Carnegie International Sells Subsidiary to Original Owner for $3.5 Million.

Business Editors

BALTIMORE--(BUSINESS WIRE)--March 30, 2001

Carnegie International Corporation, Inc. (OTC BB: CGYC), an Internet support and computer telephony holding company, said today it has sold a wholly-owned interconnect subsidiary to its original owner for $3.5 million, concurrently ending a pending dispute between the parties.

Carnegie Chairman E. David Gable said the sale of Harbor City Corporation, d.b.a. ACC Telecom of Columbia, was completed earlier this week to former owners Barry and Susan Hunt.

Hunt was president and Mrs. Hunt was an employee of ACC Telecom when it was acquired by Carnegie in May of 1998. Mr. Hunt later served as a member of Carnegie's Board before resigning on March 1.

Gable said that the company "had been unhappy for some time with the results of our marketing agreement with ACC for MAVIS(TM), Carnegie's voice-activated automated attendant system. We believe," said Gable, "that ACC was not the right partner for MAVIS, and both our management and the Hunts were unhappy with the arrangement. The sale of ACC now frees Carnegie to pursue other options, including marketing agreements for MAVIS."

Lowell Farkas, president of Carnegie, said the sale of ACC "provides $700,000 in needed cash, and is in keeping with our announcement last month that one or more of the telecom subsidiaries would be sold." He said the company "will continue restructuring for the remainder of the year and would take a charge to earnings for one-time write downs, including impairment charges.

"Management is working to have the company well positioned when the market rebounds," said Farkas "and is taking all necessary actions to prepare." He said Carnegie will file form 8-K with more detail, has filed form NT 10-K for a 15-day extension, and expects to file form 10-KSB by April 15.

About Carnegie International Corporation

Carnegie International Corporation (OTC BB: CGYC, www.carnegieint.com) is an Internet support and computer telephony holding company with specialization in telecommunications products, services and distribution, and in E-Commerce and EDI.

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.