ASTAWARE SECOND QUARTER RESULTS

Toronto, Ontario, Canada - September 30, 1999 -

ASTAware Technologies INC. ("ASTAware" / the "Company") is pleased to report upon the results of its second quarter ended July 31, 1999. These results reflect management's on-going effort to enhance the market presence of its Java-based search, index and retrieval applications: SearchDisc, SearchKey PRO and SearchKey API, as well as an expansion of its Information Management Systems services.

The following are the results for the second quarter ending July 31, 1999, and the comparative results for the same period the previous year:

Although revenue for the three months ended July 31, 1999 was $113,353, as compared to $246,284 for the three months ended July 31, 1998, the Company successfully expanded its customer base and signed license agreements with the following new customers during this same period: American Bureau of Shipping; Chase Bobko, Inc.; Core Laboratories; HRN Inc.; Kaleidoscope Animation; Maracom; Pacific Telecommunications Council; Pan American Health Organization; Portal Software, Inc.; Rauland-Borg Corporation; Sideware Systems Inc.; Split Image Multimedia; Tama International Design; Texas A&M University; United States Peace Corps; and Zondervan Publishing House. For the six months ended July 31, 1999, ASTAware reported a 10% increase in revenues to $415,963, versus revenues of $378,050 for the six months ended July 31, 1998.

General and administrative expenses for the three months ended July 31, 1999 decreased 15% to $147,556 from $172,726 for the three month period ended July 31, 1998. General and administrative expenses for the six months ended July 31, 1999 decreased to $247,742 versus $382,615 for the same period from the prior year. This decrease is attributable to the on-going rationalization of operations and the implementation of cost controls providing for the efficient management of expenses.

Selling, marketing and operating expenses increased by 871% for the three months ended July 31, 1999 to $103,791 from $10,688 for the three months ended July 31, 1998. This increase was regarded as essential for the purpose of expanding the market presence of the Company's products and services and is expected to assist the Company in achieving its revenue targets in the months ahead.

While ASTAware did not meet its revenue objectives for the three months ended July 31, 1999, due, in part, to delays in completing licensing agreements, the Company successfully demonstrated its ability to expand its customer base, a critical step in achieving market penetration. ASTAware intends to finalize a number of license, development and Information Management Systems agreements within the third and fourth quarters. The Company will persevere in its emphasis on the marketing and sales of its products and services with the view to continuing its present trend of positive results into the future.

ASTAware is a leading developer of Y2K compliant, index, search and retrieval software with a suite of Java-based API, website, intranet and CD-ROM products. ASTAware’s current licensees include IBM, Lockheed Martin Tactical Systems (UK), Siemens Telecom Networks, Silicon Graphics, Sun Microsystems and Transport Canada and the Company presently provides Information Management Solutions including database conversion and archiving to Ontario Hydro and Rogers Media, to name but a few. For more information on ASTAware’s products and services, contact the company at its websites: http://www.astaware.com, http://www.searchkey.com, or e-mail: ejewell@astaware.com.