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Key3Media Proposes Recapitalization That Would Provide Strong Financial Foundation; Pre-Negotiated Plan Would Eliminate 87% of Debt and All Preferred and Common Stock.

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Business Editors

LOS ANGELES--(BUSINESS WIRE)--Feb. 3, 2003

Thomas Weisel Capital Partners to Provide $30 Million

In DIP Financing to Fund Ongoing Operations;

All Tradeshows and Conferences Will Take Place As Planned

Key3Media Group, Inc. (OTCBB: KMED), the world's leading producer of information technology tradeshows and conferences, today proposed a comprehensive recapitalization plan designed to provide a strong financial foundation for the Company.

The plan is backed by investment funds managed by Thomas Weisel Capital Partners ("TWCP"), which own approximately 68% of Key3Media's bank debt and approximately 38% of its bonds (11.25% senior subordinated notes due 2011).

Through the recapitalization, Key3Media will reduce its total debt by 87% from approximately $372 million to $50 million and eliminate all of its existing preferred stock and common equity. Annual interest expense will be cut from approximately $38 million to $3.4 million. TWCP has agreed to provide Key3Media $30 million in debtor-in-possession (DIP) financing in a pre-negotiated Chapter 11 proceeding commenced today. TWCP has also agreed to fund the Company going forward on completion of the reorganization. The proposed plan of reorganization will enable the Company to operate its business with no interruption. Current management will remain in place during the recapitalization, and with the support of...

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