Data Dimensions Signs Letter of Intent to Acquire Millennium U.K., Ltd.

BELLEVUE, Wash.--(BUSINESS WIRE)--Sept. 16, 1996--Data Dimensions Inc. (NASDAQ:DDIM), the world's leading provider of Year 2000 (millennium) planning and update services, announced today that it has signed a letter of intent to acquire Millennium U.K., Ltd., Great Britain's leading consulting services firm specializing in the Year 2000 update.

Data Dimensions will establish a wholly-owned international subsidiary, Data Dimensions U.K.,PLC, to service the U.K. market.

Anticipated terms of the transaction are an initial payment of cash and stock, with an earnout for stock over two years. Les Thomas, a principal of Millennium U.K., would continue as managing director of the new subsidiary. Final terms and closing of the transaction are contingent upon completion of a definitive agreement.

"This is an extremely important acquisition for Data Dimensions, because it will instantly establish our first direct consulting presence outside of the United States," said Larry Martin, chairman and CEO of Data Dimensions. "The U.K. market for millennium services is expanding very rapidly. With this acquisition, we are entering the U.K market with a consulting infrastructure, trained staff and strong client relationships with premier companies representing all key industry sectors in the U.K.

"This will serve us well as we roll-out consulting and licensing services in Europe, and strongly positions us for business opportunities beyond the Year 2000. In addition, because Millennium U.K has been a licensee of our technology, their staff already has extensive experience with our methodology."

Millennium U.K., Bournemouth, England, has been a Data Dimensions licensee since 1994. As an international affiliate, the firm has exclusive license to use and market Data Dimensions' proprietary millennium update methodology in the U.K.

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, causing computational errors and even complete system crashes in critical applications.

It is estimated that several hundred billion lines of computer code are impacted by this problem worldwide, and that businesses and governments will need to spend billions of dollars and considerable time and human resources to convert programs and data to include century.

Headquartered in Bellevue, Data Dimensions Inc. provides high-quality, knowledge-based and tools-assisted consulting and licensing services, including the most comprehensive service and product offering available for the Year 2000 update.

The company's proprietary business process technology, ARDES 2K, includes software tools, 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 120 clients worldwide.

The company began providing millennium consulting services in 1991 and has specialized exclusively in the area since 1993. The company's clients include multinational leaders in insurance, health care, telecommunications, manufacturing, financial services, public utilities and government, served domestically and through nine affiliate licensees in 23 foreign countries.

CONTACT: Kaufer Miller Communications

John Swenson, 206/450-9965

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Data Dimensions

Villette Nolon, 206/688-1000

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