Appiant Technologies Reports Third Quarter 2001 Financial Results; Growing Subscriber Base for Recently Launched inUnison 2.1 Paves Clear Path for Revenue Growth.

Business Editors/High-Tech Writers

PLEASANTON, Calif.--(BUSINESS WIRE)--Aug. 14, 2001

Appiant Technologies (Nasdaq:APPS)

Highlights

-- Company Launched inUnison(TM) 2.1 and Already has Active Subscribers on the
System

-- Infotel Revenues up 47% to $3.6 million from Q3 2000

-- Call Center Generates Total Revenues of $3.2 million for First Year in
Business through Q3 2001

-- Enterprise Business is up 8% to $2 million From Q3 2000

Appiant Technologies, Inc., (Nasdaq:APPS), a leader in Unified Communications and Unified Information (UC/UI), today reported its third-quarter results for the period ended June 30, 2001. The Company generated increased revenues and profits from Enterprise, Infotel and Call Center businesses compared to the same period last year while focusing efforts to meet increasing customer demand for inUnison(TM). Appiant successfully launched inUnison(TM) 2.1 and continues to activate accounts for a growing customer base.

Key Financials

Consolidated Revenues for the three months ended June 30, 2001, were $6.1 million compared with $4.3 million for the same period last year, representing an increase of 43%. Revenues for the nine months ended June 30, 2001 were $18.7 million compared with $21.6 million for the same period last year.

Third fiscal quarter net loss, excluding one-time non-cash deemed interest on financing of $7.2 million and $3.7 million of one-time write-offs associated with our first data center, was $4.7 million or a loss of $.31 per share, compared to a net loss of $3.6 million, or a loss of $.33 per share for the same quarter of fiscal 2000.

EBITDA for the third fiscal quarter was a loss of $3.3 million, or an EBITDA loss of $.22 per share, compared to an EBITDA net loss of $1.2 million, or an EBITDA loss of $.11 per share for the same quarter of fiscal 2000.

inUnison(TM) 2.1 -- Introduces Next-Generation Connectivity to

Growing Subscriber Base

Appiant recently launched the inUnison(TM) UC/UI solution and began activating subscribers on the system August 1, 2001. The Company is planning on putting 1,000 subscribers on the system in August and 20,000 subscribers in September. Appiant also has outstanding purchase orders for over 100,000 additional inUnison(TM) mailboxes to be deployed in the fourth quarter. The UC/UI service rolls out with prices ranging between $9.99 to $39.99, depending upon customer choices of features and volume discounts. In addition, Appiant will derive revenue opportunities in telephone and long distance charges, minute sharing, and separately advanced charged features. Appiant projects that its current orders for inUnison(TM) mailboxes will enable the Company to regain profitability in accordance with its business plan.

Infotel, Singapore -- Revenues Up 47% From Same Period Last Year

Infotel revenues for the third quarter ended June 30, 2001 were $3.6 million, up 47% from $2.4 million for the same period last year. This division of the Company remains profitable with revenues deriving from the distribution and integration of electronic products including telecommunications and services for communication, networking, test instrumentation system integration, and project management. Infotel supports products from leading manufacturers including Motorola, Nokia, RSA Security, Intel, Foundry Networks, Raytheon and Rohde & Schwarz Gmbh.

Global Call Center Business -- Continues to Secure New Clients

During First Business Year

Call Center revenues for the third quarter ended June 30, 2001 were $567,000, bringing the nine-month total to $3.2 million. Appiant started the new Call Center Business and brought it to its current profitable state in less that one year. Revenues primarily resulted from the addition of a large Indian Corporation to Appiant's current client base. With its expertise as a pioneer in transcontinental call center management applications, Appiant positioned its call centers to meet the demands of today's web-based market by moving away from the traditional telephone answering services into a multimedia contact center drawing on the Internet as a communication tool. Strategically basing the call center in India, the Company leverages India's large pool of highly educated, skilled and cost effective human resource base and leading-edge software services.

Enterprise Business -- Revenue Up 8% from Same Period Last Year

Enterprise business revenues for the third quarter ended June 30, 2001, were $2.0 million, up 8% compared to $1.8 million for the same period last year. The Enterprise Business division of the business remains profitable with revenues resulting from a variety of initiatives that delivered on key accounts including contracts with the County of Alameda, State Bar of California, Voicestream Wireless and Hitachi America, Ltd. The Company's Enterprise Systems Integration Business offers a broad range of products that support a number of enterprise applications: telephone answering, automated attendant, voice messaging, paging, facsimile messaging, interactive voice response, LAN integration and networking, and technical support.

"We are very excited about our successful launch of our next-generation inUnison(TM) 2.1 and gratified by the favorable response we have received from our early customers," said Doug Zorn, CEO of Appiant. "We now have customers up and running on the system and are continuing to service the growing demand for our leading-edge solution. Our recent product launch is a major win for the Company as Management continues to focus our collective efforts to meet Appiant's goal to return to profitability by the end of the calendar year."

About Appiant Technologies, Inc.

Appiant Technologies, Inc., (Nasdaq:APPS), is a leading Unified Communications and Unified Information (UC/UI) software development company, delivering next generation UC/UI applications. Its inUnison(TM) portal enables Service Providers, and Enterprises to offer tools to manage all telephone, email, voice mail, facsimile, and notification needs in real-time anywhere, anytime and in a highly personalized manner using virtually any communication device such as a PC, PDA, telephone, or cellular phone. Appiant's enabling technologies include a speech recognition engine that provides seamless access to its inUnison(TM) distributed portal architecture, allowing information integration from multiple sources.

Appiant is a member of the Cisco New World Ecosystem partner program and has been designated a Cisco Powered Network member. Appiant is headquartered in Pleasanton, CA, and has offices throughout the United States and abroad. More information available at http://www.appiant.com/.

Note: Except for historical information, the matters set forth in this press release are forward-looking statements made pursuant to the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are made as of today, based on current management expectations, and the company disclaims any duty to update such statements. All forward-looking statements, including those in this press release, are subject to certain risks and uncertainties that could cause actual results to differ materially.

Note to Editors: inUnison(TM) is a trademark of Appiant Technologies.

                      Appiant Technologies, Inc.
                 Consolidated Statements of Operations
                              (Unaudited)

                      Three Months Ended         Nine Months Ended
                           June 30,                   June 30,
                      2001         2000          2001         2000

Net Sales         $ 6,124,000  $ 4,274,000   $18,739,000  $21,616,000
Cost of Sales       5,559,000    3,095,000    14,994,000   14,658,000
                  ------------ ------------  ------------ ------------
Gross Margin          565,000    1,179,000     3,745,000    6,958,000

Selling, General
 & Administrative   3,746,000    2,497,000    13,766,000    9,255,000
Research and
 Development          965,000       36,000     2,175,000      134,000

Amortization of
 goodwill and
 other intangibles    558,000      159,000       960,000      478,000
                  ------------ ------------  ------------ ------------
Total Operating
 Expense            5,269,000    2,692,000    16,901,000    9,867,000

Loss from
 Operations        (4,704,000)  (1,513,000)  (13,156,000)  (2,909,000)

Interest Income        39,000       45,000       219,000      159,000
Interest Expense   (7,576,000)  (1,837,000)   (8,929,000)  (2,122,000)
Other              (3,282,000)    (167,000)   (3,323,000)    (169,000)
                  ------------ ------------  ------------ ------------
Total Other
 Expense          (10,819,000)  (1,959,000)  (12,033,000)  (2,132,000)

Loss before
 Taxes            (15,523,000)  (3,472,000)  (25,189,000)  (5,041,000)
Income Taxes           54,000      147,000       280,000      271,000
                  ------------ ------------  ------------ ------------
Net Loss          (15,577,000)  (3,619,000)  (25,469,000)  (5,312,000)

Preferred
 Dividends                 --           --     7,626,000        2,000
                 ------------- ------------ ------------- ------------
Net Loss
 - Common        $(15,577,000) $(3,619,000) $(33,095,000) $(5,314,000)
                 ============= ============ ============= ============

Net Loss
 per share -
  Basic and
  Diluted        $      (1.05) $     (0.33) $      (2.42) $     (0.54)
Shares used in
 per share
 calculation -
  Basic and
  Diluted          14,854,000   10,834,000    13,684,000    9,900,000

EBITDA           $ (3,276,000) $(1,182,600) $(10,441,000) $(2,051,200)


                       Appiant Technologies Inc.
                      Selected Balance Sheet Data
                 June 30, 2001 and September 30, 2000

                                        (Unaudited)      (Audited)
                                          June 30,      September 30,
                                           2001             2000

Cash and Cash Equivalents             $  4,090,000     $  5,719,000
Current Assets                        $  9,611,000     $ 12,197,000
Total Assets                          $ 52,111,000     $ 38,785,000
Current Liabilities                   $ 32,045,000     $ 17,861,000
Stockholders' Equity                  $ 15,378,000     $ 16,207,000
Tangible Net Worth                    $  4,267,000     $ 13,764,000