ATEC Group Inc. Announces 1st Quarter Results; Company Realizes 15th Consecutive Quarter of Profitability.

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Nov. 12, 1998--ATEC Group Inc. (NASDAQ: ATEC) today announced that net sales for the first quarter, ended September 30, 1998, totalled $34,820,833, an increase over $33,072,555 reported for the first quarter ended September 30, 1997. For the three month reporting period, ATEC posted net income of $200,814, or $.03 earnings per share, compared to $471,103, or $.08 earnings per share for the prior year's comparable reporting period. The decrease in net income for the quarter is attributable to charges of $30,400 related to the terminated merger with IATA and losses of $371,840 from the new software division, net of tax benefit, or $.06 per share.

Surinder Rametra, Chairman and CEO of ATEC stated, "Because of the fact that the first quarter is traditionally our weakest quarter, management is quite pleased with the company's performance. Notwithstanding the one time charges associated with the termination of our merger with IATA and losses attributed to our new software division, we would have reflected $603,054 in net income for the current reporting quarter compared to $471,103 reported for the quarter in 1997 -- a 42% gain in bottom line net income. Nonetheless, this marks the 15th consecutive profitable quarter in ATEC's history."

Continuing, Rametra added, "The company's comprehensive strategy for improving gross profit margins resulted in margins increasing from 8.1% in the first quarter 1997 to over 9.3% for this current reporting quarter. It is this type of quantifiable performance that we intend to duplicate in every operating division of the company. In addition, ATEC is committed to growing the company through an aggressive, but intelligent, acquisition strategy."

After acquiring Logix in the 4th quarter of fiscal 1998, ATEC has invested in enhanced staffing, increasing new software division personnel from five employees to over 30. Despite the resulting loss, ATEC expects to begin generating notable results from this division as the fiscal year progresses. In fact, management is intent on delivering record increases in revenue and earnings across the board in fiscal 1999," concluded Rametra. -0-

                           ATEC GROUP INC.
                         FINANCIAL HIGHLIGHTS
                             (Unaudited)

                                            For Three Months
                                           Ended  September 30
                                    -------------------------------
                                       1998                1997
                                    -----------         -----------

Net Revenues                        $34,820,833         $33,072,555

Net Income                              200,814(a)(b)       471,103

Net Income Per Share
     Basic                                  .03                 .08(c)
     Diluted                                .03                 .08(c)

Common and common equivalent share
     Basic                            6,840,027           5,871,718(c)
     Diluted                          7,192,285           5,871,718(c)

a)   Includes one time charges of $30,400 related to terminated merger
     with IATA.
b)   Reflects a loss of $371,840 attributed to the new software
     division, net of tax benefit or .06 per share.
c)   Adjusted for 1:5 reverse stock split completed in November 1997.

Based in Hauppauge, N.Y., ATEC Group Inc. is a leading system integrator and 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.

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.