ANTs software Reaches Tentative Agreement With Securities and Exchange Commission.

Business Editors/High Tech Writers

BURLINGAME, Calif.--(BUSINESS WIRE)--Aug. 14, 2001

ANTs software inc. (OTCBB:ANTS), a developer of advanced technologies to accelerate online transaction processing (OLTP), announced today that it has entered into a tentative agreement with the staff of the Pacific Regional Office of the Securities and Exchange Commission (SEC) that would close an SEC inquiry under way since early last year. The tentative agreement must be approved by the SEC Commissioners in Washington, D.C. before it is final.

Under the terms of the tentative agreement, the SEC will allege in a civil injunctive action that ANTs violated the periodic reporting requirements of the federal securities laws. ANTs will simultaneously settle the case, without admitting or denying the SEC's allegations, by consenting to an injunction prohibiting ANTs from future violations of the periodic reporting requirements of the federal securities laws. The agreement does not require ANTs to pay a monetary fine.

"We welcome this agreement from the staff of the SEC's Pacific Regional office," said Frank Ruotolo, ANTs' CEO. "We look forward to the Commissioners' final approval which should remove one road block for us to pursue listing on a major exchange."

This press release contains certain forward-looking statements as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected. Such risks include but are not limited to the following: there can be no assurance that the SEC Commissioners in Washington, D.C. will approve the tentative agreement reached with the staff of the SEC's Pacific Regional Office as outlined above, there can be no assurance that ANTs software will produce the expected results or that it will result in a commercially viable product; that the Company will secure the necessary current and additional financing, intellectual property and staff to support current and future operations. Further risks are detailed in the Company's filings with the Securities and Exchange Commission, including the Company's most recent Form 10-KSB for the fiscal year ended December 31, 2000.