COMTEX Announces Cuts to Operating Expenses and Staff Reductions.

Business Editors/Hi-Tech Writers

ALEXANDRIA, Va.--(BUSINESS WIRE)--June 7, 2001

COMTEX News Network, Inc. today announced the Company plans to take steps to reduce operating expenses.

The Company will reduce its workforce across the board by 15%. Other expense reductions include cutting discretionary spending in areas such as outside consulting, branding and travel. These measures are expected to save the Company significantly on an annualized basis.

"We have made these difficult but deliberate business decisions as a necessary response to fundamental changes in the economic environment," said Charles C. Terry, President & Chief Executive Officer of COMTEX. "These reductions are a result of many of our dot-com customers going out of business resulting in missed revenue expectations. However, business in the financial markets, Wall Street and the corporate application markets remain solid for COMTEX."

"This rightsizing brings our cost structure to a level that enables us to more effectively monetize our distribution network, deliver products to market more effectively and compete more aggressively. With more than 20 years in the content business, COMTEX is well positioned to grow our leadership role in the market and to continue to enjoy financial success," continued Terry.

COMTEX News Network, Inc.

COMTEX News Network, Inc. (OTC BB:CMTX), a full service, business-to-business infomediary, aggregates and redistributes diverse, real-time global news and information to resellers in the Internet, Wall Street and corporate markets. COMTEX' innovative technology gathers nearly 20,000 stories a day from over 10,000 diverse, global sources to create its subject-specific, value-added headline and vertical-market news products for distribution to over 1100 information services and re-distributors throughout the world, reaching millions of end users.

COMTEX' products include CustomWires(R), Newsroom Enhanced Products, News Solutions, Publisher Full-Feeds and Processing Services. Located in Alexandria, VA, COMTEX can be found on the World Wide Web at http://www.comtexnews.net.

Note: All product and company names may be trademarks or registered trademarks of their respective holders. Except for the historical information contained herein, this press release contains forward-looking statements including those about COMTEX' anticipated financial performance for the 2001 fiscal year, demand for the company's products, performance of the sales force, customer retention, etc.

These statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated herein, including the occurrence of unanticipated events or circumstances relating to the fact that COMTEX is in a highly competitive industry subject to rapid technological, product and price changes. Other factors include the possibility that demand for the Company's products may not occur or continue at sufficient levels, changing global economic and competitive conditions, technological and other risks, costs and delays associated with the start-up and operation of major capital projects, changing governmental regulations and other risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission.

COMTEX undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.