AXIA to Spin Off Interest in Subsidiary to Shareholders.

Business Editors

SALT LAKE CITY--(BUSINESS WIRE)--Feb. 5, 2001

AXIA Group Inc.(OTCBB: AXIA) Monday announced plans to spin-off a 20 percent interest in Cyberstudio Inc. as the first step in a process designed to enhance shareholder value by creating a new public entity from AXIA's existing shareholder base.

The spin-off will be registered with the Securities and Exchange Commission and will distribute one share in Cyberstudio for every share held in AXIA. The record date for this distribution has not been set pending SEC approval of the registration documentation. AXIA expects that approval to be forthcoming in the second quarter.

The move comes as part of AXIA's new business model that focuses on creating public companies from assets already held in subsidiaries.

Cyberstudio owns a one-story office building located in Kearns, Utah (a suburb of Salt Lake City) that is currently two-thirds occupied. Tenants include the State of Utah Office of the Courts and the Desert Mutual Benefit Association insurance company. The space is leased at an average annual rate of $10.59 a square foot.

Cyberstudio also holds an option of a similarly situated office building that is currently unoccupied. Management expects that as a public entity, Cyberstudio will be in a better position to raise funds required to exercise the current option and to perform renovation work that will make the unoccupied space more attractive to potential tenants.

AXIA is a diversified holding company that provides financial consulting services to private and public companies within a distinctive compensation structure that emphasizes securities-based consideration.

AXIA is also involved in identifying commercial real estate that can be acquired with limited cash infusions tied to favorable financing, improved upon with competent management, and then sold or held as commercially viable real estate. AXIA currently owns commercial and residential real estate located throughout the United States.

For more information on AXIA's real estate holdings, please visit www.cyaa.com. For more information on AXIA's consulting services, please visit www.hudsonconsult.com. AXIA strongly encourages the public to read the above information in conjunction with its Form 10KSB for Dec. 31, 1999, and 10QSB for Sept. 30, 2000. The above documents can be viewed at www.sec.gov.

A number of statements contained in this press release are forward-looking statements which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements involve a number of risks and uncertainties, including the timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. The actual results that AXIA may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.