DataLink Systems Announces Second Quarter Operating Results.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 19, 1998--DataLink Systems Corp., (OTC BB:DASY), a provider of wireless information solutions, today announced operating results for the second quarter ended Sept. 30, 1998.

Revenues increased to $509,121 for the three months ended Sept. 30, 1998 from $222,812.00 in the same period of 1997, and resulted in a net loss of $1,489,032 ($0.73 per share), as compared to a net loss of $1,082,487.00 ($0.56 per share) for the three months ended Sept. 30, 1997.

Revenues and net loss amounted to $1,096,656 and $2,775,036 ($1.37 per share) for the six months ended Sept. 30, 1998, compared to revenues of $372,265 and a net loss of $1,958,295 ($1.02 per share) for the 1997 comparable period.

Anthony LaPine, CEO of DataLink Systems Corporation, said, "While we were pleased with the revenue growth in the current period, the growth patterns of our financial products suffered from the weakened financial market. Additionally, during this period, the Company was investing heavily in our brand name recognition through extensive advertising strategy and in new product development."

"In fact, during the quarter, the Company completed development of several new products, including its first sports product, Sports2Go, a general news, weather and lifestyle information product, InfoXtra, and CompanyNews, an information service that tracks specific company news."

LaPine also said, "The Company has shifted its focus from direct distribution, which is heavily dependent on expensive media and print advertising, to channel marketing. Our channel distribution includes financial services companies, wireless service providers and Internet companies. DataLink's expanded product offerings and use of value-added resellers such as SkyTel and DTN has substantially broadened our potential market."

About DataLink

DataLink Systems Corporation, Where the Web Meets Wireless(TM), uses patented Intelligent Agent Technology to link personalized content to wireless communications devices, such as pagers, PCS phones and PDAs. DataLink set new standards for delivery of real-time information to mobile people by incorporating the best features of financial, news and lifestyle Web sites and premium real-time news feeds on a wireless platform.

DataLink was recently rated the number one choice for wireless information services by SmartMoney magazine. DataLink, based in Silicon Valley, is found on the Web at http://www.datalink.net. -0-

            CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

                       Three months ended          Six months ended

                         September 30,               September 30,

                       1998         1997          1998          1997


Revenues           $  509,121   $  222,812   $1,096,656    $  372,265
Net Loss           $1,489,032   $1,082,487   $2,775,036    $1,958,295
Shares used in
 per share
 calculation,
 basic and
 diluted            2,032,116    1,923,836    2,027,937     1,925,670
Net loss per
 share, basic
 and diluted            $0.73        $0.56        $1.37         $1.02

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Statements in this release that are not strictly historical are "forward-looking statements" and subject to risk and uncertainty. Factors that effect actual events or results materially include, but are not limited to: (i) the Company's ability to obtain adequate financing to further its current and future business strategies; (ii) the Company's ability to attract and retain its employees; (iii) the Company's success against competitive products and services and (iv) the effects of business and economic conditions generally