Carnegie International Continues Discussions with SEC.

HUNT VALLEY, Md.--(BUSINESS WIRE)--Aug. 18, 1999--

Carnegie International Corporation (AMEX: CGY) said today that it is still in the process of responding to comments by the Staff of the Securities and Exchange Commission on the Form 10-SB and its 1998 Form 10-KSB, which resulted in the trading halt in its stock on the American Stock Exchange.

Carnegie had previously announced that discussions with the Staff of the SEC arose during an ordinary course review of the company's filings. The company is continuing to work with the SEC, as well as with its own auditors and attorneys, to address and resolve those comments.

Certain of the statements included in the Carnegie filings are the subject of class action litigation against the company in the United States District Court for the District of Maryland. Lowell Farkas, Carnegie's president and CEO, said the company "will vigorously defend all claims against it in the litigation."

Farkas described the current period as "very frustrating for all Carnegie management, staff and investors." He said there have been no layoffs or unusual firings, and that the operation of the company and its subsidiaries has continued as in the past.

Farkas said that Carnegie would incur additional legal and audit costs as a result of the SEC review and compliance efforts and to defend the litigation, estimating these costs to be as much as $1,000,000 and saying they would be charged against 1999 operations. He also said that Carnegie would restate its financials for 1997 and 1998 following the completion of the review by the SEC.

"We are taking steps to put these matters behind us," Farkas said, noting that Carnegie management "deeply appreciates the ongoing support of our shareholders."

Farkas said Carnegie's Web site (www.carnegieint.com) will have all information for stockholders, including announcements or press releases concerning the resumption of trading or any other company news.

Carnegie International Corporation (AMEX: CGY) is an Internet support and computer telephony holding company with specialization in telecommunications products, services and distribution, and in E-Commerce and EDI.

This press release contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.