@pos.com Announces First Quarter Fiscal 2001 Operating Results.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 20, 2000

@pos.com, Inc. (www.atpos.com) (OTCBB:EPOS), a technology licensing pioneer in web-enabling the point-of-sale and point-of-presence environments, today announced first quarter financial results for the period ended September 30, 2000.

Total revenues for the quarter ended September 30, 2000 were $1.5M, a decline of $698,000 or 31%, from total revenues of $2.2M for the same period in the previous fiscal year. Licensing revenues of $1.3M represented 83% of total revenues in the most recent quarter, compared to $41,000, or 2% of total revenues for the same period in the previous year. The source of revenues has shifted significantly in the past year, away from direct product sales, as the Company has focused on licensing its products and designs to other significant point-of-sale manufacturers and distributors.

Gross profit for the quarter ended September 30, 2000 was $1.1M, an increase of $432,000 or 61% for the same period in the previous year. In this most recent period, gross margin was 74% of total revenues, an increase of 42 percentage points over gross margin in the same period last year. Cost of revenues declined approximately $1.1M from the previous year, totaling $392,000 in the quarter ended September 30, 2000. The significant decline in cost of revenues is reflective of the shift toward licensing fee revenues, for which cost as a percent of revenue are significantly lower when compared to direct product sales.

Operating expenses for the quarter ended September 30, 2000 totaled $2.7M, a decrease of $1.3M or 32% from the same period of last year. The lower expenses primarily reflect the impact of consolidating ReceiptCity's expenses of approximately $1M only for the period from July 1 through August 15, 2000. On August 15, 2000, ReceiptCity completed a sale of equity to outside investors, reducing @pos.com ownership to 45%. If ReceiptCity's expenses were fully included in consolidated results for the whole quarter, total consolidated operating expenses would have amounted to $3.9M, substantially equivalent to last year's expenses for the same period. If @pos.com expenses were viewed on a standalone basis, without the partial consolidation of ReceiptCity expenses, total operating expenses would have been approximately $1.7M, a decrease of $2.3M or 58% from the same period of last year.

Net losses for the quarter ended September 30, 2000 were $1.4M compared to net losses of $3.3M for the same period last year. Loss per share for the fiscal first quarter of 2001 was $(0.32) per share compared to $(1.55) per share for the same period in fiscal 2000. Without the impact of partially consolidating ReceiptCity expenses, net losses for the quarter ended September 30, 2000 would have been approximately $577,000, or $(0.13) per share.

During the quarter, @pos.com launched a development effort to create a new application specific integrated circuit ("ASIC") based secure input component, in part built on technologies the Company has patented or for which patents have been applied. The Company has entered into discussions with strategically significant technology companies seeking funding to develop products or components based on this new technology. There is no assurance that the further development of this technology will result in successful commercialization, nor that current or future discussions with potential corporate funding sources will result in funding for this effort.

Subsequent to September 2000, @pos.com advised HHP-Welch Allyn (the licensing partner generating the greatest source of revenue) that it was in default of its obligations to make payments pursuant to its agreement. On October 23, 2000, HHP-Welch Allyn responded that it was considering the Company's position and alleged that @pos.com was in default of various obligations under the agreement. Each party has 30 days to cure any breach of the agreement, and if any breach is not cured within that time the other party may elect to terminate the agreement. Throughout this period, @pos.com has also engaged in discussions with HHP-Welch Allyn to redefine the business relationship in a manner that would require less support to HHP-Welch Allyn by @pos.com and would permit HHP-Welch Allyn greater flexibility and control to differentiate products based on @pos.com's technology in the market. These discussions are continuing, but there can be no assurance that the Company and HHP-Welch Allyn can reach any agreement to modify the terms of their relationship, or that, even if any agreement is reached, any such agreement would be on terms favorable to the @pos.com.

Subsequent to September 2000, @pos.com received a Notice of Breach of Contract from its licensing partner HP Verifone that alleges that @pos.com and its affiliate, ReceiptCity, have failed to comply with certain provisions of the agreement between Verifone and the two companies. @pos.com and ReceiptCity are in discussions with Verifone and seek to amend the existing contract by mutual agreement. If the parties fail to reach an agreement on contract amendments, it is possible that @pos.com would have liability to HP Verifone for prepaid royalties it received in January 2000 in the amount of approximately $550,000.

About @pos.com

@pos.com, Inc. (OTC BB:EPOS) is the pioneer in Web-enabling the point-of-sale and point-of-presence environments. @pos.com's technology allows its licensing partners and customers to utilize secure interactive transaction products for electronic signature capture, debit and credit payments, display advertisements, promotions, and surveys. The company was previously named PenWare and MobiNetix Systems, Inc., known for its PW 3100 and PenWare 1100 and 1500 signature capture terminals. For more information, see www.atpos.com, email to [e-mail], or call [phone].

Except for historical information contained herein, the matters set forth in this press release are forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially, including price and product competition, design acceptance by customers, financing constraints, the ability to manufacture new products in sufficient volume, general economic conditions, and other risks as detailed from time to time in SEC reports and filings by @pos.com.

Note to Editors: PenWare and iPOS are trademarks of @pos.com, Inc. All other products or company names mentioned are used for identification purposes only and may be trademarks or registered trademarks of their respective owners.