Ptek's Xpedite Unit Experiences Q2 Price Pressure in Its Legacy Fax Business; New E-mail Services Grow 180%

Business Wire, July 12, 2000

Business Editors

ATLANTA--(BUSINESS WIRE)--July 12, 2000

Ptek Holdings' EBITDA to Remain Strong

Ptek Holdings (NASDAQ: PTEK)(www.ptek.com) announced today that its Xpedite business unit experienced a revenue decline of approximately $3.8 million for the second quarter of 2000, as compared to its record first quarter of 2000. The decline is primarily due to continuing price pressure on its legacy fax business and less favorable foreign exchange rates, although the number of daily fax messages stayed in line with last quarter. Primarily as a result of the Xpedite decline, Ptek Holdings expects to report Q2 revenue (excluding the retail calling card business) to be slightly down for the quarter to approximately $105 million. Ptek's adjusted EBITDA (excluding the retail calling card business and non-cash items but including other consolidated holding company expenses) remained strong for the third consecutive quarter at approximately $18 million. This is a result of continuing cost savings from the company's decentralization strategy, along with improved transmission costs.

Xpedite's primary growth strategy for the future is its MessageREACH(SM) Internet e-mail division. Launched earlier this year, MessageREACH has already surpassed expectations, reaching volume levels exceeding 500,000 e-mail messages per day. Revenue and volume for MessageREACH services have grown more than 180% quarter over quarter. As the market leader in enhanced fax services, Xpedite plans to become the market leader in managed e-mail services through its MessageREACH division by leveraging its global customer relationships and existing infrastructure.

"Although our revenue number wasn't as strong for the quarter as we had planned, we continue to generate healthy EBITDA which allows us to invest in future services like MessageREACH(SM)," stated Jeffrey A. Allred, Ptek Holdings President and COO. "We are excited about the prospects our new Internet-enabled services will bring to our well-established, global customer base."

Ptek will release its actual second quarter results on Thursday, August 3, 2000.

About Ptek Holdings, Inc.

Ptek Holdings, Inc. (NASDAQ: PTEK) is a network of leading Internet and business-to-business service providers. Ptek's operating companies include Xpedite, Voicecom and Premiere Conferencing. The Company's PtekVentures investment unit has ownership interests in Healtheon/WebMD (NASDAQ: HLTH), S1 Corporation (NASDAQ: SONE), USA.NET, Webforia, Derivion, i2Go, BuyTrek, ScienceWise.com, Ntown, PlanetJam Media Group and clickandmove.com. Ptek leverages the technologies, management expertise, market channels and capital of its network to drive growth and promote market leadership throughout its operating and network companies.

Ptek Holdings corporate headquarters is located at 3399 Peachtree Road NE, The Lenox Building, Atlanta, GA 30326. Additional information can be found at www.ptek.com.

Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the `safe harbor' provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in Ptek's forward-looking statements, including the following factors: competitive pressures among communications services providers, including pricing pressures, may increase significantly; Premiere's ability to respond to rapid technological change, the development of alternatives to its products and services and the risk of obsolescence of its products, services and technology; market acceptance of new products and services; development of effective marketing, pricing and distribution strategies for new products and services; strategic investments in early stage companies, which have limited operating histories and are subject to significant risks, may not be successful and returns on such strategic investments, if any, may not match historical levels; the value of Premiere's business may fluctuate because the value of some of its strategic equity investments fluctuates; Ptek's strategic investments in companies that are subject to the Securities Exchange Act of 1934 are subject to the risks disclosed by those companies in their public filings; Ptek may incur significant costs and may be forced to make disadvantageous business decisions to avoid investment company status, and Ptek may suffer adverse consequences if it is deemed to be an investment company; Ptek's ability to manage its growth; costs or difficulties related to the integration of businesses and technologies, if any, acquired or that may be acquired by Premiere may be greater than expected; expected cost savings from past or future mergers and acquisitions, may not be fully realized or realized within the expected time frame; revenues following past or future mergers and acquisitions may be lower than expected; operating costs or customer loss and business disruption following past or future mergers and acquisitions may be greater than expected; the success of Ptek's strategic and other distribution relationships, including the amount of business generated and the viability of the strategic relationships, may not meet expectations; possible adverse results of pending or future litigation or adverse results of current or future infringement claims; risks associated with interruption in Ptek's services due to the failure of the platforms and network infrastructure utilized in providing its services; risks associated with the Year 2000 issue, including Year 2000 problems that may arise on the part of third parties which may effect Ptek's operations; risks associated with expansion of Ptek's international operations; general economic or business conditions, internationally, nationally or in the local jurisdiction in which Ptek is doing business, may be less favorable than expected; legislative or regulatory changes may adversely affect the business in which Ptek is engaged; and changes in the securities markets may negatively impact Ptek.