Compositech Ltd. Enters Letter of Intent to Acquire the Aeon Group, Inc., a B2B E-Commerce Software Company; Technology Licensing Program to Continue as a Separate Subsidiary.

Business Editors/Technology Writers

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--June 6, 2000

Compositech Ltd. (Nasdaq:CTEK), a developer of high tech laminates for the printed circuit board industry, has signed a letter of intent to acquire The Aeon Group , Inc., a Business-to-Business (B2B) e-Commerce software company that designs infrastructure connectivity solutions enabling rapid network communication across business processes. Under the terms of the transaction, all of the shares of The Aeon Group will be converted into shares of common stock of Compositech equal in number to 24.9% of the issued and outstanding shares of Compositech immediately after the acquisition and merger (the "Merger"). The former shareholders of The Aeon Group will also receive additional shares of Compositech equivalent to 5% of the issued and outstanding shares of Compositech immediately after the Merger for each $.50 increase in the market price of common stock from and after the merger, up to $4.00 per share and 15% for each $.50 increase thereafter, up to an overall cap of 90% of such shares which would be achieved at a price of approximately $5.00 per share. They will also receive two-year warrants to purchase shares of common stock equal to 27% of the shares issued and outstanding immediately after the Merger (and the exercise of warrants) at a price related to the current market price. A financing package, including a bridge loan, will be part of the Merger transaction. The current laminate business of Compositech will be put into a new wholly owned subsidiary. The Merger is subject to execution of definitive agreements and various actions, including approvals by the boards of directors and shareholders of each company.

The Aeon Group is a privately-held software company which operates through its wholly owned subsidiary, Area 7 Technologies, Inc., The Aeon Group plans to be actively engaged in B2B e-Commerce through a collaborative network of companies that leverages the collective knowledge and resources of the group. As part of this program, immediately prior to the Merger, Area 7 Technologies will acquire a technology license from Eltegra, Inc., a software company with operations in legacy integration and connectivity management via the use of XML objects. With this technology acquisition, Area 7 Technologies will embark on its mission to provide a systems integration platform to stand-alone companies, net-marketmakers, and trading communities, so that all participants can benefit from expanded market exposure and true process automation across their own systems and the greater network at large. Once integrated, users can enjoy a wide array of services offered by the Area 7 Hub architecture.

Upon completion of the Merger, the continuing company will be named The Aeon Group, Inc., and an application will be submitted for a change of Nasdaq symbol. Jonas Medney, co-founder of Compositech, will continue as Chairman and Samuel S. Gross will continue as CFO. The Aeon Group, Inc. will name a new President and CEO, COO and CTO. Ralph Segalowitz, Vice President of Technology, will continue to head up the CL200+ laminate technology-licensing program with technical assistance from Mr. Medney.

"We are excited to be part of an internet B2B technology program working with experienced professionals in technology and financing," said Compositech Chairman Jonas Medney. "Enhanced financing ability will provide the tools we need to negotiate the best possible license or joint venture deal for our technology. The diversification into B2B internet operations should contribute significantly to our shareholder value."

ABOUT THE AEON GROUP, INC.

The Aeon Group, Inc. is a business-to-business (B2B) e-Commerce software company that designs infrastructure connectivity enabling rapid network communication across business processes. The Aeon Group plans on offering connectivity solutions that serve to bridge together the disparate network composed of legacy systems, net markets, and Application Service Providers (ASP), thereby achieving a model composed of local and global integration, network consolidation, and an integrated services platform.

ABOUT COMPOSITECH LTD.

Compositech Ltd. has developed innovative and superior copper-clad and fiberglass epoxy laminates used to make printed circuit boards, which are essential components of personal computers, workstations, data communications, Internet servers and telecommunications equipment. Compositech is currently engaged in locating suitable licensees, joint venture partners or purchasers for its patented technology and equipment design.

Compositech(TM) and CL200+(TM) are trademarks of Compositech Ltd.

The statements made in this press release contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations. In addition to the matters described in this press release, risk factors listed from time to time in the Company's SEC reports and filings, including, but not limited to, its report on Form 10-QSB for the quarter ended March 31, 2000 and its report on Form 10-KSB for the year ended December 31, 1999, may affect the results achieved by the Company.