Datapoint and Vertical Financial Holdings enter into Letter of Intent to form a joint venture to develop and market Datapoint's MINX(TM) video conferencing technologies.

SAN ANTONIO, Texas--(BUSINESS WIRE)--August 1, 1995--Datapoint Corp. (NYSE: DPT) announced today that it has entered into a Letter of Intent with Vertical Financial Holdings, an international merchant banking firm, to form a joint venture to develop and market Datapoint's MINX video conferencing technologies on a world-wide basis.

As part of the arrangements, Datapoint will transfer its MINX patents to a new company in which Datapoint will initially own a 100% interest. Vertical will be granted a 25% interest in this company if it achieves certain financial benchmarks with the right to bring its equity ownership up to 50% for an additional $15 million. This new company, MINX Patents Inc. ("Patents"), will continue to license the MINX patents on a world-wide basis. Presently VideoServer Inc. and VTEL Corp. are licensees of the MINX technology. Separately, a second company, MINX Technology Inc. ("Technology"), will be formed to which Datapoint will contribute the other assets of its MINX business. Datapoint will own 35% of this company and Vertical and its investor group will own 65%. Vertical will initially contribute $1.5 million to the capital of Technology and will continue to fund Technology's working capital requirements. It is further contemplated that Vertical will secure a minimum of $12 million in additional capital for the company within a one year period through a public offering. All future patents and other intellectual property developed by Technology or Datapoint concerning video conferencing will be owned by Patents.

As part of the arrangements, it is contemplated that Technology will enter into strategic alliances with Shared Technologies Inc. (NASDAQ:STCH) and Arel Communications and Software Ltd. (NASDAQ:ARCLF). Shared will be responsible for marketing and providing maintenance and support service for the MINX system in the United States as well as providing certain administrative and back office support functions. It is contemplated that Arel will manage and execute Technology's R&D strategy as well as market and provide maintenance and support service for MINX outside of the United States. Vertical Financial Holdings has successfully supported technology driven companies such as the above two companies, Stratasys Inc. and MDI Inc.

According to Asher Edelman, chairman of Datapoint, "The above joint venture and strategic alliances will allow Datapoint to maximize the commercialization of its existing MINX technology and provide the basis for future developments and on-going support and maintenance. The strategic alliances with Vertical, Shared Technology and Arel Software provide a platform for what is hoped will be significant sales both domestically and internationally."

The parties anticipate entering into definitive agreements and closing within the next 30 days.

Datapoint, a leading supplier of automotive dealer applications, network information technology, telebusiness and desktop video conferencing solutions, markets its products and services in 49 countries world-wide.

CONTACT: Gerald Agranoff, 212/371-7713