Datalink.net Reports Increased Revenues in 2Q01; Revenue Growth Driven By Success in Targeted Vertical Markets.

Business Editors and High Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 14, 2000

Datalink.net (NASDAQ: XLNK) a leading wireless infrastructure provider, today reported increased revenues in the three- and the six-month periods ended September 30, 2000. Revenues of 2Q01 of $777,000 were more than double the 1Q01 revenues of $281,221 and reflect the Company's continuing progress in penetrating its targeted vertical markets. Revenues for the six months ended September 30, 2000 totaled $1,058,000, as compared to $820,000 for the prior year six-month period.

Reporting the net loss for the quarter and six month periods ending September 30, 2000 will be delayed due to the complexities in estimating the asset value of the 800,000 warrants awarded to The Chase Manhattan Bank in exchange for the Global Market Pro intellectual property. Although the effect on the Company's operating loss will be a non-cash charge, the magnitude of said charge will be dependant on the value and life set by an independent appraiser. The Company has engaged the services of an outside appraiser of intellectual properties, and when a value is established for Global Market Pro, the Company will report its operating loss.

Gross margins in the quarter increased to a record 49.6%, up from 33.5% last quarter and 41.1% in 2Q00. The increasing gross margins reflect the change in Datalink.net's strategic focus to develop and deploy next-generation, value-added solutions to support targeted vertical market segments.

Second quarter operating expenses of $2,567,000 compared to $2,208,000 last quarter. Most of the sequential increase in expenses is attributable to increased salary expense related to additional engineers and personnel associated with developing and implementing the enterprise B2B marketing and sales strategy. General increases are related to the completion and integration of Datalink.net's two successful acquisitions in the quarter, and costs associated with moving from the AMEX to the Nasdaq in August, 2000.

Anthony N. LaPine, President and CEO of Datalink.net commented, "We are pleased with our second quarter results. Our revenue increases and gross margins give us confidence in the long-term strategy that we outlined last year when we transitioned our business from consumer to B2B. In the second quarter, we began booking revenues from our first B2B customers, including Chase Manhattan Bank, our joint development partner."

"Based on previously announced customer wins, we expect the B2B revenue to continue to grow. Over the next few quarters, our mix may fluctuate as some

customers begin to generate transaction fees while newer customers enter the engineering phase of their project. We expect gross margins should increase in the long-term but may fluctuate short-term with the changing mix," Mr. LaPine added.

"Our revenues continue to increase and our future is better than ever as we deliver on our plan to grow the business through new product offerings, acquisitions and partnerships. Datalink.net will successfully integrate our assets and will continue to establish our Company as an industry leader in wireless information technology."

Mr. LaPine continued, "In the second quarter and after, we also completed three very important acquisitions in keeping with our strategic business plan. Each of these acquisitions has brought important new resources to Datalink.net including technology, industry experience, engineering, sales and marketing talent, and a loyal and significant customer base. While the acquisitions temporarily added to costs, we expect these costs will drop modestly as the acquisitions are integrated. Additionally, increasing revenues from new products and services will offset the higher costs long-term."

Second Quarter and Recent Highlights

During the second quarter and in the last few weeks, Datalink.net has made significant progress in pursuing its long-term strategy. This progress includes important new customer wins, new product accomplishments, major acquisitions and achievement of milestones in integrating those acquisitions. Highlights include:

-- Datalink.net will enable the electronic brokerage firm "thinkorswim" to
provide unprecedented wireless access for trading and financial account
management.

-- Alcatel is expanding its wireless system into an advanced two-way solution.
Alcatel has been a long-time customer of Cross Communications, a recent
Datalink.net acquisition, and with this agreement has expanded its relationship
with both Cross Communications and Datalink.net.

-- Fidelity selected Datalink.net and Cross Communications for its Wireless
Network Management Notification Solution.

-- Datalink.net will wirelessly enable Hughes Networks Maryland headquarters to
build and deliver real-time critical system alerts for Hughes' Satellite
systems division.

-- Datalink.net launched Global Market Pro in New York City.

-- Samsung Semiconductor Division selected Datalink.net to wireless enable the
desktop across the enterprise, an expansion of the relationship between Samsung
and Datalink.net.

-- Datalink.net acquired WaresOnTheWeb, a provider of software solutions for
the electronic retailing industry. WaresOnTheWeb customers include Carlton
Cards, FMC Corporation, Blades.com, Platex, Host Marriott, The Furniture Guys,
Paine Webber, and Norwest Financial.

-- Datalink.net Board of Directors approved a Stock Repurchase Plan with
authority to purchase up to 1 million shares of common stock.

-- Datalink.net unveiled a prototype targeting the healthcare industry. This
product comes out of the combination of Datalink.net wireless technology and
Simkin, Inc. healthcare industry expertise.

-- WebLink Wireless added Cross Communications, a wholly-owned subsidiary of
Datalink.net, to WebLink Wireless' Enterprise Solutions Partner program, a
group of industry leading organizations working together to solve problems and
expand opportunities for businesses through the 2-Way wireless data market.

-- Extending its reach into the emerging wireless healthcare market,
Datalink.net acquired Simkin, Inc., a producer of pharmaceutical and medical
software tools.

-- NetCurrents, Inc., the premier Internet Intelligence Agency, and
Datalink.net agreed to jointly develop a wireless solution enabling users of
NetCurrents' premium real-time Internet monitoring and analysis services to
remotely receive real-time "alert" messages and updates.

-- Crystal Springs Water selected Cross Communications HipLink Messaging System
to wirelessly connect its delivery force.

-- On Time Media, an online freight and load matching service for the
transportation industry, licensed Datalink.net's wireless gateway technology to
wirelessly enable its two online freight-matching services, TruckIt.com and
ExpediteLoads.com.

-- Datalink.net granted 800,000 common stock warrants priced at $30 each to an
affiliate of The Chase Manhattan Bank in exchange for all royalty and
intellectual property rights to Global Market Pro.

-- Chase Manhattan Bank announced that it will roll out Global Market Pro,
jointly developed with Datalink.net, to its Global Market trading
professionals.

-- Datalink.net acquired Cross Communications, a premise-based wireless data
communications solutions provider that specializes in enterprise messaging. In
addition to a blue-chip customer base, Cross Communications adds to
Datalink.net's ability to efficiently create value-added custom solutions for
enterprise customers.

-- Datalink.net joined the Phone.com Alliance Program as an application
developer and consultant/systems integrator. Inclusion in the program
significantly enhances the reach of Datalink.net's current WAP-enabled
offerings and ensures tight integration with future WAP applications and
services.

Datalink.net - The Wireless Architects(TM)

Datalink.net powers a new generation of wireless devices, enabling enterprises and consumers to customize, interact with and respond to critical business data. As a pioneering wireless application service provider and infrastructure architect, Datalink.net has become a top provider of wireless data and one of the first companies to deliver real-time wireless financial information.

In conjunction with Chase Manhattan Bank, Datalink.net developed Global Market Pro(TM), a wireless application for traders and financial professionals. Through its acquisition of Cross Communications, the Company serves a portfolio of marquee customers, including AOL, AT&T, Bank of America, Dow Jones, Citibank, EDS, Motorola and Qualcomm. Datalink.net is based in San Jose, CA, with research facilities in Vancouver, British Columbia and offices in Chicago, Florida and New York. For more information: http://www.datalink.net.

This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "intends," "believes" and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.