Cordia Corp. Announces Second Quarter Results Including More Than $1 Million in Quarterly Revenue and 54% Revenue Growth.

Business Editors

NORWALK, Conn.--(BUSINESS WIRE)--Aug. 17, 2001

Cordia Corp. (OTCBB: CORC), a provider of tech-enabled outsourced services to the insurance industry, today announced the results of its operations for the second quarter ended June 30, 2001.

Cordia reported revenues for the six-month period ended June 30, 2001, of $1,471,693, an increase of $799,477, or approximately 119%, over the revenues from the six-month ended June 30, 2000. Quarterly revenues for the three-months ended May 31, 2001 were $1,031,802, an increase of $362,926 or approximately 54% over quarterly revenues for the prior year.

The company's net loss for the six and three-month periods ended June 30, 2001 amounted to ($1,123,628), or ($0.04) per share, and ($656,781), or ($0.02) per share, respectively, compared to losses of ($542,609), or ($0.03) per share, and ($416,949), or ($.02) per share, respectively, for the comparable prior year periods.

The company also reported that cash used in operations for the six-months ended June 30, 2001 amounted to ($199,344) and improvement of $129,527, or approximately 39%, as compared to the six-months ended June 30, 2000.

Cordia CEO Craig Gironda stated, "We are very pleased to report this significant increase in our operating revenues and improvement in our operating cash flows. During the second quarter we launched our Subro AGS proprietary software system that we believe will deliver us improved operating efficiencies and help us to produce organic growth in our subrogation business. In addition to focusing on enhancing and growing our current businesses, we continue to evaluate potential acquisition that will fit into our tech-enabled outsourced services strategy."

Cordia Corporation develops and provides industry specific applications, solutions and services. Cordia's primary operations are currently concentrated in the insurance industry through its operating division, Insurance Solutions Group (ISG). ISG provides subrogation, claims administration and premium sales and distribution solutions and services to leading insurance industry participants. Cordia plans to expand its efforts into additional industry segments.

                     Cordia Corp. and Subsidiaries
            Condensed Consolidated Statements of Operations
                             (Un-audited)


                      For the Six Months         For the Three Months
                            Ended                       Ended
                           June 30,                    June 30,
                       2001        2000           2001         2000

 Revenues          $1,471,693   $ 672,227    $ 1,031,802    $ 668,876

 Operating Expenses
   Payroll and
    payroll taxes   1,299,370     537,526        800,243      405,951
   Advertising
    and promotion     144,900     114,987         85,045       82,165
   Professional and
    consulting fees   338,881      49,877        221,259       36,377
   Depreciation        27,802      14,528         15,282       12,859
   Other selling,
    general and
    administrative    772,649     335,951        477,495      295,739
                   ----------  ----------    -----------   ----------

 Operating Loss    (1,111,909)   (380,643)      (567,523)    (164,216)

 Other Income (Expenses)
   Gain (loss) on
    investments       (66,110)   (454,160)        (4,250)    (524,927)
   Other Income            85       6,100             85        6,100
   Interest income      1,333           -          6,162            -
   Interest expense   (27,101)     (5,855)       (21,769)      (5,855)
                   ----------  ----------    -----------   ----------

 Loss Before Income
  Taxes            (1,203,701)   (834,558)      (587,295)    (688,898)


 Income Tax Expense (Credit)
   Current             (6,404)     76,573              -       76,573
   Deferred           (73,669)   (368,522)        69,486     (348,522)


 Net Loss         $(1,123,628)  $(542,609)     $(656,781)   $(416,949)
                  ===========  ==========    ===========   ==========

 Loss per Share      $  (0.04)   $  (0.03)      $  (0.02)    $  (0.02)
                  ===========  ==========    ===========   ==========

 Weighted Average
  Shares
  Outstanding      26,913,309  20,212,683     27,173,066   20,212,683
                  ===========  ==========    ===========   ==========

This release contains forward-looking statements that involve risks and uncertainties. Cordia's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, availability of management; availability, terms, and deployment of capital; Cordia's ability to successfully market its services to current and new customers, all in a timely manner, at reasonable cost and on satisfactory terms and conditions, as well as regulatory, legislative and judicial developments that could cause actual results to vary in such forward-looking statements.