Datapoint Corporation Enters Into Agreement to Sell Operations; Files Reorganization Proceeding in Delaware.

Business Editors

SAN ANTONIO--(BUSINESS WIRE)--May 3, 2000

Datapoint Corporation (OTCBB:DTPT) announced today that it has entered into a Stock Purchase Agreement to sell its global operations (other than its e-commerce initiative described below), including the "Datapoint" name, for $49.5 million in cash and the assumption of net liabilities of $10 million.

A $5 million down payment was placed in escrow by the purchaser. The purchaser is a newly formed entity that will combine CallCentric Ltd., a European based company that provides call center solutions, and Datapoint's operations. The purchase price is funded by Alchemy Partners, who were advised by KPMG Corporate Finance.

The transaction is expected to be completed as part of a reorganization of Datapoint Corporation under Chapter 11 of the Bankruptcy Code of the United States. A petition for reorganization has been filed today in the United States Bankruptcy Court for the District of Delaware. The Company also has entered into a non-binding agreement in principle with an informal committee (the "Committee") formed by a majority of the holders of its outstanding 8 7/8% debentures due June 1, 2006, that provides for the allocation of the sale proceeds between the Company and its creditors, as well as equity distributions to bondholders and existing common and preferred shareholders. The Company expects to file a "Plan and Disclosure Statement" detailing the treatment of all creditors and holders of equity within 30 days.

The sale of the Company's operations is consistent with the Company's direction to focus its efforts and resources on acquiring, developing and marketing software with Internet and e-commerce applications. The Company's recent acquisition of CoreByte Inc. highlights this effort. The CoreByte subsidiary specializes in the development of modular, Web-based messaging and collaboration software. All the fully integrated features of CoreByte include e-mail, instant messenger, calendar, task manager, address book, notepad, links manager and file manager. CoreByte's communications and data management software is both powerful and inexpensive, thereby meeting the needs of the smallest business to the largest enterprise. It is fully customizable at any level and the interface can be designed to suit the branding needs of a business and/or can support advertising in a branded online community hosted by network service providers ( www.corebyte.com ).

With its U.S. headquarters in San Antonio, Texas, and international headquarters in Paris, France, the Corporation is a recognized innovator in modern networking infrastructure. The Corporation specializes in the design integration and maintenance of data, voice and networking communication solutions, including call center and computer-telephony integration (CTI).

This press release and the materials referred to hereby contain forward-looking statements regarding the Company' s business and future plans of operations. When used herein, the words "intends," "expects," "plans," "estimates," "projects," "believes," "anticipates," "contemplates," "represents" and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties. These and other important factors, including those set forth in the Company's Annual and Quarterly Reports on Form 10-K and Form 10-Q (available to the public at www.sec.gov), may cause the actual results and performance to differ materially from the future results expressed in or implied by such forward-looking statements. The forward-looking statements contained in this press release speak only as of the date hereof and the Company disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company's expectations or future events.