Carnegie International Corp. Agrees to Terms for One Million Dollar Loan and Extends Option to Purchase TeleResources, Inc. of Chicago.

BALTIMORE--(BUSINESS WIRE)--Oct. 13, 1998--Carnegie International Corp. (OTC: BB CAGI) announced today that it has agreed to terms for a one million-dollar loan, which it plans to use primarily for marketing and distributing MAVIS(TM), its recently-introduced voice-driven automated attendant and voice message system.

Lowell Farkas, Carnegie's president and CEO, said the loan is for one year (with rollover provisions) at 3 percent over LIBOR, is secured by non-dilutive restricted shares subject to Rule 144, and is expected to close within 45 days.

A holding company specializing in telephony and telecommunications products, software development, services and distribution, Carnegie introduced MAVIS (for Multi-Language Automated Voice Independent System ) at the Computer Telephony Expo & Demo in New York last month, where it was well received by the trade and media.

Entirely voice-activated, MAVIS communicates intelligently with callers, using advanced, proprietary voice recognition software. It answers incoming calls, recognizes verbal instructions from callers requesting names or departments, and then directs calls accordingly.

The MAVIS interface is available in English and with 16 foreign languages supported through licensed Lernout & Hauspie software, and Dialogic CPU telephony cards.

"MAVIS represents a breakthrough in speech recognition and in auto attendant systems," Farkas said. "Now, with the necessary funding in place to help ensure a successful launch of MAVIS, we will implement an overall distribution program that includes marketing, training, inventory build up and technical support."

Additionally, Carnegie has extended its option to purchase TeleResources, Inc. of Chicago. TeleResources, Inc. is one of the leaders in telecom products and services and the number one Comdial(R) dealer in the U.S.

Carnegie International Corporation (OTC: BB CAGI) is a holding company specializing in telephony and telecommunications products, services and distribution. Its MAVIS(TM) (Multi-Language Automated Voice Independent System) is a breakthrough in speech recognition-driven automated attendant/voice mail systems, using proprietary IVR (interactive voice response) software to recognize/respond to callers.

The entirely voice-driven MAVIS interface is available in English and all foreign languages supported through licensed Lernout & Hauspie (NASDAQ: LHSPF) software, and supports Dialogic (NASDAQ: DLGC) CPU telephony cards.

Carnegie=s primary wholly-owned subsidiaries include: 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; Talidan, a reseller marketing telephone time and information at discounted rates in Europe, South America, and other emerging markets, and ACC Telecom of Columbia, Maryland, a leading reseller of equipment and business telephone systems from Comdial (NASDAQ: CMDL), SONY(R) (NYSE: SNE), Bell South (NYSE: BLS) and Sprint(R) (NYSE: FON).

For the first half of fiscal 1998 ended June 30, Carnegie reported total income of $8.9 million and after-tax basic earnings per share of $0.075. For fiscal 1997, Carnegie reported total income of $6.9 million and after-tax basic earnings per share of $0.07.

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.

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