Data Evolution Corporation Announces Windows CE Mobile Computer for Education and Government Services Markets; Full-Size Cathena Notebook Fills Mobility Void.

Business Editors/High-Tech Writers

NEW ORLEANS--(BUSINESS WIRE)--May 5, 2004

Data Evolution Holdings, Inc. (OTC.PK: DTEV) announced today that it's wholly-owned subsidiary, Data Evolution Corporation, introduced the CATHENA(TM), a new mobile computer aimed at the education and government services marketplaces.

The Cathena, which runs the latest Microsoft(R) Windows(R) CE.NET(TM) operating system, has the look and feel of a traditional ultralight notebook computer while offering all the features and benefits of a high-performance Windows CE product, such as instant-on, extended battery life, and low support costs.

"We are thrilled to be able to offer a cutting-edge mobile computing device targeted to the education and government services markets - markets that have a direct impact on our daily lives," said Robert J. Sowah, Chief Executive Officer of the Company. "The Cathena will provide greater durability than traditional notebook PC's and substantially increased functionality over PDA-style units utilized in many education curricula and government data processing organizations. Users in these niche markets will no longer have to make the difficult choice between expensive, heavy notebooks and the lack of usability of a PDA."

The Cathena was developed as a result of in-depth discussions and interviews with numerous elementary and high school educators, school district technical staff, systems integrators, and federal and state government service personnel. The most common complaint relayed to the Company was the lack of suitable computer hardware products between handheld PDA's and notebook PC's.

The high purchase price of notebook PC's compounded with the frequency and cost of notebook computer repairs, which effectively increases a notebook's true cost, can be prohibitively expensive in school and government service environments. On the other hand, the small screen size and lack of a dependable, full-sized keyboard of PDA's is not conducive to learning or productivity. The Cathena has been specifically developed to address these problems by offering most of the functionality of a notebook PC, including a large screen that enables full-format viewing of web pages and software applications, while substantially reducing repair costs by eliminating many common notebook repair items, such as the hard drive. In addition, because the Cathena runs the Windows CE operating system, the threat of viruses, which can immobilize large user organizations, is substantially reduced.

"Schools want to prepare their students with the computer skills they will need to advance into higher education institutions and finally onto the workplace," Sowah further commented. "Because the Windows operating system is predominate in today's workforce, it makes sense for us to offer a device with an operating system that prepares students for a Windows environment while simultaneously removing many of the maintenance obstacles inherent with student laptops, which allows our target organizations to allocate their limited financial resources to IT purchases rather than IT maintenance."

The Cathena is a Windows CE.NET notebook computer with a 12.1", 800x600 resolution, full-color TFT display, a 400 MHz Intel(R) XScale processor, an integrated nearly full-sized keyboard, 128MB RAM, a touchpad mouse, numerous in/out ports (two USB, audio in and out, compact flash slot, PCMCIA slot, and VGA out), built-in 802.11b wireless, and a lithium ion battery. The unit measures approximately 10.7"x 9.1"x 0.95" and weighs approximately three pounds.

The Company expects that the Cathena will be commercially available in the third quarter of 2004.

For additional information about the Cathena and the Company's award-winning Clio convertible tablet computer, please see the Company's web site located at www.dataevolution.com.

This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

About Data Evolution Holdings, Inc.

Data Evolution Holdings, Inc., through its wholly-owned subsidiary, Data Evolution Corporation, develops proprietary computer software and manufactures computer hardware for mobile data capture solutions. The Company's software products and services, grouped under the trade name mCapture:PowerSys(TM), are specifically designed to help organizations capture and manipulate data efficiently and accurately. Our hardware products consist of the award-winning, convertible handheld personal computer, Clio(R), and the traditional notebook Windows CE computer, Cathena(TM), which is specifically targeted to the education and government services markets.

For more information, please contact:

Robert J. Sowah
Chief Executive Officer
650 Poydras Street
Suite 1467
New Orleans, Louisiana 70130
Tel.:         [phone]
Email:        [e-mail]
Web site:     www.dataevolution.com