ATEC Group, Inc. Reports Second Quarter Results.

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Feb. 12, 1999-- -0-

                           ATEC GROUP, INC.
                   Financial Highlights (Unaudited)

                For the Three Months Ended    For the Six Months Ended
                      December 31, 1998           December 31, 1998


                      1999         1998         1999           1998
Net Revenues     $ 32,797,105  $36,193,000  $ 67,617,938   $69,211,000

Net income       $     23,474  $   579,397  $224,287(a)(b) $ 1,050,500
Net income
 loss per share
  Basic                   .00          .10          .03            .18
  Diluted                 .00          .10          .03            .18

Common and common
 equivalent
 shares
  Basic             6,840,027    5,898,668    6,840,027      5,898,668
  Diluted           7,192,285    5,898,668    7,192,285      5,898,668

     (a.) Includes one time charges of $30,400 related to terminated
merger with IATA and approximately $400,000 for the establishment of
an E-Commerce site and an Internet Service Division.
     (b.) Reflects a loss of $127,582 attributed to the new software
division, net of tax benefit of .02 per share for the three months
ended 12/31/98 and $499,422 net of tax benefit of .07 per share for
the six months.

According to Surinder Rametra, Chairman and CEO, "ATEC Group has invested heavily into future technologies such as our Y2K software group, E-Commerce, Telecommunications, and the Internet. We feel these investments are going to position ATEC Group for dramatic revenue and earnings growth in the future. We listened to our clients' needs and are responding accordingly. With our strong customer base, and `ONE-STOP-SHOP' concept, we intend to position ATEC with the right technologies and services for capturing more market shares. We are extremely excited about our Y2K division, which has had a fantastic January, and we expect the momentum to continue. Also, our Internet Service will be going online in April and we are very happy with the developments to date on that project. Our E-Commerce site is hopefully, going to be one of the best on the Internet, with over 20,000 products offered."

Based in Hauppauge, New York, ATEC Group, Inc. (Nasdaq:ATEC) is a leading system integrator and provider of a full line of information technology service products. As a one-stop solution provider for the computer needs of businesses, professionals, government agencies and educational institutions, ATEC enters the new millennium with a technological arsenal that includes Year 2000 remediation, multimedia products,video conferencing, system integration, networking, high speed data transmission, Internet, and Intranet ready solutions. In addition, the Company has positioned itself for growth in telecommunications, outsourcing of IT professionals, E-commerce, ISP and offshore software development to provide its clients' technological needs in a cost effective manner.

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.