ASTAWARE DEBT SETTLEMENT

Toronto, Ontario, Canada - January 7, 2000 -

ASTAware Technologies INC. ("ASTAware" / the "Company") announces that it has agreed to settle management/employment debt aggregating to $120,000 by issuing 800,000 shares to certain senior management at a price of $0.15 per share. The shares issued on the settlement of such debt will be subject to a four month hold period from the date of issuance of the shares. The shares for debt settlement is subject to Canadian Venture Exchange approval.

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.