NATIONAL LAMPOON DIVES INTO ITS ARCHIVES TO DEVELOP ALL-NEW FEATURE FILMS BASED ON MATERIAL FROM THE CLASSIC NATIONAL LAMPOON MAGAZINE

LOS ANGELES, CA (December 14, 2005) -- Continuing its strategic business focus on leveraging its famous brand and legendary reservoir of comedy material, National Lampoon, Inc. (AMEX: NLN) announced today a partnership with the newly-formed Half Shell Entertainment Films to develop all-new feature films based on material from the classic National Lampoon magazine and NationalLampoon.com, its modern day successor. The announcement was made by Barry Layne, National Lampoon's executive vice president, and James DeJulio on behalf of HSE Films.

"Partnering with HSE Films," Layne said, "makes perfect sense; they are young, aggressive and have the sensibility that both goes with our history and is in common with today's young adult audience."

"For the last 35 years, National Lampoon has been in the business of the care and feeding of writers and their material," said National Lampoon editor-in-chief Scott Rubin. "Both National Lampoon's Animal House and the original National Lampoon's Vacation were spawned by original articles from the magazine. We have no doubt that there are other diamonds in the rough, both in the magazine archive and in the digital realm of NationalLampoon.com," he said.

"We're proud to be the guys that National Lampoon chose to partner with," DeJulio, of HSE Films, said. "We are highly confident in our mutual ability to mine, assess and identify material that will be funny and able to live up to the legacy."

About National Lampoon - National Lampoon, Inc. is active in a broad array of entertainment segments, including feature films, television programming, interactive entertainment, home video, audio CDs 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. The National Lampoon Network serves over 600 colleges and universities throughout the United States. The network reaches as many as 4.8 million students, or nearly one in four of all 18-to-24-year-old college students. In addition, the Company operates a humor website, www.nationallampoon.com, on the Internet. The Company has four operating divisions: National Lampoon Network, Entertainment Division, Publishing Division and Licensing Division.

About Half Shell Entertainment Films - Half Shell Entertainment Films, LLC is an affiliate of and managed by Half Shell Entertainment, LLC ("HSE"). Based in Santa Monica, California, HSE is actively engaged in the development, production, and finance of a wide variety of entertainment and media projects including motion pictures, television series and home video.