ASTAWARE ANNOUNCES PROFIT FOR FIRST QUARTER OF 1999

Toronto, Ontario, Canada - June 30, 1999 -

ASTAware Technologies INC. ("ASTAware" / the "Company") is extremely pleased to announce that a profit was generated for the first quarter ended April 30, 1999. The Company's revenues for the period increased by 130% from $131,766 to $302,610 and for the first time ASTAware showed a profit of $15,677.

These results reflect management's on-going effort to enhance the market presence of ASTAware's Java-based search, index and retrieval applications: SearchDisc, SearchKey API and SearchKey PRO, as well as expansion of its Information Management Systems services.

Some of the Company's more significant sales resulted from the establishment or enhancement of relationships with companies that include: Sun Microsystems, Rogue Wave Software, Fawcette Technical Publications, Ontario Power Generation (formerly Ontario Hydro), Vernon Directories and the Dairy Bureau of Canada. Over the following months, ASTAware expects that with its on-going emphasis on the marketing and sales of its products and services, the Company should continue its trend of positive results.

Additionally, ASTAware announces the following results for the first quarter ending April 30, 1999, and the comparative results for same period for the previous year:

For the three months ended April 30, 1999, ASTAware reported a 130% increase in revenues to $302,610, versus revenues of $131,766 for the three months ended April 30, 1998. Most significantly, the Company showed a profit of $15,677 for the period, as compared to a loss of $222,414 for the first quarter ended April 30, 1998.

Selling, general and administrative expenses decreased to $118,683 versus $240,857 from the prior year. This 51% decrease is attributable to the rationalization of operations and the establishment of cost controls providing, for the efficient management of expenses.

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.