China Software Anti-Piracy Technology Provided By TTR; Exclusive Arrangement Reached with CICC to Curtail Piracy.

NEW YORK--(BUSINESS WIRE)--Oct. 27, 1998--TTR Inc. (OTC BB: TTRE) announced today that it has signed an agreement with a government-authorized Chinese entity to exclusively supply China's CD-ROM manufacturers and software publishers with TTR's innovative software anti-piracy technology to help prevent the Software Publishers Association estimated $1.4 billion annual loss to the China software industry.

The agreement with the China Intercontinental Communication Center (CICC), an organization responsible for marketing and distributing a broad spectrum of media products in the People's Republic of China (PRC), involves TTR's DiscGuard(tm) technology. DiscGuard(tm) protects PC CD-ROM-based software applications from piracy.

The agreement is significant as it follows several years of U.S. government negotiations with the China government over the issue of pirated software and other intellectual property.

According to information TTR received from the CICC, China's 1998 software market is estimated at $1.7 billion (U.S.) and has experienced an average compounded annual growth rate of 30% in each of the past 10 years with expectations to continue growing at the same rate or higher into the new millennium.

Under the terms of the agreement, the CICC undertook to implement DiscGuard technology such that TTR's DiscGuard-protected share of the applicable Chinese software market will comprise 3.5% in 1999, 10% in 2000 and 15% in 2001, according to Mr. Arik Shavit, TTR's Vice President of International Business Development. Under the terms of the agreement, CICC also undertook to implement DiscGuard in at least three CD-ROM mastering facilities by year-end 1999, and will protect at least one software title of each of the 15 largest Chinese software developers by June 30, 1999.

According to the Software Publishers Association, China's software piracy rate (96%) is second only to Vietnam's (98%) in the world. The dollar loss from piracy in China is significant ($1.4 billion), comprising approximately half the estimated loss in the United States ($2.8 billion).

The agreement was signed in Beijing by Mr. Arik Shavit on TTR's behalf and by Mr. Wang Yuanshun, CICC's Chief Financial Officer and member of its board of directors.

Commenting on the agreement, Mr. Shavit said: "We're very excited and look forward to continuing to work closely with the CICC to achieve our mutual goals while establishing DiscGuard as the standard software protection system in China.

"More American and European software development companies, publishers and electronic game manufacturers can now more safely manufacture, market and distribute their products in China knowing that their intellectual property rights are better protected and their financial returns better ensured."

Steven Barsh, CEO of TTR Inc. said, "TTR`s agreement with the CICC further demonstrates our expansion into key markets in the Americas, Europe, and Asia, and highlights TTR's mission to enable software publishers to increase profitability in the global software market."

Mr. Shavit added, "Recapturing piracy-related lost revenues can increase both Chinese and Western software development companies' profits, enable them to reinvest more R&D dollars in development of innovative new technologies and better products, and reduce their costs. This in turn will benefit their consumers worldwide, as prices will come down while quality remains high.

"In addition to educational and other measures currently used to combat software piracy by the Chinese government and foreign software developers who market and distribute their products in China, TTR's technological solutions can facilitate the establishment of better trade practices and relationships between China and the rest of the world before the start of the new millennium."

TTR, Inc., based in New York, designs, markets and sells proprietary software anti-piracy products. The company's flagship product, DiscGuard, embeds an indelible and non-reproducible digital signature on CD-ROMs that prevents illegal copies from operating. DiscGuard protection is transparent to the end user and is a cost-effective way for a software publisher to reduce piracy of its products.

DiscGuard is a trademark of TTR, Inc.

This press release is available on the KCSA Worldwide web site at www.kcsa.com.

Any statements released by TTR Inc. that are forward looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties which may affect the Company's business and prospects, including economic, competitive, government, technological and other factors discussed in the Company's filings with the Securities and Exchange Commission.