Cumetrix Increases Stake in Online Transaction Technologies; Holds Options for Additional Equity.

INDUSTRY, Calif.--(BUSINESS WIRE)--Feb. 3, 1999--Cumetrix Data Systems Corp. (Nasdaq:CDSC), a national distributor of computer components and related peripherals and provider of automated system configuration services, Wednesday announced that it has exercised options to increase its equity interest in Online Transaction Technologies Inc. (OTT), a Los Angeles-based e-commerce technology and software services company.

Cumetrix Data Systems now holds 27.84 percent of OTT's outstanding stock on a fully diluted basis for total to-date investment of $1 million in cash. Cumetrix retains an option to purchase additional shares for up to 50 percent of OTT's outstanding stock on a fully diluted basis.

"Following our initial investment in OTT, we have begun preliminary discussions with potential clients and strategic alliance partners to identify market opportunities which can best capitalize on OTT's proprietary e-commerce technology," stated Max Toghraie, chief executive officer of Cumetrix Data Systems.

"We are very encouraged about the initial feedback with respect to the product and today's investment reiterates our steadfast commitment to continued support and development of our Internet subsidiary's growth strategy. Furthermore, we are pleased with our efforts in working with OTT to expedite the completion and launch of our computer store and auction Web sites scheduled for launch in the current quarter," added Toghraie.

Cumetrix Data Systems is a national provider of computer-related products, peripherals and configuration services. Using licensed proprietary software, the company has developed an Automated Custom Systems Assembly (ACSA) process to offer low-cost, high-speed and reliable configuration solutions to its target markets in domestic and international markets. The company has headquarters in City of Industry.

Online Transaction Technologies is a privately held e-commerce technology and software services company with a focus on development of customized turnkey solutions that enable merchants to manage their electronic-commerce businesses by outsourcing the technology so that they can focus on their core business objectives.

With the exception of historical information, certain statements in this news release are forward-looking statements that involve risks and uncertainties. Actual events or results may differ materially from the company's expectations due to various factors. These factors include dependence upon OTT for implementation of its strategy, possible delays in implementation of its Internet strategy, completion of the Internet stores and auction site, uncertainty and market acceptance of the e-commerce sites and successful conclusion of negotiations with strategic alliance partners. The risks highlighted herein should not be assumed to be the only things that could affect the future performance of the company. Additional explanation of these factors and other factors affecting the company's performance are set forth from time to time in the company's filings with the U.S. Securities and Exchange Commission.