Stellar Technologies Releases Stellar IM v3.1 Providing Organizations with Unsurpassable Internet Management Capability

Business Wire, August 3, 2004

NAPLES, Fla. -- Stellar Technologies, Inc. (OTCBB:SLLR), a leading provider of Employee Internet Management solutions, today released Stellar IM v3.1. The release includes enhancements to the Stellar IM Client, which deliver intelligent port detection, increased transaction performance and an additional layer of redundancy for data recovery.

"As employees become more sophisticated in their pursuit to by-pass Internet monitoring products, we are committed to remaining a step ahead with our product development to ensure delivery of bullet-proof management solutions for our customers. In release 3.1, we have added many enhancements to provide another layer of data protection for our customers," says Stellar Technologies CTO, Sven James.

Among the enhancements made in version 3.1, the most significant modification provides an additional layer of data redundancy using a local transaction queue to retain data until it is successfully deposited into the secure Stellar servers. The additional data security prevents data loss should a customer lose, or intentionally disconnect, Internet access. Enhancements to the Stellar IM reporting interface were also released to provide advanced search capabilities and additional instant messaging reporting details.

Stellar IM provides organizations with an ironclad Employee Internet Management solution delivering secure, real time reporting, alerting and archiving. Unlike other point of failure products, which can hinder use of Internet communication tools, such as instant messaging, Stellar IM is built upon pass-by technology, which does not determine when users can access valuable means of business communication.

About Stellar Technologies, Inc.

Florida-based Stellar Technologies, Inc. (SLLR) is a leading provider of Employee Internet Management solutions. SLLR provides real time reports of employee web browsing and instant messaging conversations on a single unified platform, and offers a full line of products from cost-efficient Web based solutions to the in-house Enterprise Edition for businesses or government organizations. Benefits of the SLLR business solutions include increased employee productivity, reduction of IT resources, improved litigation control and increased compliance with applicable regulations. SLLR recently acquired CompuSven, Inc., a Naples, Florida based leading provider of industrial strength e-mail migration, and a specialist in e-mail data and directory management. For more information, visit: www.stellarti.com.

Forward Looking Statements:

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained herein, including without limitation, statements regarding the Company's future financial position, business strategy, budget, projected revenues, projected costs and plans and objectives of management for future operations are forward-looking statements. The words "estimate," "project," "intends," "expects," "believes," "may," "will," "should," "could," or "would," the negative of such terms or similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor' provisions of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company's actual results, events or financial position to differ materially from those included within the forward-looking statements. These factors include, but are not limited to, the acceptance of the Company's products in the marketplace, competition, the Company's ability to generate additional financing, as well as those factors set forth in the Company's Registration Statement on SEC Form SB-2 and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.