Carnegie International Completes Initial MAVIS Shipments to ALLTEL; Moves Forward on Acquisitions, Announces Sale of a Subsidiary.

BALTIMORE--(BUSINESS WIRE)--Feb. 16, 1999--Carnegie International Corporation (OTC BB:CAGI), said today it has completed the first U.S. shipment of its MAVIS(tm) auto attendant and voice mail/message system to ALLTEL (NYSE:AT), distribution centers, and moved forward on acquisitions and sales of subsidiary companies.

Lowell Farkas, Carnegie's president and CEO, said shipments have been made to all of ALLTEL's distribution centers in the U.S. In December, Carnegie signed a definitive supply agreement with ALLTEL Supply, a business unit of ALLTEL, for domestic distribution of its proprietary MAVIS system. The agreement enables ALLTEL Supply to distribute MAVIS to its affiliates and non-affiliates in the U.S., including an additional 500 Comdial (Nasdaq:CMDL), dealers to Carnegie's U.S. sales channel.

Farkas said Carnegie is committed to 48-hour turnaround on shipments of MAVIS systems to ALLTEL distribution centers. "By having a quick, on-demand turnaround," Farkas said, "ALLTEL benefits by carrying limited inventory and by being assured of always having the most up-to-date, state-of-the-art MAVIS systems." Farkas said that ALLTEL will feature MAVIS in its Computer Telephony Expo booth at the Los Angeles Convention Center, March 2-4.

MAVIS (Multi-Language Automated Voice Independent System) is the premier voice-activated auto attendant and voice mail/message system, communicating intelligently with callers via advanced, proprietary voice recognition software. The MAVIS interface is available in English and all foreign languages supported through licensed Lernout & Hauspie (Nasdaq:LHSPF) software and Dialogic CPU (Nasdaq:DLGC), telephony cards.

Definitive Agreement to Acquire Paramount

Continuing its program of strategic corporate acquisitions, Farkas said Carnegie has reached terms for a definitive agreement to acquire Paramount International Telecommunications of Vista, California. It is anticipated that the transaction will close by March 15. Founded in 1994 and privately-held, Paramount focuses on serving hotels and other businesses, primarily in 0+/- call auditing and international one-plus sectors. Upon the signing of the agreement, Farkas said, financial terms will be announced.

Farkas said Paramount has in excess of $20 million in contracted business for 1999, with an anticipated profit approaching $4 million. "Having Paramount's technology and customer base will ease MAVIS's entry into the hospitality industry through telephony-oriented distributors," he said, noting the company will remain in Vista and operate as a wholly-owned subsidiary.

Carnegie Acquires Phone Stop, Inc.

Farkas said that Carnegie will also acquire Phone Stop, Inc., of Chicago, an authorized Ameritech (NYSE:AI), reseller of cellular phones, pagers and related services. He said completion of the acquisition is anticipated by March 1, and that Phone Stop will complement Carnegie's overall distribution strategy.

In addition, Farkas said Carnegie plans to complete acquisition of TeleResources, Inc., of Oak Park, Illinois, in the second quarter of 1999. TeleResources is one of the nation's foremost telecom resellers and the No.1 Comdial(R) (Nasdaq:CMDL), dealer in the U.S. Carnegie acquired an option to purchase TeleResources in August 1998.

TeleResources is the second major Comdial reseller and member of its prestigious Platinum dealer program to join forces with Carnegie. ACC Telecom of Columbia, Maryland, the No. 2 Comdial dealer, was acquired by Carnegie a year ago, bringing more than 2,700 customers and revenues of $3.4 million to the fold. Together, TeleResources and ACC represent some 7% of Comdial sales domestically.

Carnegie to Sell Talidan Subsidiary

Farkas also announced that Carnegie has signed a letter of intent to sell its Talidan Limited subsidiary, a reseller based in Brazil which markets telephone time and information at discounts in Europe, South America, and other emerging markets, to The Entertainment Internet, Inc. (OCT BB:EINI), of Los Angeles. Talidan had been acquired by Carnegie in September of 1997. Farkas said Talidan's business no longer fit with the company's business model, and that its sale will result in a minimum gain of $500,000 to Carnegie.

Annual Earnings Out Soon

Completing the series of announcements, Farkas said Carnegie, which became a fully reporting company in December, will release its financial results for 1998 by March 1st.

Carnegie International Corporation (OTC BB:CAGI), www.carnegieint.com, is a holding company specializing in Internet, telephony and telecommunications products, services and distribution. Carnegie's primary wholly-owned subsidiaries include: RomNet Support Services, Inc., an Internet, e-business and technical support services company based in Boston; Profit Through Telecommunications (Europe) Ltd. (PTT), a telecommunications software company providing business solutions utilizing proprietary speech recognition, touch tone and bar code responses to send and/or receive information; ACC Telecom of Columbia, Maryland, a leading reseller of equipment and business telephone systems from Comdial, SONY(R) (NYSE:SNE), and Sprint(R) (NYSE:FON), and Voice Quest, Inc., of Sarasota, Florida, a developer and provider of speech recognition and voice mail technologies and products. On December 28, 1998, Carnegie became a fully reporting company under the Securities and Exchange Act of 1934.

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 in oral statements or other written statements made or to be made by Carnegie International Corporation) contain statements that are forward-looking, such as statements relating to the future anticipated direction of the telecommunications 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 Carnegie International Corporation. These risks and uncertainties included, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, change in Federal or state laws, and market competition factors.

Note to Editors: MAVIS is a trademark of Carnegie International Corporation. Other trademarks are properties of their respective owners.