DemandStar Now Has Over 90 Agencies in 15 States, Announces 2nd Quarter Conference and Letter to Shareholders.

Business Editors

PLANTATION, Fla.--(BUSINESS WIRE)--July 20, 2000

DemandStar.com, Inc. (OTCBB:DMND), a leading provider of business-to-government (B2G) e-commerce solutions, announced today it now has agreements with over 90 government agencies in 15 states. DemandStar operates an electronic marketplace that unites government purchasers with suppliers of goods and services.

DemandStar now has government agency members in AZ, CA, CO, FL, GA, IL, MN, NC, NV, OH, SC, TX, VA, WA and WI and over 9,000 suppliers, both domestic and international.

DemandStar will hold its first conference call on July 26th at 2:30pm EST to announce its second quarter results. The conference call will be simulcast on the web at www.vCall.com.

In a letter to shareholders, DemandStar's President and CEO, Ozzie Ramos, discussed DemandStar's business model, strategic position, and future prospects. A copy of this letter to shareholders is attached, and is available on the Company's web site at www.DemandStar.com.

DemandStar's electronic marketplace enables governments to purchase goods and services more efficiently, and makes it easier for suppliers to do business with government agencies. Suppliers can become part of this purchasing stream by registering at www.DemandStar.com or by calling 800/711-1712.

DemandStar is a publicly traded company under the symbol DMND (DMND.OB on some services).

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties detailed in DemandStar.com's filings with the Securities and Exchange Commission, including Form S-1, as amended (file No. 333-93445).

July 18, 2000

Dear Shareholder:

I would like to take this opportunity to welcome you as a fellow shareholder in DemandStar and in the exciting new frontier of business-to-government (B2G) and business-to-business (B2B) eCommerce over the Internet. This letter is intended to help you better understand our vision, our market positioning, and what we see as our sustainable competitive advantages.

DemandStar's electronic marketplace enables governmental agencies to purchase goods and services more efficiently and makes it easier for commercial vendors to do business with government agencies. Membership in DemandStar's Internet-based procurement network is provided free to governmental agencies that enter into an agreement to distribute all of their formal bids and requests for proposal - through DemandStar to vendors, who pay an annual subscription fee per county to be registered in DemandStar's network.

This model is different from most other dot-com companies in the following ways:

-- Develop a dynamic strategy and successfully execute that strategy

-- Measure results. Everything we do has quantifiable measurement criteria
associated with it. You have no chance of improving what you do not measure.

-- Our business model is sound and it is based on actual results from

operations.

-- Develop a dynamic strategy and successfully execute that strategy

-- Measure results. Everything we do has quantifiable measurement criteria
associated with it. You have no chance of improving what you do not measure.

-- We have an excellent track record (something few other dot-coms

can boast about) with a growing list of governmental agencies

(counties, cities, school districts, utilities, airports, etc.)

using our system on a daily basis as part of their purchasing

function.

Government agencies are joining the DemandStar network at an impressive rate; in fact, 36 agencies joined the DemandStar network during May and June this year. We now have over 90 agencies in 13 states that will procure more than $1 billion of goods and services through DemandStar's Internet-based procurement system over the next 12 months. While this is impressive, it is only the beginning.

Vendor signups have also been increasing significantly. During the second quarter of 2000 we have seen our registered vendors increase from 4,915 to 8,220. We expect to double the number of registered vendors in the third quarter and double that again in the fourth quarter of 2000. Based on this trend, we project within one year to have 100,000 paying vendors increasing by 10,000 a month. On the average, vendors are signing up for multiple counties, and we see this trend increasing over time.

To recount our recent accomplishments, I must start by saying how pleased I am with the results of the spin-off of DemandStar from H.T.E., Inc. through a Rights Offering. Over $6 million was raised in May 2000, and DemandStar became a publicly traded company (OTC bulletin board: DMND, some quote services require the symbol DMND.OB). DemandStar has approximately 7.65 million shares outstanding. We have recently implemented several investor relations strategies, which we anticipate will increase awareness and visibility with the institutional and individual investment community.

We also recently entered into a strategic relationship with The Innovation Groups, Inc. (IG), a 21 year-old, non-profit association of 450 technology trend-setting government agencies. The IG relationship is expected to significantly increase the number of governmental agencies that become members of DemandStar's network.

Our management team has put in place a series of key growth initiatives; the most important was to rapidly increase the direct sales force team. We have built our sales organization to approximately thirty professionals. This is the largest Business-to-Government (B2G) national sales force in the nation focused entirely on local government procurement. Our recently completed (third) sales training session for new Account Executives, was very successful; graduates from this session have already signed agencies less than six weeks after completing their training. Graduates from the first two training sessions are contributing significantly to our growing list of government agencies. We are planning a fourth training session for new Account Executives in August 2000.

We are also significantly enhancing our marketing services and operations teams to complement the sales efforts and to ensure top-quality delivery of our services during this period of significant growth. Finally, we have built a world-class web development team, who are in the final stages of creating new products and services to be rolled out over the next two quarters. The first of these, already in Beta testing, is a new bi-directional electronic quoting system, which allows buyers and sellers to come together to quickly complete transactions on-line. This quoting system will result in an additional revenue stream for DemandStar. This product sets the stage for Business-to-Business transactions in the future.

We have developed comprehensive financial models of DemandStar's business operations by correlating our historical data of agency and vendor signups with our highly structured sales pipeline analysis. Based on these financial models and DemandStar's currently projected revenue and expenses, we anticipate that DemandStar will execute the current business strategy without the need for additional funding and will become cash-flow-positive during the first half of 2001.

As a shareholder of DemandStar, you should be well informed about the management team's philosophy. I would like to share a few key points with you:

-- Develop a dynamic strategy and successfully execute that strategy

-- Measure results. Everything we do has quantifiable measurement criteria
associated with it. You have no chance of improving what you do not measure.

-- Hire the best people, provide them with the best training, tools,

and work environment, and make sure that they are all

appropriately motivated and rewarded. We recognize that a

company's ultimatesuccess depends upon its people

-- Develop a dynamic strategy and successfully execute that strategy

-- Measure results. Everything we do has quantifiable measurement criteria
associated with it. You have no chance of improving what you do not measure.

As a stockholder, you will want to stay current with information about DemandStar; let me direct your attention to our home page and Investor Relations web site. On the home page (www.DemandStar.com) you will find a listing of new agency members as well as upcoming events DemandStar will participate in across the nation. Our Investor Relations page can be reached from our home page. There, we post our quarterly results, news releases, links to SEC information, and other investor information. I encourage you to listen to our earnings announcements on www.Vcall.com. The quarterly earnings conference call will be held at 2:30 PM on Wednesday July 26, 2000.

As an indication of our confidence in the DemandStar opportunity, the board of directors and the executive management team have purchased over one million shares of DemandStar common stock at $1 per share or higher. You can rest assured that your investment objectives as shareholders are precisely aligned with ours.

The ultimate goal of DemandStar is to deliver superior financial returns to its shareholders. I cannot guarantee success -no one can - but I can promise you that from the board of directors down, we will pursue success with relentless determination.

I want to thank our employees for their outstanding contributions to the early success of DemandStar and especially thank you, our shareholders, for the confidence you have put in this most exciting, new company.

If you have any questions or suggestions, please feel free to e-mail me at [e-mail].

Sincerely,

O. F. Ramos Chief Executive Officer

Except for the historical information contained herein, the matters discussed in this shareholder letter are forward-looking statements, such as whether DemandStar will be successful in significantly increasing its agency and vendor member networks, becoming profitable or cash-flow positive and generating immediate incremental revenue from its new electronic quoting system, that involve risks and uncertainties detailed in DemandStar's filings with the Securities and Exchange Commission, including Form S-1, as amended (file No. 333-93445), and actual results or events could differ materially from those anticipated in the forward looking statement.