Babystar announces second quarter results.

WESTWOOD, Mass.--(BUSINESS WIRE)--August 28, 1995--Babystar Inc.(NASDAQ:DATA, DATAU, DATAW) today announced the operating results for the second quarter ended June 30, 1995.

                                         (Unaudited)
                            Three months ended   Six months ended
                                 June 30,             June 30,
                           1995          1994     1995          1994

Net sales                $ 7,846,143    $ 0      $11,727,497   $0
Gross profit             $ 1,082,650    $ 0      $ 1,584,184   $0
Other revenue            $    51,651    $ 20,903 $    56,494   $48,903
Operating expenses       $ 1,134,985    $ 22,342 $ 1,747,462   $77,342
Income (loss) from
 discontinued operations $   114,192   ($856,561)  ($182,632)($1,347,561)
Net income               $   113,508   ($858,000)  ($289,416)($1,376,000)
Primary earnings per
 common share                  $0.02     ($0.24)     ($0.05)    ($0.39)
Weighted average number of
 common shares outstanding 5,951,683   3,512,795    5,604,387  3,512,795

Since the company divested itself of its pervious operating subsidiary in November of 1994, and then acquired the stock Datatrend Inc. on Feb. 1, 1995, the business of the company has substantially changed in nature from 1994 to 1995, and as such no meaningful comparison of sales for these two periods is possible. Sales for the second quarter did increase from the first quarter of 1995 by $2.5 million, or 47%. (For purposes of this comparison, sales for the first quarter included preacquisition January sales of Datatrend not reflected in the sales for the six months ended June 30, 1995.) Net income for the second quarter was $113,508, or 2 cents per share as compared to a loss of ($858,000), or (24 cents) in 1994. The net loss for the six months ended June 30, 1995 was ($289,416), or (5 cents) per share as compared to a loss of ($1,376,000), or (39 cents) per share in 1994.

Commenting on the second quarter results, Mark A. Hanson, the company's CEO stated "Babystar and it's wholly owned subsidiary, DataTrend Inc. have continued to focus on evolution of DataTrend's business model. The evolution of DataTrend is intended to transform DataTrend from a `deal based' company into one that has long term contractual relationships with the major computer product manufacturers. The successful development of such relationships, if successful, is intended to generate new sources of revenue. This strategy is designed to make DataTrend be less dependent on market factors such as purchase and sale prices. In the second quarter DataTrend expended significant efforts on the design and construction of a complete production process designed to be flexible enough to handle virtually all types of computer products, including printers, notebooks, computer, monitors and servers. Several hundred units per shift can now be processed."

"I am encouraged by the progress that DataTrend has made over the last two quarters. With the proper systems and infrastructure in place, the company should be in a position to improve its position as a contender in the rapidly expanding returns management and technology transition business," Hanson added.

DataTrend is in the business of purchasing, remanufacturing and selling both new and used personal computers, peripheral components and accessories from well known manufacturers.

CONTACT: DataTrend, Inc.

Yitz Grossman, 212/964-4600

Helen Vess, 617/326-4100, x223