ASTAware Releases Second Quarter Results

Toronto, Ontario, Canada - September 29, 2000 -

ASTAware Technologies INC. ("ASTAware" / the "Company") announces the following results for the second quarter ending July 31, 2000, and the comparative results for same period for the previous year:

For the three months ended July 31, 2000, ASTAware revenues decreased to $107,654 versus revenues of $113,353 for the three months ended July 31, 1999. Revenues for this period actually increased by 3% as compared to the preceding quarter ended April 30, 2000. Although the revenues during the second quarter were below management expectations, ASTAware expanded its customer base by adding 7 new customers, including, among others, VERITAS Software Group, Directional Data, Belgium Parliament, Natural Resources Canada, and The Hiser Group. The Company showed a loss of ($330,608) for the period, as compared to a loss of ($312,150) for the second quarter ended July 31, 1999.

Selling, general and administrative expenses decreased to $222,404 for the second quarter ended July 31, 2000 versus $251,347 from the quarter ended July 31, 1999. Compared to the previous quarter, these expenses increased by 42%. This increase is primarily attributable to the expanded infrastructure to support the sales and product development efforts. Management regarded these efforts as worthwhile as it focused on building the Company's brand and obtaining industry leader reference sites where its technology is deployed. This strategy, management believes, is critical for the Company's future revenue growth.

ASTAware is a leading provider of B2B solutions including E-CAT, a solution that combines ASTAware's cutting edge index, search and retrieval software with e-commerce technology to produce an electronic catalog with product searching and ordering functionality integrated within a CD-ROM/DVD and/or online. The Company's information retrieval solutions include: SearchKey API, SearchKey PRO and SearchDisc. ASTAware's current licensees include Hewlett Packard, IBM, Lockheed Martin Tactical Systems (UK), Qualcomm, Siemens Telecom Networks, Silicon Graphics, Sun Microsystems, Transport Canada and Veritas 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.