news, research, analysis and services they need to guide their buying decisions.

In addition to maintaining its leading market position during the first quarter as highlighted by its global reach and high customer renewal rate, noteworthy developments included the relaunch of CNET Networks' ZDNet Web site with innovative content and advertising features, and a record-breaking season of prestigious journalism awards and accolades given to News.com. Specific highlights are as follows:

-- CNET Networks ranked as the Internet's 14th largest US online

property(a) and the 10th largest online property worldwide(b).

-- CNET Networks reached an average of over 60 million global

unique users on a monthly basis during the first quarter of

2003(c).

-- In Q1 2003, 89 percent of the company's top 100 U.S.

advertisers renewed from Q4 2002.

-- ZDNet (www.zdnet.com) relaunched with IT Priorities, an

innovative market intelligence-driven feature that

continuously determines topics of highest interest to the

site's users, and ensures that the ZDNet Web site and

newsletters are aligned with the core issues driving the

decisions of IT professionals within medium- to large-sized

businesses. This relaunch also included new PowerCenter ad

units, the most comprehensive of CNET Networks' marketing

units. PowerCenters are sponsored content areas that enable

vendors to engage the audience through features like webcasts,

and provide resources that guide the decision-making process,

such as white papers and case studies.

-- News.com won 10 top awards and honors during a single month

from five prestigious journalism associations, including The

American Society of Magazine Editors (National Magazine Award

nomination), The Society of American Business Editors and

Writers (SABEW Awards), The Western Publications Association

(Maggie Awards), NewsBios (30 Under 30 Awards), and

Investigative Reporters and Editors (IRE Awards).

"The ZDNet relaunch was the first of a series of important developments planned for our enterprise portfolio this year and in 2004, as we continue to identify new and increasingly productive ways to leverage the unique advantages of the internet to bring buyers and sellers together," said Bonnie. "The multitude of awards received by News.com is recognition of our success at maintaining the highest journalism standards as we evolve our sites."

Commerce, Paid Services and Other Revenue Streams

CNET Networks continues to develop revenue-generating opportunities in the areas of shopping services and advice, data licensing, and fee-based services. Key updates from Q1 include:

-- CNET Networks delivered 40 million total sales leads to

customers, or an average of 441,900 leads per day during the

first quarter of 2003.

-- CNET Channel ended Q1 with 277 data licenses, a 47 percent

increase from a year ago.

-- GameSpot Complete ended Q1 with 53,500 paid users, a 13

percent increase from its year-end 2002 membership base of

47,200.

"During 2003, we plan to execute on business strategies that exploit CNET Networks' unique assets and market position. For example, as sophisticated technologies gain mainstream popularity, we will leverage our unparalleled editorial coverage and product reviews to create increasingly relevant and intuitive purchasing guidance and to extend our brand awareness among consumers," said Bonnie.

Investments & Outlook

CNET Networks' balance sheet included cash and marketable debt securities of approximately $142.6 million on March 31, 2003, which includes restricted cash of $18.4 million. For the second quarter of 2003, management estimates revenues will be between $56.5 million and $58.5 million, with an operating loss between $8.6 million and 11.6 million, and an operating loss before depreciation and amortization of between $2 million and $5 million. Second quarter guidance includes possible realignment costs of between $2 million and $4 million, of which a significant element may relate to real estate lease termination expenses in the event that the company concludes settlement negotiations.

Management's financial guidance for 2003 remains unchanged, with full-year revenue estimates in the range of $235 million to $245 million, an operating loss of between $22.4 million and $27.4 million, and operating income before depreciation and amortization of between breakeven and $5 million, including $7.4 million to $9.4 million in realignment costs in the first and second quarters of 2003. (A table that reconciles operating loss before depreciation and amortization guidance to operating loss guidance can be found the "Guidance to the Investment Community" sheet that accompanies this press release.) Revenue estimates are based on the assumption that overall technology advertising spending will not worsen from current levels. Estimates of operating income before depreciation and amortization are based on the assumption that the company will not experience further material asset impairment or business restructuring costs. The company expects this financial outlook will not be updated until the release of CNET Networks' next quarterly financial announcement. The company does, however, reserve the right to update its financial outlook at any time for any reason.

Conference Call and Webcast

CNET Networks will host a conference call to discuss its first quarter financial and operating performance and the company's 2003 business outlook beginning at 5:00 pm ET (2:00 pm PT), today, April 23, 2003. To listen to the discussion, please visit http://ir.cnet.com and click on the link provided for the webcast conference call or dial [phone]. A replay of the conference call will be available through May 1, 2003 via webcast at the URL listed above or by calling [phone] and entering the conference ID number 9737893. The financial news release, and the financial and operating information provided with the release, can also be accessed at http://ir.cnet.com.

Safe Harbor

This press release and its attachments include forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ materially. These forward-looking statements include statements regarding the company's expected financial results in the second quarter and full-year 2003, as well as other statements throughout the release that are identified by the words "expect," "estimate," "target," "believe," "anticipate," "intend" and similar expressions. These statements are only effective as of the date of this release and we undertake no duty to publicly update these forward-looking statements, whether as a result of new information, future developments or otherwise. Reported results should not be considered as an indication of future performance. The risks and uncertainties include: a slowdown in advertising spending on the internet in general, especially in the technology sector, or on CNET Networks' properties in particular, which could be prompted by increased weakness in corporate or consumer spending, or other factors; the failure of existing advertisers to meet or renew their advertising commitments; the loss of advertising revenue to CNET's competitors; the need for further cost reductions, which could increase severance costs and negatively impact operating income and net income or cause such results to differ from company guidance; the risk that projected cost-reduction initiatives will not be achieved due to implementation difficulties or contractual spending commitments that cannot be reduced; the risk that cost reduction efforts will result in a loss of revenues due to a decrease in resources dedicated to generating revenues; the weakening of the US dollar, which could increase operating losses; the acquisition of businesses or the launch of new lines of business, which could decrease the company's cash position, increase operating expense and dilute operating margins; the risk of future impairment of the company's assets or the need to increase the company's reserve attributable to abandoned real estate; the potential for disruptions of service due to the failure of key infrastructure providers; the failure of the company's users to adopt new paid service offerings; the costs associated with initiatives to standardize technology platforms or the company's failure to successfully complete those initiatives; the impact of political and economic conditions due to armed conflict and the threat of future terrorism in the US and abroad; the impact of major health concerns, such as the spread of Severe Acute Respiratory Syndrome ("SARS") on general economic activity; and general risks associated with our business. For risks about CNET Networks' business, see its Annual Form 10-K for the year ended December 31, 2002 and subsequent Forms 8-K, including disclosures under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are filed with the Securities and Exchange Commission and are available on the SEC's website at www.sec.gov.

About CNET Networks, Inc.

CNET Networks, Inc. (www.cnetnetworks.com) is the leading global media company informing and connecting the buyers, users and sellers of technology. The company's product portfolio includes top brands CNET, ZDNet, TechRepublic, Builder.com, News.com, GameSpot, Download.com, and mySimon, as well as Computer Shopper magazine, and CNET Channel. With a strong presence in the US, Asia and Europe, CNET Networks has operations in 16 countries.

Consolidated Statements of Operations
Unaudited
(000s, except share and per share data)

                                              Three Months Ended
                                                   March 31,
                                             2003           2002

Revenues
  Internet                              $       42,049 $       43,380
  Publishing                                    14,539         12,272
    Total revenues                              56,588         55,652

Operating expenses:
  Cost of revenues                              36,201         37,135
  Sales and marketing                           17,717         20,754
  General and administrative                    10,046         12,759
  Depreciation                                   5,612          6,241
  Amortization of intangible assets              1,604         12,059
    Total operating expenses                    71,180         88,948

    Operating loss                             (14,592)       (33,296)

Non-operating income (expense):
  Realized gains on sale of investments              -          2,336
  Realized losses on sale or impairment
   of investments                                    -         (7,665)
  Interest income                                  673          1,372
  Interest expense                              (1,769)        (2,778)
  Other                                              5             (3)
    Total non-operating income (expense)        (1,091)        (6,738)
    Loss before income taxes                   (15,683)       (40,034)

    Income tax expense (benefit)                   146         (8,984)

        Net loss                        $      (15,829)$      (31,050)

Basic and diluted net loss per share    $        (0.11)$        (0.22)

Shares used in calculating basic and
 diluted net loss per share                139,256,081    138,668,755



Consolidated Balance Sheets
Unaudited
(000s, except share data)

                                       March 31,        December 31,
                                         2003               2002
Assets
Current Assets
 Cash and cash equivalents         $        56,057             47,199
 Investments in marketable debt
  securities                                13,957             14,239
 Accounts receivable, net                   43,461             56,064
 Other current assets                       16,976             16,789
  Total current assets                     130,451            134,291

 Restricted cash                            18,400             18,067
 Investments in marketable debt
  securities                                54,233             65,602
 Property and equipment, net                59,694             62,893
 Other assets                               20,957             21,406
 Intangible assets, net                     14,336             15,886
 Goodwill                                   59,162             59,150
  Total assets                     $       357,233            377,295


Liabilities and stockholders' equity
Current liabilities:
 Accounts payable                  $         7,334              6,572
 Accrued liabilities                        58,560             62,833
 Current portion of long-term debt             205                220
  Total current liabilities                 66,099             69,625

Non-current liabilities
 Long-term debt                            117,777            117,738
 Other long term liabilities                 3,092              3,875
  Total liabilities                        186,968            191,238

Stockholders' equity:
  Common stock; $0.0001 par
   value; 400,000,000 shares
   authorized; 139,338,515
   outstanding at March 31, 2003
   and 139,251,879 outstanding
   at December 31, 2002                         14                 14
 Notes receivable from
  stockholders                                (397)              (397)
 Additional paid-in-capital              2,699,154          2,698,980
 Accumulated other comprehensive
  income                                   (13,948)           (13,811)
 Treasury stock, at cost                   (30,428)           (30,428)
 Retained deficit                       (2,484,130)        (2,468,301)
  Total stockholders' equity               170,265            186,057
  Total liabilities and
   stockholders' equity            $       357,233            377,295




Statements of Cash Flows
Unaudited
(000s)

                                        Three Months Ended March 31,
                                            2003            2002
Cash flows from operating activities:
Net Loss                                    $(15,829)       $(31,050)
Adjustments to reconcile net loss to
 net cash used in operating
 activities:
  Depreciation and amortization                7,216          18,379
  Asset impairment and disposals                  83            (126)
  Deferred taxes                                   -         (14,065)
  Noncash interest                               195             254
  Allowance for doubtful accounts                880           2,574
  (Gain) loss on sale and impairment
   of marketable securities and
   privately held investments                      -           5,329
  Changes in operating assets and
   liabilities, net of acquisitions
    Accounts receivable                       11,723             284
    Other assets                                (848)          1,836
    Accounts payable                             762           3,761
    Accrued liabilities                       (4,288)        (10,788)
    Other long-term liabilities                 (718)           (547)
    Foreign currency translation gain
     (loss)                                       78          (1,954)
           Net cash used in operating
            activities                          (746)        (26,113)

Cash flows from investing activities:
 Purchase of marketable debt
  securities                                  (4,995)        (47,664)
 Proceeds from sale of marketable debt
  securities                                  16,982          36,223
 Proceeds from sale of marketable
  equity investments                               -             114
 Proceeds from sale of (investments
  in) privately held companies                     -           3,000
 Capital expenditures                         (2,496)         (4,842)
           Net cash provided by (used
            in) investing activities           9,491         (13,169)

Cash flows from financing activities:
 Payments received on stockholders'
  notes                                            -             149
 Net proceeds from employee stock
  purchase plan                                  174             274
 Net proceeds from exercise of options
  and warrants                                     -           3,130
 Principal payments on borrowings               (107)            (58)
           Net cash provided by
            financing activities                  67           3,495

Net increase in cash and cash
 equivalents                                   8,812         (35,787)
Effect of exchange rate changes on
 cash and cash equivalents                        46             (22)
Cash and cash equivalents at the
 beginning of the period                      47,199          93,439
Cash and cash equivalents at the end
 of the period                               $56,057         $57,630



Segments
Unaudited
(000s)

CNET's primary areas of measurement and decision-making include
three principal business segments - U.S. Media, International Media
and Channel Services. U.S. Media consists of an online network
including sites providing sources of technology information, as well
as shopping services and a technology print publication providing
technology news and information. International Media includes the
delivery of online technology information and several technology print
publications in non-U.S. markets. Channel Services includes a product
database licensing business and an online technology marketplace for
resellers, distributors and manufacturers. Management believes that
segment operating income (loss) before depreciation and amortization
is an appropriate measure of evaluating the operating performance of
the company's segments. However, segment operating income (loss)
before depreciation and amortization should not be considered a
substitute for operating income (loss), cash flows or other measures
of financial performance prepared in accordance with generally
accepted accounting principles.


                             Three months ended March 31, 2003
                        U.S.    Inter-  Channel
                        Media  national Services   Other  (d)  Total

Revenues              $45,792   $6,767   $4,029        $-     $56,588

Operating expenses     44,355    9,926    4,262    12,637      71,180

  Operating income
   (loss)              $1,437  $(3,159)   $(233) $(12,637)   $(14,592)


                             Three months ended March 31, 2002
                        U.S.    Inter-  Channel
                        Media  national Services   Other  (d)  Total

Revenues              $47,103   $5,080   $3,469        $-     $55,652

Operating expenses     54,164    8,207    5,349    21,228      88,948

  Operating loss      $(7,061) $(3,127) $(1,880) $(21,228)   $(33,296)



                 Guidance to the Investment Community

$ in millions, except
 per share                Q1-03     Q2-03 estimate   FY 2003 estimate
                          Actual      Low - High        Low - High

Revenues                  $56.6     $56.5 - $58.5      $235 - $245

Operating expense before
 depreciation &
 amortization           $64.0 (e)  $61.5 - $63.5 (f)  $235 - $240 (g)

Operating income (loss)
 before depreciation &
 amortization           ($7.4) (e)  ($5) - ($2) (f)     $0 - $5 (g)

Depreciation expense      ($5.6)        ($5.5)            ($21.0)

Amortization expense      ($1.6)        ($1.6)            ($6.4)

Operating income (loss)  ($14.6)   ($11.6) - ($8.6)  ($27.4) - ($22.4)

Interest expense, net     ($1.1)        ($1.5)            ($6.0)

Other income (expense)      -           ($1.0)            ($4.0)

Earnings (loss) per
 share (h)               ($0.11)   ($0.10) - ($0.08) ($0.27) - ($0.23)



Operating Loss Reconciliation
Unaudited
($000s)

 Operating loss before depreciation and
  amortization:                                   Three Months Ended
                                                       March 31,
                                                   2003        2002

 Operating loss                                  $(14,592)   $(33,296)
 Depreciation                                       5,612       6,241
 Amortization of intangible assets                  1,604      12,059
 Operating loss before depreciation and
  amortization                                    $(7,376)   $(14,996)



Quarterly Statistical Highlights
Unaudited
                                                                 Q1-03
                                                                  Y-Y%
                           Q1-03   Q4-02   Q3-02   Q2-02   Q1-02   chg

Total Quarterly Revenue
 ($mm)                     $56.6   $67.8   $56.3   $57.2   $55.7    2%

Revenue Distribution (%)
    US Online Media &
     Commerce                 59%     62%     60%     62%     65%
    US Print                  22%     17%     22%     19%     20%
    International Media &
     Commerce                 12%     15%     11%     12%      9%
    Channel Services           7%      6%      7%      7%      6%

    Subscription,
     Licensing, and Fee-
     based Revenue as % of
     Total Revenue            18%     16%     18%     18%     16%
    Barter as % of Total
     Revenue                   5%      4%      5%      5%      5%

Advertiser Metrics
    Top 100 US
     Advertisers' Renewal
     Rate (Q-to-Q)            89%     85%     88%     91%     78%
    Top 100 US
     Advertisers' % of
     Network Revenue          67%     63%     63%     59%     61%

Select Business Metrics
    Network Unique Users
     (mm)                   60.3    55.2    50.6    55.0    58.7    3%
    Average Leads per Day
     (i) (000s)              442     326     261     280     280   58%
    Total Leads  (i) (mm)   39.8    30.0    24.0    25.5    25.2   58%
    GameSpot Complete Paid
     Subscribers (000s)     53.5    47.2    37.5    22.5       -  n/a
    Downloads per day
     (mm)                    2.4     2.4     2.2     2.6     3.1  -22%
    Data Source Licenses     277     258     218     201     188   47%

Balance Sheet Highlights ($mm)
    Cash                   $56.0   $47.2   $64.8   $94.1   $57.6   -3%
    Marketable Debt
     Securities             68.2    79.8   105.4   112.9   135.4  -50%
    Restricted Cash         18.4    18.1    18.1    15.8    15.8   17%
         Total Cash &
          Equivalents     $142.6  $145.1  $188.3  $222.8  $208.8  -32%

    Total Debt            $118.0  $118.0  $170.1  $177.0  $176.5  -33%

    Days Sales
     Outstanding (DSO)        69      74      69      73      87  -21%



(a) Nielson//NetRatings March 2003 (Home/Work combined panel

(b) Nielsen//NetRatings February 2003 (Global Web Watch home panel)

(c) CNET Networks January - March 2003 (internal log data)

(d) For the three months ended March 31, 2003, other represents
    operating expenses related to realignment of $5,421, depreciation
    of $5,612 and amortization of $1,604. For the three months ended
    March 31, 2002, other represents operating expenses related to
    integration and realignment of $2,928, depreciation of $6,241 and
    amortization of $12,059.

(e) Q1 2003 actual results include $5.4 million of realignment
    expenses.

(f) Q2 2003 estimates include $2 million to $4 million of possible
    realignment expenses.

(g) Full-year 2003 estimates include $7.4 million to $9.4 million of
    realignment expenses.

(h) Assumes an effective tax rate of zero percent in Q1 2003 and
    full-year 2003.

(i) Q1-03 Average Leads per Day and Total Leads include leads from
    shopping services, downloads, search, and white papers. Prior
    periods do not include leads from search and white papers.

Safe Harbor Statement:

This document includes forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ materially. These forward-looking statements include statements regarding the company's expected financial results in the second quarter and full-year 2003, as well as other statements throughout the release that are identified by the words "expect," "estimate," "target," "believe," "anticipate," "intend" and similar expressions. These statements are only effective as of the date of this release and we undertake no duty to publicly update these forward-looking statements, whether as a result of new information, future developments or otherwise. Reported results should not be considered as an indication of future performance. The risks and uncertainties include: a slowdown in advertising spending on the internet in general, especially in the technology sector, or on CNET Networks' properties in particular, which could be prompted by increased weakness in corporate or consumer spending, or other factors; the failure of existing advertisers to meet or renew their advertising commitments; the loss of advertising revenue to CNET's competitors; the need for further cost reductions, which could increase severance costs and negatively impact operating income and net income or cause such results to differ from company guidance; the risk that projected cost-reduction initiatives will not be achieved due to implementation difficulties or contractual spending commitments that cannot be reduced; the risk that cost reduction efforts will result in a loss of revenues due to a decrease in resources dedicated to generating revenues; the weakening of the US dollar, which could increase operating losses; the acquisition of businesses or the launch of new lines of business, which could decrease the company's cash position, increase operating expense and dilute operating margins; the risk of future impairment of the company's assets or the need to increase the company's reserve attributable to abandoned real estate; the potential for disruptions of service due to the failure of key infrastructure providers; the failure of the company's users to adopt new paid service offerings; the costs associated with initiatives to standardize technology platforms or the company's failure to successfully complete those initiatives; the impact of political and economic conditions due to armed conflict and the threat of future terrorism in the US and abroad; the impact of major health concerns, such as the spread of Severe Acute Respiratory Syndrome ("SARS") on general economic activity; and general risks associated with our business. For risks about CNET Networks' business, see its Annual Form 10-K for the year ended December 31, 2002 and subsequent Forms 8-K, including disclosures under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are filed with the Securities and Exchange Commission and are available on the SEC's website at www.sec.gov.