BAOA Enters Agreement With First National Communications To Develop Telemarketing Centers; FNC To Issue $2.4 Million Purchase Order To BAOA For Telemarketing Services.

SAN DIEGO--(BUSINESS WIRE)--Aug. 7, 1997--BAOA Inc. (NNOTC:BAOA) Thursday announced that it has entered into an agreement with First National Communications Inc. (FNC) to establish BAOA-owned telemarketing "call centers" in economic empowerment and industrial development zones around the United States.

In conjunction with execution of this agreement, FNC also agreed to provide BAOA with a $2.4 million purchase order for telemarketing services to be provided by BAOA's first call center. The company's management anticipates that the first call center should be fully operational by the end of 1997.

Each call center is expected to employ nearly 200 people and generate more than $6.0 million in annual revenues. The $6 billion outsourcing call service industry has projected an annual growth rate of 60 percent.

FNC is a direct marketing and communication firm consisting of professionals who collectively possess more than 80 years' experience in the successful design, implementation, operation, management and marketing of an extensive range of telemarketing and direct-response services and facilities.

Michael Holleran, president of FNC, stated: "This venture with BAOA represents a tremendous opportunity for our company to enhance our ability to penetrate its operations into the urban markets. Our relationship with BAOA will establish a positive presence with the empowerment and industrial development zone mission in urban America."

"The integration of call centers into BAOA's product and service mix is important to the company's future growth because call centers can deliver substantial operating profits while creating a powerful, direct distribution channel for BAOA's future product line," said Peter Van Brunt, BAOA's president and chief executive officer. "Establishing call centers also offers our company a wonderful opportunity to contribute to the economic empowerment of urban-based communities by hiring and providing comprehensive training to a work force of unskilled individuals who might otherwise be unemployed."

BAOA is committed to becoming a world leader providing novel communications and entertainment products to the African-American urban community through company-owned direct marketing and distribution channels. The company is currently developing a line of "edutainment" board games and CD-ROM products, including its lead product, "African Americans of Achievement."

BAOA also has established a telecommunications division called ATN (Achievers Telecommunications Network), which offers international access to long-distance telephone and billing services promoted primarily through African-American special-interest and religious groups. -0-

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: The statements in this release regarding the company's products, services and markets are forward-looking statements that involve risks and uncertainties, including, but not limited to, products and services, demand and development, technological advances, impact of competitive products and pricing, growth in targeted markets, ability to integrate and leverage acquisitions, and other information detailed from time to time in the company's Securities and Exchange Commission filings. -0-

Please visit the BAOA Web site at http://www.baoa.com .

CONTACT: BAOA Inc.

Charles Pankey, 303/292-4295