DataLink Systems Corporation Announces First Quarter Results; Reports Substantially Higher Revenues and Improved Margins.

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 17, 1998-- -0-

--   Revenues climb 293% over same period last year
--   Company recently rated number 1 choice by Smart Money Magazine
--   New sales and marketing partnerships expected to boost sales
     dramatically

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DataLink Systems Corporation, (OTC/BB:DASY), The Internet Portal to Wireless(TM) information provider, today announced record revenues for the first quarter ended June 30, 1998, nearly tripling the revenues of the same period of last year.

DataLink Systems Corporation develops and markets personalized information services using its patented Internet-to-wireless technology. Their technology, which DataLink describes as a platform for an unlimited number of products, utilizes the Internet as the user interface, news wire feeds for information, and wireless devices such as pagers or PCS phones, which is how the customers receive their personalized information.

The first quarter revenues reached $587,535, with a net loss of $1,286,004, or $0.63 per share, compared with revenues of $149,453 and a net loss of $875,807, or $0.45 per share last year. Revenues grew at a 293% rate during the first quarter compared to the same quarter last year, with gross margins increasing from 33% to 64% in the comparable period.

Mr. Anthony LaPine, the Chairman, President and CEO of DataLink Systems Corporation, commented: "We have been preparing carefully for this growth, and are pleased that our revenues have shown consistent and substantial increases quarter by quarter. We are also pleased to announce that our gross margins have improved markedly."

Mr. LaPine continued: "Not fully reflected in these figures are our recent efficiency improvements in the area of sales and marketing. We have recently shifted our focus from the direct distribution route, which was constrained by expenses of marketing, to a channel approach. By aligning ourselves with Value Added Resellers like DCN or more recently Skytel, we have enhanced our growth potential enormously. This last deal instantaneously brought us closer to a market of 1.3 million subscribers."

Mr. LaPine concluded: "The new distribution channels will help drive our sales to new levels and, at the same time, reduce on-going sales and marketing costs. Consequently, the company may achieve profitability even sooner than we originally anticipated."

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 Systems Corp., headquartered in the Silicon Valley, can be found on the Web at www.datalink.net. -0-

            CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

                                Three months ended June 30,
                                       1998          1997

Net Sales                          $  587,535     $  149,453

Net Loss                           $1,286,004     $  875,807

Weighted Average Number
  of Primary Common
  Shares Outstanding                2,027,657      1,927,523

Net Loss Per Primary
 Common Share                      $     0.63     $     0.45

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This press release contains forward looking statements relating to the future revenues and operating information and their impact on future results. Actual results could differ materially for those projected in the forward looking statements as a result of risk factors such as market conditions, product life cycles, customer delays in purchasing products, technology shifts, potential difficulties in introducing new products, competition, price sensitivity and the uncertainty of continuing market acceptance of the Company's products by distributors, retailers and consumers.

CONTACT: DataLink Systems

Paul Roberts, 408/267-1724

[e-mail]

or

Alan Stone & Company

Alan Stone, 310/444-3940

[e-mail]