Cybersmith, Inc. Raises $6 Million in Private Placement.

NEW YORK--(BUSINESS WIRE)--May 19, 1998--

Company Set to Implement Agreements with Simon DeBartolo and Caliber Learning Network; 5 Additional Stores Planned by Year-end

Cybersmith, Inc. has raised $6 million in a private equity placement with a group of institutional and individual investors, it was announced today by James R. Kirk, the company's CEO and president.

Proceeds from the private placement will be used to implement the strategic agreements the company recently signed with Simon DeBartolo Group, which calls for integrating Cybersmith stores into next-generation malls, and with Caliber Learning Network, Inc., (NASDAQ:CLBR) which adds distance learning to the Cybersmith concept.

Under the joint venture with Simon, the largest publicly traded real estate company in North America, three to five in-mall Cybersmith stores will be opened in 1998. The agreement also calls for Cybersmith to open stores in up to 150 additional Simon DeBartolo Group malls over the next two years.

During 1998 Cybersmith will retrofit its Palo Alto store to include a distance-learning classroom as part of its agreement with Caliber Learning Network. Caliber, a joint initiative between Sylvan Learning Systems and MCI Communications, operates a network of high-tech classrooms linked by live satellite downlink, videoconferencing, Intranet and Internet technology. This network distributes education, training and development programs from world-class universities and corporations to adult professionals across the United States. Cybersmith plans to build Caliber Learning Centers into all current and future stores.

Additional free-standing stores are also planned during 1998, including one in Boston's Back Bay neighborhood.

"The substantial customer traffic in and operating profitability of our current stores demonstrate our success in bringing people together to experience the latest technology," Mr. Kirk said. "The capital we have raised through the private placement allows us to roll out our proven Cybersmith format and experience to customers in other locations. It represents a strong vote of confidence in our strategy and business plan by a distinguished group of investors."

Among the new investors participating in the private placement are:

-- Simon Investors LLC, an investment firm associated with Simon

DeBartolo Group;

-- Graham Capital Company, a private investment company; and

-- Robert H. Lessin, a private venture capital investor who is the

former vice chairman of Salomon Smith Barney;

Several current investors increased their shareownership in the company through the private placement, including Applied Technology, a venture capital fund.

As a result of the financing, Erik Graham, Graham Capital Company and Stephen Simon, Simon Investors LLC, will join the company's board of directors, which also includes: Mr. Kirk; Thomas H. Grant (the board's chairman, who is managing general partner of Applied Technology); Howard P. Berkowitz, HPB Associates, L.P.; Mr. Lessin; Nicholas Negroponte of MIT's Media Lab; Olaf Olafsson, president and CEO of Advanta and former CEO of Sony Interactive Entertainment; and Marshall Smith, the company's founder.

Headquartered in New York City, Cybersmith, Inc. is a growing chain of interactive technology centers that encourages customers to experience the latest educational, informational and entertainment technologies in a comfortable retail environment. Cybersmith stores are currently located in: Cambridge's Harvard Square (outside Boston, MA); White Plains, NY (in the New York City suburb of Westchester County); and Palo Alto, CA.

CONTACT: Kennedy & Company

Steven Kennedy, 914-961-2436