CutCo Industries Announces Appointment of New President, Private Offering of Shares; Company Opens Los Angeles Office, Sets Date for Vote On Name Change.

LOS ANGELES--(BUSINESS WIRE)--Nov. 2, 1999--

CutCo Industries Inc. (OTCBB:CUTC) Tuesday announced that Richard Arons, a prominent attorney and business executive, has accepted the position of president. His appointment is effective today.

The company also announced that Arons and another investor, Moishe Mana, have acquired 100,000 restricted shares of the company's stock at $5.50 per share.

Arons will join the company's board of directors. He will be located in the company's new Los Angeles offices, which will be the focal point of its expansion into Internet, e-commerce and high technology operations. The company's Syosset, New York, offices will continue as the center of the company's hair salon franchising business.

As previously announced, CutCo Industries is in the process of changing its name to Yellowave Corp., and has launched its Web site, www.yellowave.com. A meeting of shareholders to approve the name change is scheduled for Nov. 18.

Management has already received proxies approving the name change from holders of a majority of shares outstanding. The name change is expected to be effective Nov. 19. The company is applying for listing on the Nasdaq stock market with the proposed trading symbol of YWAV. The company expects that it will qualify for a Nasdaq listing.

The company's Los Angeles offices are located at 11777 San Vicente Blvd., Suite 505, Los Angeles, Calif. 90049. The telephone number is 310/979-8055 and fax [phone].

Arons, 52, has enjoyed a distinguished career as a practicing attorney and as an advisor and investor in a number of successful companies. Among entertainment industry professionals he is best known for managing and representing Michael Jackson and the Jackson Five during their meteoric rise over the first decade of their career.

As a result of Arons' appointment, Ron Oren is vacating the temporary post of interim president, and will continue as chairman of the board. Laura Ballegeer, formerly chief operating officer, will become chief executive officer.

"We are extremely fortunate to have attracted an executive of the stature and experience of Richard Arons," said Oren. "His talents and strategic vision will be key to the company's continuing progress toward our goal of repositioning this company to be a leader in the Internet and technology sectors," Oren said.

Arons' purchase of 50,000 shares of the company's stock in the recent private placement brings his total holding to 57,000 shares. In addition, New York businessman Mana purchased 50,000 shares, bringing his holdings to 154,500 shares.

Mana, owner of Moishe Moving and Worldwide Document Storage, both located in New York City, will not join the board. The additional shares held by Arons and Mana were purchased in the open market at prices higher than that paid for their restricted shares.

CutCo recently reported earnings of $775,067, or 96 cents per share, for the year ended June 30, 1999, compared to a loss of $407,257 or 52 cents per share the prior year. Revenues for the most recent fiscal year were $4,468,853, compared to $6,896,700 for the previous year, with the decline in revenues reflecting the effect of the sale of a number of the company's hair salons.

Note to Editors: A copy of this news release is available on the Web at www.aapr.com/cutco.htm.

This news release contains forward-looking statements that could involve a number of uncertainties and risks that could cause actual results to differ materially from those discussed in the forward-looking statements.