Colonial Data & US Order to join forces in telecom venture.

NEW MILFORD, Conn.--(BUSINESS WIRE)--Jan. 17, 1995--Colonial Data Technologies Corp. (AMEX: CDT) and US Order, a subsidiary of WorldCorp (NYSE: WOA), announced today an alliance covering the next generation of consumer telephones: the ADSI capable "smart telephone" with an integrated display screen.

ADSI, the analog display services interface protocol, developed by Bellcore, is the emerging communications standard for advanced telephone network services.

"Every thirty years, the telephone undergoes a fundamental revolution, both in design and function," said Robert J. Schock, president and chief executive officer, Colonial Data. "The next generation of consumer telephones will incorporate a visual display screen and the intelligence of a personal computer. With this new telephone, consumers will access a variety of services, including Caller ID name and number, voice mail, enhanced directory assistance, banking, shopping and other information services.

"The new ADSI smart phone promises to be the most advanced yet affordable device on the market. US Order has been a pioneer in delivering telephone technology to consumers with their ScanFone and PhonePlus products. In addition, they clearly are leading the industry in creating interactive content, such as innovative banking and shopping applications, for the smart telephone. US Order's relationship with Visa Interactive is a real plus -- for Colonial Data, our telco customers and their customers. Through Visa Interactive, we will be able to make bill payment and other banking services available on every ADSI `smart telephone' using the new Visa home banking standards. We're looking forward to working together in this new partnership."

The companies have agreed to enter into a two-way exclusive distribution relationship. Colonial Data will market telephones developed by US Order as its exclusive ADSI `smart telephone' product line, and US Order will distribute its ADSI smart telephones exclusively through Colonial Data to the telecommunications industry. The companies have also agreed to combine efforts in the areas of product development, manufacturing, customer service, leasing, repair, refurbishment and delivery of interactive content on smart telephones.

"We share Colonial Data's vision," said John C. Backus, president and chief operating officer of US Order. "Colonial Data was the first company to introduce Caller ID equipment with display screens into consumer homes and is the leading manufacturer of Caller ID units today. Their partnerships with the Regional Bell Operating Companies (RBOCs) and other Local Exchange carriers (LECs) have them perfectly positioned to deploy the next generation telephone -- the ADSI smart telephone -- into consumer homes on a mass market basis. Our alliance will deliver ADSI smart phones to Colonial Data's customers faster and at a lower cost than either of us could do alone."

"The strategic alliance with Colonial Data is a cornerstone of our sales and marketing strategy," underscored Backus. "In August 1994 Visa International purchased our electronic banking technology and named US Order a preferred provider of smart telephones, interactive content, and support services to its 13,000 U.S. member banks. Similar to the Visa relationship, the agreement with Colonial Data accomplishes our distribution objectives for smart telephones and interactive content in the telecommunications industry."

The relationship between the two companies is effective immediately, and it is anticipated that ADSI capable smart telephones will be available through Colonial Data to the RBOCs, LECs and other long-distance companies later this year.

"This partnership enables both organizations to offer Colonial Data's telco customers a 'full solutions' package, complete with hardware, content, support services and lease financing," said Scott A. Corzine, vice president, US Order. "Ultimately, this alliance is aimed at helping the RBOCs initiate and grow an installed base of ADSI-enabled customers who can use the new generation of advanced network services."

"Both Colonial Data and US Order are committed to bringing leading edge technology-based products to the marketplace which will provide value added, easy-to-use information services to the end user and additional network based revenue to the telecommunications industry," said Joseph W. Cline, vice president sales and marketing, Colonial Data. "We're extremely excited about this relationship and believe that it will provide significant value to those within the telecommunications industry and their customers."

US Order is the developer and marketer of the ScanFone and PhonePlus smart telephone systems. The company offers products and services for the interactive industry, including smart telephones, information services, Visa member bank implementation support services and integrated solutions for the banking, cable, telecommunications and new media industries.

Colonial Data Technologies Corp. designs, develops and markets Caller ID and other telecommunications products that support intelligent network services being developed and implemented by the RBOCs and other telephone operating companies. The company also repairs and refurbishes telecommunications products for commercial customers.

CONTACT: US Order

Elizabeth England, 212/979-9645

or

Colonial Data Technologies

Walter M. Fiederowicz, 203/355-3178