Cover-All Technologies Inc. Reports Fourth Quarter Operating Results.

FAIR LAWN, N.J.--(BUSINESS WIRE)--March 31, 1999--Cover-All Technologies Inc. (Nasdaq SmallCap Market-COVR and PHLX-(CVA)) today announced revenues and earnings from operations for the quarter and year ended December 31, 1998.

Total revenue for the three months ended December 31, 1998, were $1,995,000 compared to 3,659,000 in the same period in 1997. For the twelve months ended December 31, 1998, revenues were $12,268,000 as compared to $7,938,000 in the same period of 1997. This represents a 55 percent increase in revenue over the same period in 1997.

Net income (loss) for the three months ended December 31,1998 was $(712,000) or $(0.04) per share compared to $196,000 or $0.01 per share in the same quarter of 1997. The net income (loss) for the twelve months ended December 31, 1998 and 1997 was $918,000 or $0.05 per share and $(2,640,000) or $(0.16) per share respectively.

Brian Magowan, chairman and chief executive officer of the company, stated: "I would like to thank our staff and customers for their dedication in 1998, which has resulted in improved operating results for the company compared to 1997. Cover-All has spent the fourth quarter focussing on the delivery to the initial TAS2000 customers. These deliveries will lay the proper foundation for future sales. As the TAS workers compensation products delivered to Accident Fund and Sierra Insurance Group gain acceptance within the insurance sector, Cover-All expects strong demand for these products from other insurance carriers seeking improved technology. Therefore, I remain confident that revenue and earnings will continue to grow in 1999."

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 property and casualty policy administration. The company's object-oriented software products utilize Oracle's client-server, relational database technology. More information may be obtained from the company's web site at www.cover-all.com.

Statements in this press release, other than statements of historical information are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks which may cause the company's actual results in future periods to differ materially from expected results. Those risks include, among others, risk associated with increased competition, customer decisions, delays in productivity programs and new product introductions, and other business factors beyond the company's control. Those and other risks are described in the company's filings with the Securities and Exchange Commission ("SEC") over the last 12 months, copies of which are available from the SEC or may be obtained upon request from the company. -0-

         Cover-All Technologiees Inc. and Subsidiaries
                     Operating Highlights

                                         Three months ended
                                             December 31,
                                        1998            1997

Revenues:
 Licenses                            $ 924,000     $ 2,459,000
 Maintenance                           961,000         833,000
 Professional Services                  70,000         367,000

 Total Revenues                      1,955,000       3,659,000

Costs and Expenses:
 Cost of Sales                       1,617,000       1,847,000
 Research and Development              404,000            -
 Sales and Marketing                   615,000         551,000
 General and Administrative            473,000         982,000
 Interest Expense (Income)             (72,000)         83,000

 Total Costs and Expenses            3,037,000       3,463,000

 Income (Loss) from Operations      (1,082,000)        196,000

 Income Tax (Expense) Benefit          370,000            -

 Net Income (Loss)                  $ (712,000)      $ 196,000

 Basic Earnings (Loss) Per Share    $    (0.04)      $    0.01

 Diluted Earnings (Loss) Per Share  $    (0.04)      $    0.01




                                        Twelve months ended
                                            December 31,
                                        1998             1997

Revenues:
 Licenses                           $ 5,875,000       $ 3,940,000
 Maintenance                          3,722,000         2,722,000
 Professional Services                2,671,000         1,276,000

 Total Revenues                      12,268,000         7,938,000

 Costs and Expenses:

 Cost of Sales                        6,462,000         5,426,000
 Research and Development             1,186,000             -
 Sales and Marketing                  2,024,000         1,900,000
 General and Administrative           1,905,000         2,989,000
 Interest Expense (Income)              143,000           263,000


 Total Costs and Expenses            11,720,000        10,578,000

 Income (Loss) from Operations          548,000        (2,640,000)

 Income Tax (Expense) Benefit           370,000               --

 Net Income (Loss)                    $ 918,000       $ (2,640,000)

 Basic Earnings (Loss) Per Share      $    0.05       $      (0.16)

 Diluted Earnings (Loss) Per Share    $    0.05       $      (0.16)