Data Dimensions Establishes Millennium Update Conversion Center in Galway, Ireland; New subsidiary will allow rapid ramp-up of high quality millennium conversion services.

BELLEVUE, Wash.--(BUSINESS WIRE)--July 11, 1996--Data Dimensions Inc. (NASDAQ:DDIM), a leading provider of Year 2000 (millennium) planning and update services, announced today it has established a wholly owned subsidiary, Data Dimensions, Ireland Ltd., to serve as an offshore software development facility.

The subsidiary, based in Galway, Ireland, will initially provide software conversion and services to address the millennium update. Data Dimensions will receive job creation assistance from Ireland's Industrial Development Agency (IDA) to help fund 141 jobs at the center over the next three years. The company already has implemented code conversion and testing at the center for several U.S-based clients.

"This new center provides Data Dimensions with several competitive advantages," said Larry Martin, chairman and CEO of Data Dimensions. "First, we will be able to staff up quickly, because Ireland has a high-quality labor pool that is trained in COBOL, which is the most widely used computer language among our clients' systems. Second, the labor costs in Ireland are lower, which allows us to pass savings on to our clients.

"Third, because of the relatively small time zone difference from the U.S. and our common use of English, we believe that Ireland has distinct advantages over other offshore alternatives. Finally, Ireland's recent $3.5 billion upgrade of its telecommunications infrastructure will enable us to use full data and voice services, including ISDN and satellite links, to provide update services to our international client base."

"The support of the IDA has been tremendous," said Data Dimensions' CFO William H. Parsons, who negotiated the grant on behalf of the company. "Their grant will help to reduce our initial costs related to staffing, and makes the opportunity in Ireland all the more attractive."

"We are pleased Data Dimensions has shown its confidence in the services and skilled workforce that Galway offers," said Paul Hanratty of the IDA. "Data Dimensions will play a vital role in this area's future."

John Costello has been named managing director of Data Dimensions Ireland, and will manage all work at the new center. Costello has 25 years of experience in data processing management and programming, including more than 20 years with Neodata Services Ltd. of Ireland.

The millennium problem arises from the widespread use of computer programs that rely on two-digit date codes to perform certain computations and decision-making functions. Many of these computer programs may fail due to an inability to properly interpret date codes. For example, such programs may misinterpret "00" as the year 1900, rather than 2000. These "date-dependent" programs are found in computer hardware, software and embedded systems used in many businesses. The cost to fix the Year 2000 problem worldwide could reach $600 billion, according to estimates by research firm Gartner Group.

Headquartered in Bellevue, Data Dimensions Inc. provides high-quality, knowledge-based and tools-assisted consulting services, including millennium update services based on the company's proprietary methodology, Template 2000(sm). The company began providing millennium consulting services in 1991 and has specialized exclusively in the service since 1993. The company's clients include multinational leaders in insurance, health care, manufacturing, financial services, public utilities and government.

CONTACT: Data Dimensions

Bill Parsons, 206/688-1000

or

Kaufer Miller Communications

John Swenson, 206/450-9965

e-mail: JohnSw(at)kmcomm.com