Carnegie International Corporation to Acquire Voice Quest, Inc.

BALTIMORE--(BUSINESS WIRE)--Oct. 19, 1998--Carnegie International Corporation (OTC: BB CAGI) announced today that it has reached an agreement to acquire Voice Quest, Inc., of Sarasota, Florida, a developer and provider of speech recognition and voice mail technologies and products. Financial arrangements were not announced.

Lowell Farkas, Carnegie's president and CEO said "technological advancements created by Voice Quest, particularly in adding valuable features to voice mail, will compliment and significantly strengthen our already strong MAVIS(tm) automated attendant and voice messaging system."

E. David Gable, Carnegie's chairman and COO agreed, saying "the addition of Voice Quest's software engineers to our existing staff should speed development of system enhancements for future product releases."

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.