Dauphin Technology, Inc., Announces E.U. Contract Details.

Business/High-Tech Editors

PALATINE, Ill.--(BUSINESS WIRE)--Oct. 31, 2000

Dauphin Technology, Inc. (OTC.BB:DNTK) today announced the signing of a revised contract to provide high bandwidth xDSL Set Top Boxes for a Telecommunications project first disclosed in a press release dated February 17, 2000. The European Union client, Estel Communications S.A., ("Estel"), a telecommunication applications and services company headquartered in Athens, Greece, was established in 1998 to implement high-speed communications infrastructure for residential and business applications.

The new contract contains revised delivery requirements and schedules necessitated by technological enhancements of the system, as well as additional information pertaining to other companies' requirements and participation in the project. Companies that have agreed to their involvement in the project include Cisco Systems, Inc. (CISCO), KPMG and Credit Suisse/First Boston. CISCO routing and switching equipment will be utilized in the system and financing for all CISCO products is being extended to Estel by CISCO Capital. As a result of their experience and involvement in similar projects throughout the U.K. and other countries, KPMG will provide Program/Project management. Additionally, Credit Suisse/First Boston is providing financial assistance for the project. The University of Thessaloniki in Thessaloniki, Greece has been retained to perform all of the testing for the system, as well as market research and penetration analysis. It is also planned to utilize N-Cube servers, which are in the final process of being tested for compatibility with Dauphin's product. Sun Microsystems' servers are also being considered depending upon the outcome of N-Cube testing. The multiplicity of choices for fiber optics suppliers and construction companies for excavation and cable laying will allow Estel to choose such vendors without delay to Dauphin's delivery schedules.

A prototype of the Set-Top Box was delivered to Estel in early September where it is undergoing testing at the University of Thessaloniki. Initial test results indicate Dauphin's STB exceeds performance specifications and system requirements. Because of various delays in the infrastructure of the telecommunications system in various municipalities in Greece, the terms of the original agreement have been modified to extend the delivery dates of the final versions of the Set-Top Boxes. Delivery of the first shipment of Set-Top Boxes is now expected at the end of the first quarter of 2001.

Dauphin Technology, Inc., a Palatine, Illinois based technology company with its manufacturing facility in McHenry, Illinois, and its engineering facility in Schaumburg, Illinois, Advanced Digital Designs, develops, manufactures and markets broadband communication products and hand-held computers, including its flagship product, the Orasis(TM).

Certain matters discussed in this news release are forward-looking statement involving certain risks and uncertainties including, without limitations, changes in product demand, the availability of products, change in competition, economic conditions, various risks due to changes in market conditions and other risks detailed in the Company's Securities and Exchange Commission filings and reports.