ANTs software.com Announces Decision to Refile NASDAQ Application Rather Than Seek Reversal of Turn Down.

Business Editors/High-Tech Writers

BURLINGAME, Calif.--(BUSINESS WIRE)--May 8, 2000

ANTs software.com, (OTC BB:ANTS) (www.antssoftware.com) a developer of advanced technologies to speed up computer processing, today announced that it received notification from NASDAQ that the Company's request for listing on the NASDAQ National Market was declined. Although the Company had the right to appeal the turndown until close of business, Friday, May 5, 2000, it has decided not to do so.

In reaching its decision, NASDAQ mentioned the Company's financial strength, prior audit/auditor status and the SEC investigation that was initiated in January of this year. "We believe we have already cured all of the conditions about which NASDAQ expressed concern," said Frederick D. Pettit, President and CEO. "We also understand the difficult atmosphere under which NASDAQ was obliged to consider our application.

"Over the past several months, our Company has been subjected to misleading journalistic attacks and Internet chatroom abuse. These events have not been unrelated to our Company's share price movements. In fact, the ensuing SEC investigation was specifically targeted at chatroom postings and the potential motivations of the initiators to influence our share price to their financial advantage.

"Under the foregoing circumstances, we decided that we should file a new application, rather than pursue our right to attempt to get the original one, which carries issues we believe we have already disposed of, reversed on appeal.

"As to our financial strength, we are currently investigating financing options to fund our movement toward commerciality and are pleased with the direction our discussions have taken to date.

"Regarding audit/auditor status, our new auditors, who are fully SEC qualified, are in the process of auditing our two previous fiscal years financial records and preparing our 10-K for the fiscal year ended April 30, 2000. We believe our corporate governance and financial control procedures are at the best standards of corporate practice.

"Vis-a-vis the SEC investigation, in February, I informed the head of investigation that ANTs wished to actively assist the SEC in whatever way possible as we had been doing, and continue to do, since the outset of their activities.

"Our shareholders can also rest assured that we are pursuing all available listing alternatives to the OTC:BB with the objective of providing greater liquidity and a less volatile trading environment for our shares as soon as this can be accomplished."

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan", confident that", "believe", "expect", "intend to", and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties, and actual results could differ materially from those expressed in any forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings, and other risks.