Datapoint Corporation Unable to Make Interest Payment On Debentures When Due; Blake Thomas No Longer an Employee - Company Financial Information

Edge: Work-Group Computing Report, Jan 10, 2000

Datapoint Corporation (OTC BB:DTPT) announced Wednesday that it was unable to make the interest payment due Dec. 1, 1999 on the 8 7/8 Convertible Subordinated Debentures due 2006.

Non-payment of interest on the Debenture when it becomes due, and continuance of such non-payment for 30 days is an Event of Default under the Indenture. Reboot Systems Inc., the party with whom the Corporation entered into an agreement to sell the Corporation's European subsidiaries, has not advanced the interest payment to the Corporation as was anticipated. However, active negotiations continue in an effort to complete the funding for the interest payment.

In addition, effective Dec. 30, 1999, Blake Thomas, a member of the investor group working with Reboot, ceased to be employed by Datapoint Corporation. The Executive Committee of the Board has assumed his duties as President and Chief Operating Officer until a replacement can be named.

The sale of its European Operations is consistent with the direction of the Corporation to focus its efforts and resources on acquiring, developing and marketing products with Internet and E-commerce applications.

The recently acquired Corebyte Networks product family (www.corebyte.com), highlights this effort. The Corebyte subsidiary has developed an intelligent browser-based communications networking system. With a single interface, users of Corebyte Networks products directly access every application necessary to manage their enterprise from basic E-mail to advanced group computing tools. Corebyte Networks products users seamlessly share and exchange valuable information, selectively and securely, within their networked community and across enterprises via the Internet. Companies that standardize their network on Corebyte Networks products gain all the benefits of the Internet and eliminate the fear of obsolescence.

With its U.S. headquarters in San Antonio, Texas, and international headquarters in Paris, France, the Corporation is a recognized innovator in modern networking infrastructure. The Corporation specializes in the design integration and maintenance of data, voice and networking communication solutions, including call center and computer-telephony integration (CTI).