Dauphin Technology, Inc. Signs Distribution Agreement With BULFON S.A.; Orasis Receives Strong Acceptance in Europe.

PALATINE, Ill.--(BUSINESS WIRE)--Feb. 17, 1999--Dauphin Technology, Inc., (OTC Bulletin Board: DNTK) and BULFON S.A (a company of INTRACOM S.A. Group) today announced the signing of an international distribution agreement of Dauphin's hand-held computer, Orasis(TM). The signed agreement gives BULFON S.A. distribution rights for Orasis(TM) within Bulgaria, Romania, Yugoslavia, F.Y.R.O Macedonia and CIS States.

With the signing of the agreement, BULFON S.A. prepaid $325,000 to Dauphin for the delivery of its initial order of Orasis(TM) units. "This is the first phase of a valuable new relationship that we expect to reach $6 to $7 million before year's end," said Pericles Katsioulas, BULFON S.A.'s Chairman of the Board of Directors.

BULFON S.A. is a joint venture between Athens, Greece-based INTRACOM S.A., the leading telecommunications and informatics company in the Balkan region, and BTC, the Bulgarian state-owned Public Telegraph Telephone (PTT). Through its aggressive development and multimillion dollar investment policy at the end of 1998, BULFON S.A. acquired and maintains two-thirds of Bulgaria's national public payphone system. The company also supplies digital telecommunications equipment, services and executes turnkey projects in telecommunications and informatics.

"BULFON S.A. is impressed with the processing power Orasis(TM) brings into a pen-based, handheld unit, enabling the fastest and most effective computing solution for a growing mobile workforce," said Alexander Georgiev, Executive Director of BULFON S.A. "Not only will Orasis(TM) help streamline our telecommunications operations in Bulgaria, we believe the Balkan region will embrace Orasis(TM) as the remote computing solution of choice. By introducing this product in the whole region, this would lead to further modernization of the overall activities and bring up the existing systems to a higher level of integration, efficiency, and reliability."

"We are pleased to partner with the Balkan region's leading provider of telecommunications equipment and services," said Andrew Kandalepas, Chairman and Chief Executive Officer of Dauphin. "BULFON S.A.'s strong distribution channels create exciting new sales opportunities for Orasis(TM) and help increase our market share in Europe. We foresee this to be the first of many important breakthroughs in establishing our presence in Europe."

Orasis(TM) is a full-function, hand-held, pen-based computer-the first to incorporate Intel's 233 and 266 MHz Pentium MMX processor. Designed for a variety of users in the medical, utilities, transportation, law enforcement, government, and financial industries, Orasis(TM) is a revolutionary, convenient and lightweight alternative for companies currently using notebook computers. The versatile computer can also integrate various accessories, including floppy drive, CD-ROM, DVD, GPS for global positioning, wireless radio, extended battery pack, and other modular devices. Dauphin sells Orasis(TM) to commercial buyers through software integrators and value-added resellers.

Dauphin is a technology holding company that includes R.M. Schultz & Associates, Inc. (RMS), a contract engineering and manufacturing services firm being utilized for the manufacture of Orasis(TM). Dauphin common stock is listed on the over-the-counter bulletin board under the symbol DNTK.

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 inventory risks due to changes in market conditions and other risks detailed in the Company's Securities and Exchange Commission filings and reports.