Atlantic Systems Group Inc. Completes Annual and Special Meeting.

Business Editors

FREDERICTON, New Brunswick--(BUSINESS WIRE)--July 24, 2002

Atlantic Systems Group Inc. ("ASG" or the "Company") (TSX Venture Exchange:YGT) held its 2001 annual and special meeting of shareholders yesterday, on July 22, 2002, in Fredericton, New Brunswick.

At the meeting, shareholders approved the appointment of Gustav Vik, Don Reid, Ian Grant, Peter Crossgrove, Per Johansson, Roy Nicholl and Michael Lang as directors of the Company and approved Grant Thornton, LLP as the Company's auditors. The resolution to continue the Company under the laws of the Cayman Islands was not approved.

ASG also announced that it has completed a small purchase contract with Aliant Telecom with respect to the deployment of Passwerks on a variety of Aliant network elements. Revenues from the Aliant contract are expected in the third quarter of 2002. ASG also announced that it has completed a Teaming Agreement with Nortel Networks Inc. This agreement replaces a supplier agreement between ASG and Nortel that was executed in June, 2000. Under the Teaming Agreement, ASG will design, develop, market and sell its generally available software as a network access control and security (NAC&S) solution for a wide variety of Nortel switching elements.

ASG also disclosed that negotiations are continuing with a large, US-based telecom service provider with respect to the purchase of its Passwerks software on selected Nortel Networks equipment within the service provider's network. ASG is also engaged in discussions with a variety of other US and European based telecom service providers. There can be no assurance that the Company will be successful in converting the negotiations or discussions into firm customer orders.

Finally, ASG announced its intention to further reduce the Company's operating expenses. Don Reid, President and Chief Executive Officer of ASG expressed concern about the telecom industry fundamentals and said that ASG must lower its cost structure in the expectation of continued telecom industry turmoil. "We have been engaged in numerous customer negotiations, each of which has taken significantly more time than we would have expected at the same time as industry conditions are continuing to deteriorate," said Mr. Reid. Mr. Reid went on to say, "Without the completion of additional customer contracts in the near future, we will be compelled to reassess our strategy and financial position."

About ASG Technologies

ASG Technologies is a software developer of core network solutions, specifically designed for Service Providers and telecom OEMs. ASG's principal product, Passwerks, is a network access control and security (NAC&S) solution for network elements that provides single sign-on authentication; role based network wide access control; dynamic account log-on to selected network elements; encrypted transfer; event driven audit capabilities and centralized administration. Headquartered in Fredericton, NB, Canada, ASG has offices in Raleigh, North Carolina, The Netherlands and Great Britain.

The common shares of ASG are listed and posted for trading on the Canadian Venture Exchange (TSX Venture Exchange: YGT). There were 25,183,048 common shares outstanding as at June 18, 2002.

For more information on ASG, call 506-460-5400, 1-866-PASSWERKS or visit the Company's web site at www.ASGTechnologies.com.

Note: This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of ASG Technologies, which involve risks and uncertainties. These risks and uncertainties may cause ASG Technologies' actual results to differ materially from those contemplated by the forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet and telecommunications concerns, constantly changing technology and market acceptance of the company's products and services. Investors are also directed to consider the other risks and uncertainties discussed in ASG Technologies required financial statements and filings. All other companies and products listed herein may be trademarks or registered trademarks of their respective holders.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.