@Track Communications Announces First Quarter 2000 Financial Results; Key Accomplishments Keep Company On Track in All Three Business Areas.

Business Editors

RICHARDSON, Texas--(BUSINESS WIRE)--May 11, 2000

@Track Communications, Inc. (Nasdaq SCP:ATRK), a leading provider of wireless-based vehicle fleet management and intelligent mobile asset-tracking solutions, today reported that total revenues for the first quarter ended March 31, 2000, were $14.1 million, down 17.4 percent from $17.1 million for the 1999 first quarter. The company reported a net loss of $4.8 million ($0.19 per share) for the 2000 first quarter, compared with a net loss, before nonrecurring income items, of $4.3 million ($0.17 per share) for the 1999 first quarter. Including $4.7 million in nonrecurring income items associated with litigation settlements and cellular carrier credits, @Track reported net income of $0.4 million ($0.02 per diluted share) for the 1999 first quarter.

"First quarter financial results were in line with our expectations, since revenues from installations of our service vehicle units will not begin to impact our results until the second quarter of 2000," said Jana Bell, president and chief executive officer. "We expect our revenues will increase, especially in the last two quarters of 2000, as we work to install over 28,000 service vehicle units for a major customer. We also anticipate revenue contribution in the third and fourth quarters from TrackWare(TM), our trailer-tracking product, as current customer pilots are converted into sales."

First quarter highlights:

-- Changed the corporate name to @Track Communications, Inc. from

HighwayMaster Communications, Inc. to reflect the company's

wireless technology direction to be an integrator of multiple

wireless data and voice networks and broadened vision of

"tracking things that move(SM)."

-- Began installing for member companies of SBC Communications,

Inc. (NYSE:SBC) the first of approximately 28,000 additional

Series 5005S intelligent mobile units, including enhanced

proprietary software and services. Approximately 1,600 have

been installed to date.

-- Received orders for 500 additional Series 5000 mobile units

from a major customer, increasing their fleet to over 5,600

@Track units.

-- Signed a TrackWare test agreement in January with Dart Transit

Company, one of the nation's premier truckload carriers, to

test @Track's recently launched trailer-tracking solution.

There are currently five large companies in pilot programs.

-- Formed a strategic alliance, announced in April, with Lockheed

Martin Integrated Business Solutions, one of our nation's top

e-business systems integrators, that will provide enhanced

systems integration capabilities for the company's mobile

communications solutions for the transportation industry.

Service revenue for the 2000 first quarter was $12.2 million, down 4.0 percent from $12.7 million a year ago due to a decline in the number of installed units, reduced personal calling revenue and a higher percentage of service vehicles in the installed base from the 1999 first quarter. The service revenue gross margin percentage for the 2000 first quarter was 41.9 percent, compared with 46.2 percent, before the effect of the nonrecurring income items, for the 1999 first quarter. Including the one-time income items, the 1999 first quarter service revenue gross margin was 74.3 percent. Product revenue for the 2000 first quarter was $1.9 million, down 56.9 percent from $4.3 million for 1999.

The installed base at March 31, 2000, was 49,514 mobile units, compared to 52,263 at March 31, 1999. Deactivations of mobile units for the quarter exceeded additions by 1,311 units, which was primarily due to the Company's deactivation of one customer for non-payment.

"We currently anticipate that by the end of this year we will have installed approximately 3,000 Series 5000 units, 18,000 to 25,000 Series 5005S units and 15,000 to 25,000 TrackWare units," added Bell. "We believe that @Track's future remains promising as we continue to execute our technology plan to integrate multiple wireless voice and data networks and offer mobile platforms with open standard technologies. We expect that this will provide us with added product flexibility and shortened application development times, while providing significant value to our current and future customers."

@Track provides intelligent wireless mobile communications, emergency dispatch, fleet management and mobile asset-tracking solutions. Its technology, currently covered by 34 issued U.S. and foreign patents and additional U.S. and international patents pending, combines wireless data and voice technologies with the Global Positioning System (GPS) satellite location capabilities for vehicle fleet management. The company's mobile asset product, TrackWare(TM), combines the technologies of GPS and wireless control channel messaging to track mobile assets.

Legal notice to investors: Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "expects," "anticipates" or words of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements generally involve known and unknown risks, uncertainties and other facts, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: ability to meet contract requirements; customer's failure to issue purchase orders for and install the mobile units; ability to execute technology plan; availability of capital for expansion and implementation of technology plan; ability to achieve sales projections; general economic and business conditions; competition; ability to maintain margins; advertising and promotional efforts; acceptance of new product offerings; success of operating initiatives; development and operating costs; market conditions; changes in business strategy or development plans; business abilities and judgment of management and personnel; availability of qualified personnel. For a listing of risks applicable to the future prospects of the Company, please refer to the reports filed with the SEC, such as recent 10-K and 10-Q Reports.

@Track's conference call, scheduled for 10:00 a.m. CT on Thursday, May 11, will also be broadcast via the Internet through StreetFusion(TM) at http://www.streetfusion.com. To listen through the Internet, please access the site at least 15 minutes prior to the call to register and ensure your computer contains the proper software. The conference call also will be available for replay shortly after the live call ends.

@Track Communications(TM) is a trademark of @Track Communications, Inc. TrackWare(TM) is a trademark of @Track Communications, Inc. HighwayMaster(R) is a federally registered trademark of @Track Communications, Inc. "Tracking things that move(SM)" is a service mark of @Track Communications, Inc.

- TABLES TO FOLLOW -

              @TRACK COMMUNICATIONS, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)
              (in thousands, except per share and units)


                                          Three months ended
                                               March 31,
                                       --------------------------
                                            2000          1999
                                       ------------  ------------
Revenues:
 Product                                  $  1,870      $  4,340
 Service                                    12,233        12,741
                                       ------------  ------------
  Total revenues                            14,103        17,081
                                       ------------  ------------
Cost of revenues:
 Product                                     1,341         3,144
 Service                                     7,104         3,277 (1)
                                       ------------  ------------
  Total cost of revenues                     8,445         6,421
                                       ------------  ------------

Gross profit                                 5,658        10,660
                                       ------------  ------------

Expenses:
 General and administrative                  2,594         3,389
 Customer service                            1,725         1,818
 Sales and marketing                         1,097           914
 Engineering                                   581           647
 Network services center                       352           419
 Depreciation and amortization               1,429         1,624
                                       ------------  ------------
                                             7,778         8,811
                                       ------------  ------------

  Operating income (loss)                   (2,120)        1,849

Interest income                                527           918 (1)
Interest expense                            (3,342)       (3,342)
Other income                                   142           965 (1)
                                       ------------  ------------
 Income (loss) before income taxes          (4,793)          390
Income tax provision                            --            --
                                       ------------  ------------
 Net income (loss)                        $ (4,793)     $    390
                                       ============  ============

Per share:
 Basic and diluted income (loss)          $  (0.19)     $   0.02
                                       ============  ============

Weighted average number of shares
 outstanding
  Basic                                     25,505        24,993
                                       ============  ============
  Diluted                                   25,505        25,444
                                       ============  ============

Supplemental information:

 EBITDA                                   $   (549)     $  4,438 (2)
                                       ============  ============

 Installed units -- beginning of
  period                                    50,825        47,657
 Net additions                              (1,311)        4,606
                                       ------------  ------------
 Installed units -- end of period           49,514        52,263
                                       ============  ============

        (1) Includes non-recurring income items of $4.7 million
            associated with the settlement of certain litigation
            matters and credits received from certain cellular
            carriers related to prior periods.

        (2) Excluding non-recurring income items EBITDA would have
            been ($107).

              @TRACK COMMUNICATIONS, INC. AND SUBSIDIARY
                      CONSOLIDATED BALANCE SHEETS
                              (UNAUDITED)
                            (in thousands)

                                ASSETS

                                         March 31,    December 31,
                                           2000          1999
                                       ------------  ------------
Current assets:
 Cash and short-term investments          $ 18,906      $ 17,768
 Accounts receivable, net                   10,878        13,341
 Inventories                                 9,917         9,292
 Pledged securities --
  current portion                            6,362        12,705
 Other current assets                        3,192         2,588
                                       ------------  ------------
  Total current assets                      49,255        55,694
Network, equipment and software,
 net                                        14,754        15,703
Other assets, net                            2,568         2,676
                                       ------------  ------------
  Total assets                            $ 66,577      $ 74,073
                                       ============  ============

            LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
 Accounts payable                         $  2,727      $  2,431
 Telecommunications costs payable            4,814         4,462
 Accrued interest payable                      541         3,784
 Other current liabilities                   8,904         9,357
                                       ------------  ------------
  Total current liabilities                 16,986        20,034
Senior notes payable                        92,189        92,090
                                       ------------  ------------
  Total liabilities                        109,175       112,124
                                       ------------  ------------

Commitments and contingencies

Stockholders' equity (deficit):
 Preferred Stock                                --            --
 Common Stock                                  256           255
 Additional paid-in capital                149,987       149,742
 Accumulated deficit                      (192,294)     (187,501)
 Treasury stock                               (547)         (547)
                                       ------------  ------------
  Total stockholders' equity

  (deficit)                                (42,598)      (38,051)
                                       ------------  ------------
  Total liabilities and
   stockholders' equity
   (deficit)                              $ 66,577      $ 74,073
                                       ============  ============

Note to Editors: The company name "@Track" is spelled with the "at symbol," which may not translate on some databases.