1-800-ATTORNEY Reports Second Quarter 2001 Results; Company Continues to Expand Attorney Marketing Network

Business Wire,  August 14, 2001  

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Business Editors

LAKE HELEN, Fla.--(BUSINESS WIRE)--Aug. 14, 2001

1-800-ATTORNEY Inc. (Nasdaq:ATTY) today announced solid progress with the company's strategic rollout of its national attorney marketing network, 1-800-ATTORNEY, for its second quarter ended June 30, 2001.

The company reported a net loss of $797,180, or $0.15 per common share in the second quarter of 2001, compared with a net loss of $953,769, or $0.21 per common share, recorded in the second quarter of 2000. Revenues for the second quarter of 2001 were $1,207,953 compared with $1,299,829 reported for the same period last year.

For the six-month period ended June 30, 2001, the company reported a net loss of $1,517,462, or $0.30 per common share, compared with a net loss of $1,708,039, or $0.41 per common share, reported last year. Revenues for the same periods totaled $2,351,368, compared with $2,519,143 a year ago.

The company indicated that results for the second quarter reflect contributions only from the Central Florida Designated Marketing Area (DMA) for the month of June. The company anticipates benefiting from the contribution of two additional DMAs in the third quarter of this year as a result of its launch of networks in Miami Dade in July and Tampa in August.

1-800-ATTORNEY Inc. and its wholly owned subsidiary PCNA Communications Corp. are leading providers of print directories within the legal industry and are executing a strategy of becoming the nation's leading attorney marketing network.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: The statement made above relating to the benefits in the third quarter from the contribution of three DMAs is a forward-looking statement within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The statements that express the "belief," "anticipation," "plans," "expectations" and similar expressions are intended to identify forward-looking statements. The results anticipated by these forward-looking statements may not occur. While the company believes that these statements are accurate, its business is dependent upon general economic conditions and various conditions specific to its industry and future trend results cannot be predicted with certainty. Important factors that may cause actual results to differ materially from the forward-looking statements include the following: 1) the company's ability to successfully achieve and manage the technical requirements of the marketing network as intended; 2) the continued receptiveness of attorneys to the company's marketing network and the continuance of their contracts to term; and 3) the continued reception of consumers to advertisements the company places. For more information regarding some of the ongoing risks and uncertainties of the company's business, see the section titled "Risk Factors and Uncertainties" in the company's most recent annual report on Form 10-KSB on file with the Securities and Exchange Commission.

                          1-800-ATTORNEY Inc.
                 Consolidated Statements of Operations
                              (Unaudited)

                             Three months ended      Six months ended
                            June 30,    June 30,   June 30,   June 30,
                             2001        2000        2001        2000

Net sales              $1,207,953  $1,299,829  $2,351,368  $2,519,143
Costs and expenses:
Production                604,561     514,421   1,049,849     907,614
Marketing and selling     823,154     661,215   1,468,635   1,186,803
Depreciation and
  amortization            109,842      65,599     227,768     110,375
General and
  administrative          479,254   1,055,484     949,778   1,910,318
                        2,016,811   2,296,719   3,696,030   4,115,110
Loss from
  operations             (808,858)   (996,890) (1,344,662) (1,595,967)
Other income
  (expense), net           11,678      43,121    (172,800)     71,773
Loss before
  cumulative effect
  of change in
  accounting
  principle              (797,180)   (953,769) (1,517,462) (1,524,194)
Cumulative effect
  of change in
  accounting
  principle                    --          --          --    (183,845)
Net loss                ($797,180)  ($953,769)($1,517,462)($1,708,039)
Loss per common share
  before cumulative
  effect of change
  in accounting
  principle - basic
  and diluted              ($0.15)     ($0.21)     ($0.30)     ($0.37)
Cumulative effect of
  change in
  accounting
  principle                    --          --          --       (0.04)
Net loss per common
  share - basic and
  diluted                  ($0.15)     ($0.21)     ($0.30)     ($0.41)
Shares used in
  computing net loss
  per common share -
  basic and diluted     5,154,402   4,591,349   5,140,732   4,160,645

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