Year 2000 Wire/Egan Systems Stock Rises 38% on News of Possible China Joint Venture

Business Wire, March 20, 1998

HOLBROOK, N.Y.--(BUSINESS WIRE)--March 20, 1998--Egan Systems Inc. (OTCBB:EGNS) stock rose 38% with a volume of 778,000 shares on yesterday's news of a possible Egan sales and joint venture opportunity to confront China's millennium bug.

Egan will be teaming with Yorkshire Capital of Hong Kong, which has clients in the steel, agriculture, pharmacy and transportation systems facing Year 2000 COBOL problems.

Andy Lai, director of Yorkshire said: "Worldwide, 80% of all applications are written in COBOL and China is no exception. China is playing catch up to the rest of the world with its enormous market. Rewriting code at this point is a losing proposition. Chinese industry is dependent on this standard programming language and cannot just start over. The code needs to be corrected to avoid the millennium problems of our clients. Egan Systems is a leader in providing Year 2000 Impact Assessment and Remediation Tools and Services. It makes sense to bring them over to work with us on these problems and opportunities."

Egan Systems stock closed at $1.21 on 3/18 and $1.62 on 3/19. Egan Systems Inc. is forecasting 400% growth in 1998 and at least an additional 400% growth in 1999. The company is located in Holbrook, N.Y., with research and design facilities in Raleigh, N.C. More information can be found on the company's web site www.egns.com.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur.

CONTACT: Press Only:

Tedrow Communications Corp., Winter Park, Fla.

Thomas Tedrow, 800/777-8098