National Lampoon Files Information Statement Related to Plans to Strengthen Balance Sheet

National Lampoon, Inc. (AMEX:NLN), the most widely recognized brand in comedy, today filed with the U.S. Securities and Exchange Commission an Information Statement disclosing the approval, by National Lampoon’s board of directors and its stockholders, of a series of transactions intended to strengthen the Company’s balance sheet. The transactions are part of a plan filed with the American Stock Exchange on March 27, 2008 to regain compliance with its continued listing standards. The plan was accepted by the American Stock Exchange on May 16, 2008.

As disclosed in the Information Statement, National Lampoon’s board of directors and stockholders holding a majority of the voting power approved proposed amendments to the Company’s Certificate of Incorporation which will permit National Lampoon to pay the dividends that accrue to its Series B and Series C Convertible Preferred Stock on a quarterly basis, thereby allowing the Company to remove the $4,261,950 currently in accrued interest expense related to the dividends from its balance sheet. Prior to adopting the amendments, the dividends could be paid only upon the conversion of the Series B and Series C Convertible Preferred Stock into common stock. Also approved were agreements permitting certain stockholder loans to be paid with the Company’s securities. The Company expects these actions to significantly decrease long-term debt and decrease stockholders’ deficit.

“We believe that this is another step in the right direction for the company as we work to clean up our balance sheet and regain compliance with the American Stock Exchange,” stated Daniel S. Laikin, National Lampoon Chief Executive Officer. “This, along with our pipeline of projects coming to market over the next year, should put us in a much stronger financial position going forward.”

Additional details are set forth in the Information Statement, which will be mailed to the Company’s stockholders in accordance with applicable securities laws.

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, the Drunk University Network, the new ZAZ Network, and the 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.

Forward-Looking Statements

This press release contains forward-looking statements, including the statement that the Company’s balance sheet may be strengthened by the transactions discussed herein. The words or phrases “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “considers” or similar expressions are intended to identify “forward-looking statements.” Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations. Our actual results may differ materially from the anticipated results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the performance of our staff, loss of management personnel, an inability to obtain financing as and when we need it, competition from other entertainment companies, our ability to implement or manage our expansion strategy, general economic conditions and other factors that are detailed in our Annual Report on Form 10-KSB and on documents we file from time-to-time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.
Contacts

National Lampoon, Inc.
IR Contact:
Howard Gostfrand/David Sasso, 305-918-7000
info {at} amcapventures(.)com
www.amcapventures.com
or
Press:
Alastair Duncan/Dawn Miller
310-300-0950 x 223/231
aduncan {at} LCOonline(.)com
dmiller {at} LCOonline(.)com