Datalink.net Announces Annual Financial Results; Report Shows Increased Revenues and Improved Operating Margins.

SAN JOSE, Calif.--(BUSINESS WIRE)--June 22, 1999--

Datalink.net (OTC BB:NETD), formerly DataLink Systems Corp., a Silicon Valley Internet company, today announced increased revenues for the fiscal year ended March 31, 1999, with revenues more than double those of the prior year.

Revenues for fiscal 1999 reached $2,128,438, more than double those for the prior year of $962,461, and resulted in a net loss of $4,430,164, or $2.12 per share compared to a net loss for fiscal 1998 of $14,738,804, or $7.53 per share. The 1998 net loss included certain non-cash charges totaling $10,707,000 resulting principally from the November 1997 private placement of preferred stock and warrants.

Datalink.net CEO Anthony LaPine said, "Revenue increases, primarily from increased sales of our financial products, have resulted in a gross operating margin improvement of over 200%. Margin increases were primarily offset by higher sales and marketing costs mainly due to an extensive advertising campaign. Datalink.net is now able to reduce its reliance on expensive advertising and can refocus its sales efforts of consumer products toward channel partners such as SkyTel, Bell South, Office Depot, and PageNet."

SkyTel has more than 450,000 customers, BellSouth Wireless Data serves 492 Metropolitan Statistical Areas, Office Depot operates a total of 749 stores and PageNet, with 10-million customers, is capable of reaching 90 percent of the U.S. population. "These partnership agreements are designed to increase our customer base and revenues," LaPine said.

"Additionally, Datalink.net recently announced formation of the Enterprise Business Group (EBG), with its strategy of providing enterprise solutions utilizing our systems and expertise to wirelessly enable Internet, e-commerce, auction and portal sites, along with corporate Intranets. These exciting new business services are anticipated to start making a meaningful contribution to Datalink.net's revenues and operating results in the upcoming year. When combined with the continuing initiatives of the Consumer Products Group, the Enterprise Business Group should provide a compelling family of `Web to Wireless' services," LaPine said.

Datalink.net -- Where the Web Meets Wireless(TM)

Datalink.net is the world leader in Web to wireless convergence with a suite of products and services for both the enterprise customer and the consumer. The Enterprise Business Group wirelessly enables Internet sites and e-commerce applications through the company's patented Xpresslink(TM) Platform, while the Consumer Products Group provides custom and tailored information to the wireless user. Datalink.net develops products with mass market appeal and e-commerce applications. Datalink.net is rated the number one service of its kind by SmartMoney Magazine. The company is headquartered in Silicon Valley, California and its services are marketed through Datalink.net's e-commerce Web site at http://www.datalink.net .

Statements in this release that are not strictly historical are "forward-looking statements" and subject to risk and uncertainty. Factors that affect 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. -0-

           Condensed Consolidated Statements of Operations

                                    Year ended March 31,
                                    1999           1998

Revenue                        $ 2,128,438    $   962,461
Cost of revenue                    822,636        530,545
Research and development           798,549        755,080
Sales and marketing              2,937,140      2,133,635
General and administrative       2,816,655      2,406,434
Other income                       816,378        831,429
  Net loss                      (4,430,164)    (4,031,804)

Deemed dividends on
 preferred stock                                8,083,000(a)

Beneficial conversion
 feature of warrants issued
 in association with
 preferred stock                                2,624,000(a)

Net loss available
 to common shareholders       $ (4,430,164)  $(14,738,804)

Net loss per common share,
 basic and diluted            $      (2.12)   $     (7.53)

Shares used in per share
 calculation, basic and
 diluted                         2,093,687      1,958,622

(a)  These 1998 charges reflected the beneficial conversion features,
     which were deemed to be dividends on preferred stock of
     $8,083,000 and on warrants of $2,624,000. These amounts
     represented the difference between the proceeds allocated to the
     preferred stock or warrants respectively, and the fair value of
     the preferred stock or warrants (assuming immediate conversions)
     upon issuance.