Dauphin Technology, Inc. Releases Financial Data On ADD Acquisition.

Business Editors/High Tech Writers

PALATINE, Ill.--(BUSINESS WIRE)--Sept. 25, 2000

Dauphin Technology, Inc. (OTC Bulletin Board: DNTK) today released the financial statements and pro forma financial information pertaining to its recent acquisition of Advanced Digital Designs, Inc., Advanced Technologies, Inc. and 937 Plum Grove Road Partnership, (collectively "ADD"). ADD generated consulting revenue of $3.2 million for the year ended December 31, 1999 and $1.68 million for the first six months of 2000. Earnings from operations were $1,785,000 for the year ended December 31, 1999 and $948,000 for the six months ended June 30, 2000.

Utilizing historical financial information, the combined companies of Dauphin Technology, Inc. and ADD would have generated revenues of $5,513,000 for the year ended December 31, 1999 on a pro forma basis. Pro forma revenues for the six months ended June 30, 2000 amounted to $1,700,000. "Without the significant, non-recurring expenses incurred by Dauphin during 1999, the addition of ADD would have brought the combined results of operations to a break even point," stated Christopher L. Geier, Executive Vice President of Dauphin Technology, Inc. "Our current projections indicate that the combined results of operations will produce positive earnings, before the amortization of goodwill," he went on to say.

The purchase price of $6,000,000 was allocated to the acquired assets, consisting of building and equipment. The excess of the total purchase price over the allocation of fair value of the net assets acquired generated goodwill of $5.5 million. The company utilized its equity draw down facility with Techrich International Limited and sold 648,618 shares of its common stock for $2.5 million.

"The acquisition of the engineering firms elevates Dauphin's tradition of exceptional engineering," commented Andrew J. Kandalepas, CEO and President of Dauphin Technology. "The revenues and profits are an added benefit." ADD continues to provide engineering consulting services to customers such as Motorola, Philips, NextNet and many others. Current plans for ADD are to maintain its core customer base and grow engineering consulting revenues.

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

Certain matters discussed in this news release are forward-looking statements 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.