Year End and First Quarter Results Reflect Results of Refocus Efforts At IXATA Group

Business Wire, April 2, 2001

Business Editors

SAN DIEGO--(BUSINESS WIRE)--April 2, 2001

The results for the year end 2000 and the results achieved for the first quarter 2001 are contrasting given the re-focus effort commenced as a result of the NextGen Investment made in the Fourth Quarter of 2000.

Billings for the first quarter more than doubled from a year ago, while the operating expenses are being held to less than half that forecast for the same period last year. This has been made possible by the maturation of the product suite, and the diminishing development expenses; coupled with the increasing popularity of the product, RFP Express, and the expansion of the client base for the product.

IXATA made significant investment in server and communication hardware during the first quarter, assuring clients of increased speed of access and more reliable response characteristics than last year. Though development expenses were diminished, IXATA also made strides in integrating many user-friendly aspects into RFP Express, combing through a catalogue of improvements gathered throughout the past season. In the first quarter, IXATA introduced a new home page and navigation process for RFP Express; which has brought congratulations and thanks from throughout the user community.

IXATA has made strides in partnering with data users and providers in the industry to provide compatible links between the hotel clients and consortia providers as well as some of the central reservations systems in use. It is seeking definitive agreements to allow automated electronic submissions, which will save costs and should improve quality for users. These efforts should begin to benefit users later this year.

IXATA, continuing to evaluate expenditures, suspended operations of its virtual purchasing division, along with its major product, GetPaidToStay.Com. Though there was some positive response from the market, the investment requirements were distracting from the refocus efforts described above, and the company decided to concentrate effort on the core product, RFP Express, and derivative products requested by the industry where results are continuing to be strong.

IXATA is striving for a breakeven year in 2001, with a goal for positive cash flow and operating earnings in 2002. The results in the first quarter, actions taken by the team, and the response of the client base have increased our confidence in these goals being achieved.

About IXATA.COM

IXATA.COM, a wholly-owned subsidiary of The IXATA Group Inc. (OTCBB:IXTA), is an Internet-based, business-to-business, e-commerce company providing solutions for a broad spectrum of clients in the hotel, hospitality and corporate travel industries. IXATA.COM has pioneered development of RFP Express, an Internet-based system and service that automates labor-intensive processes in the travel industry through the integration of innovative Internet and software applications, and database technology. RFP Express provides corporate travel managers with a simple "point and click" approach to create, manage and process thousands of RFPs and eliminate costly, labor-intensive paper, faxes and telephone calls. For more information on IXATA.COM, visit the company's Web site (http://www.ixata.com).