Cover-All Technologies Announces Revenues and Results from Operations for the Quarter Ended June 30, 1997.

FAIR LAWN, NJ--(BUSINESS WIRE)--Aug. 15, 1997--Cover-All Technologies Inc. (Nasdaq SmallCap Market - COVR and PHLX - CVA) today announced revenues and results from operations for the quarter ended June 30, 1997.

Total revenues for the three months ended June 30, 1997 were $1,338,200 compared to $882,714 in the first three months of 1997. Net loss for the three months ended June 30, 1997 was ($1,010,529) ($0.06 per share) compared to ($1,585,914) ($0.09 per share) in the first three months of 1997.

Total revenues for the three months ended June 30, 1997 were $1,338,200 compared to $1,896,961 for the same period in 1996. For the six months ended June 30, 1997, revenues were $2,220,914 as compared to $3,017,064 in the same period of 1996.

Net loss for three months ended June 30, 1997 was ($1,010,529) ($0.06 per share), compared to ($1,280,466) ($0.08 per share), in the same quarter of 1996. The net loss for the six months ended June 30, 1997 and 1996 was ($2,596,443) ($0.16 per share) and ($2,078,472) ($0.16 per share), respectively.

On March 14, 1997, the company obtained $750,000 in bridge financing through the sale of 12 1/2% convertible notes to three major shareholders.

On March 31, 1997, the company issued $3,000,000 of 12 1/2% convertible dentures (the "debentures") to an institutional investor at face value. The debentures are immediately convertible, in whole or in part, into shares of the company's common stock at a conversion price of $1.25 per share, subject to adjustment, and mature on March 31, 2002. Interest is payable quarterly. The debentures contain certain covenants which restrict the company's ability to incur debt, grant liens, pay dividends or other restricted payments and make investments and acquisitions. The company cannot redeem the debentures for two years and thereafter may call the debentures only if the closing price of the company's common stock exceeds $1.50 for the 20 days preceding the redemption date. A portion of the proceeds from the issuance was used to repay the bridge financing and the remaining net proceeds are being used for working capital purposes.

Brian Magowan, chairman and chief executive officer of the company, stated that, "Increasingly the Year 2000 issue is causing companies to re-evaluate their computer applications software options. In the second quarter, Cover-All's new management team geared up marketing and sales efforts to take advantage of this opportunity. I am pleased to report a 52% increase in second quarter sales as compared to the first quarter of this year. Prospects are good for increased revenues in the second half of the year and for 1998."

This press release contains forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act) which are subject to the occurrence of certain contingencies which may not occur in the time frames anticipated or otherwise, and, as a result, could cause actual results to differ materially from such statements. The company's outlook for fiscal 1997, including expected changes in revenues, earnings, margins, and sales mix, is based on recent buying trends, continued improvements in operations and the anticipation of new products being introduced on schedule. All of these factors might be affected by increased competition, customer decisions, delays in productivity programs and new product introductions, and other business factors beyond the company's control.

Cover-All Technologies Inc. is a provider of computer software for the insurance industry, specializing in rapid applications development tools and the delivery of mission critical software solutions for the property and casualty policy administration. The company's object-oriented software products utilize Oracle's client-server, relational database technology. -0-

The following is a summary of operating highlights for the three and
six months ended June 30, 1997 and 1996.

                        Cover-All Technologies Inc.
                              And Subsidiaries

                            Operating Highlights

                     Three Months Ended         Six Months Ended
                           June 30,                 June 30,
                     1997          1996        1997         1996

Revenues:
  Licenses       $ 412,532     $ 502,241    $ 486,508     $ 707,242
  Maintenance      628,318       528,333    1,215,178     1,035,437
  Professional
    services       297,350       866,387      519,228     1,274,385
                 1,338,200     1,896,961    2,220,914     3,017,064

Costs and expenses:
  Cost of sales  1,242,675       929,370    2,549,065     1,390,626
  Research and
    development         --       913,658           --     1,703,033
  Sales and
    marketing      456,541       203,577      808,470       321,736
  General and
    administrative 649,513     1,130,822    1,459,822     1,680,141
                 2,348,729     3,177,427    4,817,357     5,095,536

Net loss       $(1,010,529)  $(1,280,466) $(2,596,443)  $(2,078,472)

Net loss per
  share            $(0.060)      $(0.078)     $(0.155)      $(0.160)

Weighted average
  number of
  common shares
  outstanding   16,720,297    16,314,436   16,719,146    13,014,557

CONTACT: Cover-All Technologies Inc.

Brian Magowan, 201/794-4800