Applied Terravision Systems Reports First Quarter Results; ATS Maintains Revenues in Spite of Y2K Investment Freezes.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Feb. 23, 2000

NOTE: All figures in Canadian dollars unless otherwise noted.

Applied Terravision Systems Inc. (ATS) (CDNX:TER) today reported first quarter Fiscal 2000 (Dec. 31, 1999) revenues of $5.965 million, a modest decrease of 4 percent, the result of the one-time phenomenon of Y2K. Earnings per share decreased marginally from $0.00 in Q1 F1999 to ($0.01) in Q1 F2000. Comparative results are as follows:

Q1 End December 31
(000's except per share data)           Q2000             Q1999
------------------------------         -------           ------
                                        $ CDN            $ CDN

Revenue                                  5,964            6,195
Cost of Sales                              490              505
Gross Margin                             5,475            5,690
Operating Expenses                       4,296            3,684
Net Operating Cash Flow                  1,179            2,006
R & D                                      786            1,115
Amortization of Application
 Software and Goodwill                     286              369
Net Income                                (324)              30

Cash Flow Per Share                       0.01             0.03
Earnings Per Share                       (0.01)            0.00

There were a total of 26,995,171 and 22,766,977 shares issued and
outstanding for their respective periods

Significant highlights for the quarter included an increase of 12 percent for implementation services revenues from $2.669 million to $2.982 million. Software maintenance revenue increased 13 percent from $1.682 million to $1.894 million while software license revenues were down as a result of Y2K stagnation, a one-time phenomenon. Normal volumes for license fees will begin modestly in Q2, and grow on target in Q3 and Q4. Gross margin revenues were $5.475 million as compared to the $5.690 million for the first quarter of fiscal 1999.

During the quarter Applied Terravision continued expansion of its e-Business in the United States with confirmation of the award of the second year of the five-year Trust Asset and Accounting Management System (TAAMS) to the company by the U.S. Bureau of Indian Affairs. The value for the second contract year is $6.658 million. Additionally, Applied Terravision continued to work on the Bank of America contract for Trust Asset Management, which will be deployed utilizing e-Business methodologies, and also implemented e-Business for oil and gas companies utilizing its Dallas "superserver."

In December 1999 Applied Terravision continued to aggregate customers with the purchase of PetroComp Systems from TexSYS Corporation, a private company based in Dallas. PetroComp Systems is a 21-year-old Houston provider of integrated financial and operation system software to more than 200 companies.

Additionally, ATS released two new products to the market during the first quarter of fiscal 2000:

-- enVision, an advanced e-Business modular system, which includes all of the
components necessary for financial and joint-venture accounting, budgeting and
corporate planning. enVision allows companies to track short-term profits and
long-term growth to ensure their competitive position and;

-- Terravision PreView, which allows ATS customers to manage the full range of
their asset information by providing complete, system-wide integration.
Terravision PreView enables customers to evaluate changes in revenue and
production rates from their assets and determine the net present value
resulting from acquisition, exploration or development activities in focused
areas plus measure real return on their investment in these areas.

About Applied Terravision

With offices in Calgary, Dallas and Houston, Applied Terravision Systems provides mission-critical e-business information solutions that effectively manage the complex ownership of revenue-producing assets for government organizations, blue-chip companies and small businesses around the globe. This news release and more information are available at www.atsi.com.

Note to Editors: The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.