Data Dimensions Introduces ARDES 2K, a New Millennium Product Offering; Data Dimensions Announces ARDES 2K Provider Program; Five years of accumulated millennium consulting knowledge will be available through a new turnkey product.

BELLEVUE, Wash.--(BUSINESS WIRE)--Aug. 7, 1996--Data Dimensions, Inc. (NASDAQ: DDIM), the world's leading provider of Year 2000 (millennium) planning and update services, announced today that it will introduce ARDES 2K, which is a new concept in delivering solutions for the Year 2000 effort. The product integrates the latest in Data Dimensions methodologies and process technology with computer based training techniques and is delivered via CD-ROM and Internet.

"This product is revolutionary for the Year 2000 marketplace," said Larry Martin, chairman and CEO of Data Dimensions. "ARDES 2K organizes five years of millennium experience into a media which can be used by any organization to solve the millennium issue. It is comprised of a series of repeatable, scaleable processes that can be used by any size organization, local or global in scope."

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 1900, rather than 2000. These "date-dependent" programs are found in computer hardware, software and embedded systems used in many businesses.

ARDES 2K is a complete package of planning guidelines, assessment instruments, automated reporting mechanisms, project management methods, and other tools that Data Dimensions has developed during its five years of millennium update work performed for more than 100 clients worldwide. CD-ROM will be used as the delivery mechanism for ARDES 2K and updates will be provided via the Internet.

ARDES 2K works across all computer languages and platforms, is tools-independent, and has been tested in many different industries. A unique feature of the product is its strength in allowing organizations to solve millennium issues that are not strictly IT related. Data Dimensions has successfully segmented the millennium update process into three distinct phases: planning, preparation and implementation. ARDES 2K provides guidelines for each of these phases, delivered through CD-ROM, telephone and Internet dial-up support, and printed documentation.

In addition, Data Dimensions announced a new licensing program that will make its ARDES 2K millennium business process solution available to third-party providers which include computer and software companies, systems integrators and consultants. The ARDES 2K Provider Program will provide licensees with the strategic tools and knowledge required to offer comprehensive millennium update services.

"ARDES 2K turns our licensees into instant leaders in the Millennium consulting business," said Larry Martin, chairman and CEO of Data Dimensions. The ARDES 2K package, along with the support and training we offer through our Provider Program equips licensees to offer our industry recognized expertise to their clients.

"We believe that most organizations need to complete conversion and begin testing no later than September 30, 1998, in order to work through fourth quarter and year-end processing before migrating critical systems back into production. This means that barely two years remain to seriously address the issue. In addition, the Gartner Group and others have indicated that, particularly as timeframes shorten, the lack of trained people will be an increasing concern. Our ARDES 2K Provider Program is the first meaningful solution to this dilemma because it allows providers to rapidly deploy effective, knowledgeable resources into the marketplace. We believe that organizations which depend on computers for mission-critical applications will be able to manage the update more efficiently, with better adherence to standards and with less risk by embracing our business process methodology and taking advantage of our network of trained providers."

Data Dimensions has been licensing its consulting methodology, previously called Template 2000, internationally for several years. The company currently has established eight foreign licensees, each of which has been granted exclusive territories covering 22 countries in Europe, Africa and the Pacific Rim. In addition, in May, 1996, the company announced its first domestic licensee, Business Records Corporation Holding Company (BRC), a provider of specialized information systems and services to health care institutions and local governments. BRC has a non-exclusive license to market and use Data Dimensions ARDES 2K system to assist its clients in the millennium update.

Data Dimensions intends to continue to license its system internationally on the basis of exclusive territories, where strong local service providers have the best access to culturally distinct markets and existing client bases. The company will continue to pursue non-exclusive licenses with high-quality domestic service providers. Data Dimensions is currently negotiating with several other potential foreign and domestic licensees. The company will also continue to offer its consulting services to organizations worldwide through the use of ARDES 2K.

Headquartered in Bellevue, Wash., Data Dimensions, Inc. provides high quality, knowledge-based and tool-assisted millennium consulting services based on the company's proprietary business process methodology, ARDES 2K. The company began providing millennium consulting services in 1991 and has specialized exclusively in the service since 1993. The company's clients consist primarily of multi-national leaders in insurance, health care, financial services, public utilities and government.

CONTACT: Data Dimensions, Inc.

Villette Nolon, 206/688-1000

http://www.data-dimensions.com/

or

Kaufer Miller Communications

John Swenson/ Betsy Rodgers, 206/450-9965

[e-mail]

[e-mail]