Banyan Announces Second Quarter Results.

COLORADO SPRINGS, Colo.--(BUSINESS WIRE)--Aug. 19, 1999--

Banyan Corporation (OTC BB:BANYE) announces the release of its second quarter and year-to-date results.

Revenues for the quarter ending June 30, 1999, Banyan generated revenues of $33,304, down 20% from the same period a year ago. The net loss for the period was ($91,911), or ($0.01) a share, which was an increase of 43% over the same period a year ago. Gross margins improved significantly from 36% to 66%.

For the six months, Banyan generated revenues of $64,341, down 36% from the same period a year ago. The net loss for the six months was ($160,895), or ($0.02) a share, which represented a decrease of 3% over the same period a year ago. Gross margins for the period improved from 22% to 61%.

Cameron Yost, Banyan's president and chief executive officer, stated, "While we are disappointed with our earnings results for the periods reported, we have been focusing more of our efforts on building and expanding our product offerings.

"Recently we have announced two acquisitions which will provide Banyan with a broad and diverse product lineup that will appeal to any customer, whether they are a business or a consumer. With these new products and some new personnel we are adding, we are very confident and excited about the direction the Company is moving in.

"Over the next quarter we will be developing and implementing a new marketing campaign to unveil and introduce our new products to the marketplace in anticipation of a strong selling season."

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                          BANYAN CORPORATION
                 Consolidated Statement of Operations
                             (unaudited)

                    - Three Months Ending -     - Six Months Ending -

                       6/30/99    6/30/98         6/30/99    6/30/98

Sales                  $33,304    $41,869         $64,341   $100,355
Cost of Sales           11,487     26,763          24,930     78,172
                       -------    -------         -------   --------
   Gross Profit        $21,817    $15,106         $39,411    $22,183

Selling, general and
 administrative
  expense              110,920     74,647         184,806    170,831

(Loss) from
 operations           ($89,103)  ($59,541)      ($145,395) ($148,648)
                       -------    -------        --------   --------
Other income
 (expense):
  Interest expense      (2,808)    (4,783)         (5,605)   (16,509)

  (Loss) on sale
    of assets              --         --              --        (236)

  Equity loss in
   Anything Internet       --         --           (9,895)       --
    Corp.

Income (loss) before
 provision for
  income taxes         (91,911)   (64,324)       (160,895)  (165,393)

Provision for
 income taxes             --          --              --         --

Net income (loss)     ($91,911)  ($64,324)      ($160,895) ($165,393)
                       =======    =======        ========   ========
Earnings per share
 (weighted)             ($0.01)    ($0.01)         ($0.02)    ($0.03)
                         =====      =====           =====      =====
Weighted average
 number of common
 shares outstanding  9,496,455  7,735,129       9,428,537  6,590,128

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Banyan Corporation is a publicly traded holding company focused on investing in and building a network of operating subsidiaries engaged in designing, manufacturing and marketing products and services aimed at the personal computer market, the notebook segment in particular which is also the fastest growing segment of the personal computer industry, and Internet e-commerce.

Banyan currently sells a line of hard-sided protective carrying cases for notebook computers under the DoubleCase brand name and controls 26% of Anything Internet Corporation. Banyan's products are currently available through distribution from Ingram Micro and sold through a wide variety of Internet e-commerce storefronts, computer mail order catalogs, several of the largest U.S. computer retailers, Value Added Resellers (VARs), a number of overseas vendors and to the U.S. government

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Banyan Corporation) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the high technology industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of Banyan Corporation. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, changes in federal or state tax laws, and market competition factors.