CDKnet.com Files Form 8-K Re: Acquisition of Valueflash Assets by Elbit Limited Business Strategy Change.

Business Editors

GARDEN CITY, N.Y.--(BUSINESS WIRE)--July 11, 2001

CDKnet.com, Inc. ("CDK" or the "Company")(OTC Bulletin Board: CDKX) announced the filing of SEC Form 8-K detailing the sale of substantially all of the assets and business of its Valueflash.com, Inc.("Vflash") subsidiary to Elbit Limited (Nasdaq: ELBT) for a purchase price of $3.5 million plus the assumption of all but $350,000 of Vflash's liabilities. As part of the transaction, in addition to the acquisition of Vflash's technology rights, CDK granted Elbit a technology license for the continued use of CDK's convergent multimedia technology.

Steven Horowitz, the Company's CEO stated that "this transaction will allow CDK to focus on the establishment of new lines of business which should not require the consumption of more cash than we are able to generate from operations. Valueflash and the "vflash messenger" technology, while very powerful for use in the Internet direct marketing and advertising field, required more resources than the Company could provide on a continuous basis. In a time when the capital markets were becoming less friendly to Internet technology companies generally, Vflash required more financing than we could provide."

"Now the Company will be in a position to enter into more profitable lines of business which do not require the expenses of continuous technology development and maintenance in addition to the ordinary costs of doing business." It is the intention of Company management to seek opportunities in the financial services sector such as private equity financing, fund management, tax oriented insurance products, banking, third party administration of pension and health insurance plans, etc. "We believe that we now are in a position to build shareholder value by acquiring and developing interests in profitable businesses which can be self-sustaining." Further details will be announced in the near future.

The Company will continue to market its proprietary CDK Technology. The technology provides for integrating audio, video and Internet connectivity on a standard compact disc that is designed to increase traffic to a company's web site. The license granted to Elbit enables the Company to exploit this technology through the efforts of the Elbit/Vflash marketing team. CDK 3.0 technology will be used together with Vflash as a distribution tool to enable Elbit/Vflash to leverage its assets in the emerging Digital Marketing Solutions business. The Company believes that this will enable it to generate significant revenues from licensing at a minimal operating cost.

Forward-looking statements in this release with respect to the Company's business, financial condition and results of operations are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the Company's SEC filing.