Alydaar Acquires Next Generation Web Server Technology; Virtual Web Sites Provide Real Time Browser View of an Organization's Data.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Feb. 17, 1999--Alydaar Software Corporation (NASDAQ: ALYD) announced today that it has acquired next generation web server technology from Pencom Systems, Inc., a New York based private company. Terms of the deal were not disclosed.

The technology will become the first Virtual Web Server (VWS) available in the market. A Virtual Web Server can provide access to any information across the Internet, extranets and intranets, in real time to all users -- employees, customers, and suppliers. The technology ties the knowledge stored in legacy applications, data warehouses, client/server systems, and enterprise resource planning (ERP) systems and presents the selected information in a browser format across the internet, corporate intranets and extranets.

"This technology permits the concept of Enterprise Information Portals to become a reality. The Virtual Web Server is a powerful solution to live data manipulation in real time across the enterprise via the internet or a corporate extranet or intranet." said Robert Gruder, Alydaar's Chairman and CEO.

"Imagine being able to collaborate on a legal document or contract at several different locations while the Virtual Web Server, on the fly, authenticates each person and permits only certain people to edit and view specific pages or paragraphs. In addition to viewing data in real time, The Virtual Web Server can personalize web pages to each person on the fly. We can "tune" the portal according to a person's security level or access authority," said Gruder

The Virtual Web Server also allows a company to present and use its unstructured data in Web format. Typically, ninety percent of a company's data is unstructured, i.e. data not residing in a database. Examples of unstructured data are: Microsoft's Word documents, email, web documents, purchase orders, research reports, engineering drawings, video, time sheets, claims reports, etc.

Until the introduction of Alydaar's Virtual Web Server (VWS), organizations couldn't present unstructured data in a web format unless they scanned each piece of data and then converting the image to HTML; a costly and timely proposition. Alydaar's Virtual Web Server takes unstructured and structured data and presents them in a HTML or XML format instantly by making the data an object. The end user can then view the data on a web page at any moment in time.

As an example of the speed users can achieve posting documents with the Virtual Web Server, Nizkor, at www.nizkor.org, a Holocaust information Web site, used the Virtual Web Server technology to post two-and-a-half volumes of Nuremberg trials transcripts in one week. (Nizkor officials estimated that manual transcription of the transcripts would have taken them three months, then another three months to convert the transcribed text into HTML.)

The Virtual Web Server is designed for business users who want to provide quick and easy access to data from multiple sources, especially legacy applications. Users can get access to the data regardless of where that data is stored and how it was created--to any desktop computer either across a corporate network or via the Internet. Applications range from publishing to financial services and e-commerce. These include:

-- sites with added security where certain portions of information

may be excluded from the presentation depending on the user's

access privileges;

-- multi-lingual sites where the client's domain name is used to

determine the preferred language for the response;

-- Commerce sites where user profiles (e.g. preferred payment

methods, previous orders, interests, preferences, etc.) determine

the most relevant content to present;

-- Internal corporate sites where each employee may have a preferred

user interface to access corporate data and communicate with

colleagues; and

-- Sites which permit lines of business to transact business in real

time, such as a Sales Force Automation applicat ion directly

tying into an Inventory and Finance application to conduct a

multiple business transactions with a single entry.

"Because it enables application developers to divorce raw data from the way it is presented, and provides flexible access to legacy data, I believe the Virtual Web Server is an important step in changing the way we build applications for the Web environment," said Gruder.

The Virtual Web Server is written entirely in Java and is server-independent. The Alydaar Virtual Web Server can be deployed on any platform and, using the Servlet API, can plug into all of the major application servers on the market today, including Oracle (Nasdaq: ORCL), Netscape (Nasdaq: NSCP), Microsoft (Nasdaq: MSFT), Sun (Nasdaq: SUNW) and Apache.

The technology is currently installed at several sites including, The Hearst Corporation, the Israeli Power Company, and United Bank of Switzerland (UBS).

Alydaar Software Corporation will hold a conference call to discuss recent acquisitions and strategic busin ess strategy and directions. The call will be held on Monday, February 22nd at 10:00 AM. To participate on the conference call, please call 800-475-8413. (International callers must dial, 415-228-4643.) The passcode for the call is "Alydaar Software."

Alydaar Software Corporation is a worldwide developer of Enterprise Information Portals. Alydaar provides management consulting, design, development and the deployment of Virtual Information Portal solutions. Additionally, Alydaar assists organizations in transforming their current legacy information systems architecture to support a heterogeneous, scalable, flexible, and ubiquitous internet/intranet architecture. Alydaar also offers Year 2000 services utilizing its SmartCode technology, remediating or auditing most computer languages on most hardware platforms. Alydaar's clients include: 3M (NYSE: MMM), Advanced Micro Devices (NYSE:AMD), DuPont (NYSE: DD), Kelly Services (Nasdaq: KELYA), McDonnell-Douglas (NYSE: BA), Nabisco (NYSE: NA), British Airways (NYSE: BAB), Northern States Power (NYSE: NSP), RJ Reynolds (NYSE: RN), TOTAL (NYSE: TOT), OMG World-wide, and Whirlpool (NYSE: WHR), among others. More information about Alydaar Software Corporation and its services can be found on the World Wide Web at http://www.alydaar.com.