ATEC Group, Inc. Announces Strategy to Develop Newly Formed Nexar PC Manufacturing Division Focused On Corporate, Government and Educational Markets.

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--July 15, 1999--

ATEC Group, Inc. (Nasdaq:ATEC) announced today its corporate strategy to develop its newly formed Nexar personal computer manufacturing division. The Division's signature products will incorporate XPA (patent pending) technology -- a premier, easily upgradeable cross processor architecture -- as well as other advanced technologies, and will be capable of running both Windows and Linux-based operating systems. The Division will market its new products to high-end government, corporate, educational and consumer markets through electronic commerce as well as well as aggressive expansion of traditional retail and distribution channels.

Since acquiring certain assets and technological patents from Nexar on March 12, 1999, ATEC Group has devoted significant resources to developing the manufacturing, quality control and customer support infrastructure necessary to launch its new line of products. That infrastructure is now in place. Nexar is headquartered at 180 Turnpike, Westboro, Massachusetts 01581, (Toll free 1-877-242-4846) and will be responsible for research and development, customer service and depot warranties of the company's new line of personal computers.

"The bulk of our manufacturing is out-sourced to a major PC assembly company that has ISO 9002 certification and currently assembles products for other major brands including IBM, Compaq and Hewlett Packard," said ATEC Group CEO Surinder Rametra. "This outsourcing agreement allows ATEC-Nexar to procure high quality components economically so we can compete effectively in lucrative high-end markets." Rametra noted that the off-brand share of the overall personal computer market has risen dramatically from 30 percent in 1997 to 50 percent in 1999.

To compete in this rapidly expanding market, ATEC has developed three new lines of personal computers. These products offer value, flexibility and give clients the ability to extend the life of their technology within the same footprint, i.e., built-in protection against obsolescence. The three new lines of personal computers include:

-- ENABLE Series, our Value line already in production, aimed at the cost conscious individual consumer.

-- EMPOWER Series, our performance line available Third Quarter 1999, aimed at corporate users who require value and the flexibility of standard options and components.

-- INFINITY Series, available by year end 1999, aimed at corporate end-users who buy in large quantities and want to protect their significant technology investments from technical obsolescence. This series will incorporate Nexar's patent-pending XPA technology, which uses standard components but allows for processor and memory upgrades across processor generations within the same PC footprint.

ATEC Group plans to aggressively market its new Nexar products by expanding its outside retail and distribution channels as well as over the company's Internet site now under construction which will be available soon.

ATEC Group is committed to assist former users of Nexar technology and offer a helping hand to guide them through this transition. With the exception of certain proprietary parts that are not available, former Nexar customers can take advantage of the following:

-- a depot warranty on existing Nexar products acquired after January 1, 1998 (clients will be responsible for freight charges). Note: products acquired prior to December 31, 1997 will be subject to parts and labor costs;

-- a cash rebate for new Nexar technology; and

-- a limited number of upgrades for old XPA systems, on a first-come-first-serve basis.

Management notes that although ATEC has no obligation to former Nexar customers, the Company plans to provide these services as part of its commitment to providing world-class customer service. (Full details may be obtained by calling the customer service number at 1-877-242-4846.)

"The Nexar acquisition represents a fundamental change for ATEC Group," said CEO Surinder Rametra. "The XPA technology allows us to design a premier product capable of meeting the needs of high-end users who want protection from the technological obsolescence that has -- up until now -- characterized this industry. Coupled with a manufacturing capability that produces PC's at a competitive price, we believe we're not only ahead of the technology curve, but that we can compete effectively with other manufacturers."

Based in Hauppauge, New York, ATEC Group, Inc. is a PC manufacturer of Nexar XPA technology, a leading system integrator and a provider of a full line of information technology products and services. As a one-stop company for the computer needs of businesses, professionals, government agencies and educational institutions, ATEC enters the new millennium with a technological arsenal that includes Y2K remediation solutions, computer hardware, software, connectivity devices, multimedia products, data communication via satellite, video conferencing, system integration networking, high speed data transmission, graphic arts, Internet and Intranet. In addition, the Company has positioned itself for growth in telecommunications, outsourcing of IT professionals, and offshore software development. For more information on ATEC Group, please visit the Company's web site at www.atecgroup.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions, and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.