Prologic's Annual Report on Form 10-KSB Delayed

Business Wire, July 14, 1998

TUCSON, Ariz.--(BUSINESS WIRE)--July 14, 1998--PROLOGIC MANAGEMENT SYSTEMS, INC. (NASDAQ: PRLO, PRLOW) (BSE: PRC, PRCW) announced today that its annual report on Form 10-KSB for the fiscal year ended March 31, 1998 would not be timely filed with the Securities and Exchange Commission (the "SEC"). The delay is related to the late engagement of Arthur Andersen LLP as the Company's independent public accountant and certain material uncertainties that have delayed completion of the audit. The Company anticipates filing its report on Form 10-KSB promptly upon resolution of these uncertainties.

Pending completion of the audit, Prologic expects to report fiscal year net sales of approximately $21,263,000, an increase of approximately $7,399,000 from net sales of $13,864,000 of the prior fiscal year. The Company expects to report a lower net loss for the fiscal year ended March 31, 1998 as compared to the prior fiscal year.

As previously reported in the Company's most recent 10-QSB for the quarter ended December 31, 1997, Prologic's listing agreement with the NASDAQ SmallCap Market requires the Company to maintain certain qualitative criteria, including net tangible assets of at least $2 million, and provide timely filings with the SEC. Currently, the Company has a hearing scheduled with NASDAQ on August 7, 1998 to review the Company's listing. If the Company were to lose its NASDAQ SmallCap Market listing, the Company's common stock and warrants would be traded on the OTC Electronic Bulletin Board under NASD regulation or in the non-NASDAQ over-the-counter market.

PROLOGIC MANAGEMENT SYSTEMS INC. (http://www.prologic.com) is a commercial systems integration and software development firm with development expertise in manufacturing, distribution, resource planning and resource tracking. Prologic subsidiaries, BASIS, Inc. (California, Oregon) and Great River Systems, Inc. (Minnesota), offer national and regional systems integration expertise. Services include enterprise and workgroup client/server design and optimization, relational database development, LAN/WAN and workgroup solutions, Internet/intranet design and connectivity, and graphic design services for the World Wide Web. Prologic provides a full range of hardware and commercial software solutions, with a focus on UNIX-based products, as well as NT and legacy interoperability.

This press release contains forward-looking statements pertaining to the filing of the Company's 10-KSB, expected year end sales and net loss results, and possible outcomes of a NASDAQ hearing. Investors are advised that actual results may vary due to the following risks and uncertainties: the company cannot currently predict when the Form 10-KSB may be filed, as its preparation is dependent on the final outcome of the audit to be conducted by Arthur Andersen LLP and issues that may arise in the course of that audit, the net sales and net loss results may vary depending on the outcome of the audit, and the outcome of the NASDAQ hearing is dependent on a number of factors, including particularly the filing of the 10-KSB and the net tangible asset requirement.

   CONTACT: Prologic Management Systems, Inc.
             Janet Cabibbo
             (520) 320-1000