Design Automation Systems Inc. Agrees to Acquire St. Louis-Based COAD Solutions Inc.

HOUSTON--(BUSINESS WIRE)--March 31, 1999--

Design Automation Systems Inc. -- now trading publicly since its acquisition by Loch Exploration Inc. (OTC BB:DASI) -- today announced it has acquired St. Louis-based information technology consulting firm COAD Solutions, Inc., in a cash and stock transaction valued at approximately $3.5 million.

The addition of COAD Solutions provides systems integrator Design Automation Systems with a highly experienced team of consultants specializing in PeopleSoft implementations, custom development and upgrades. The company also provides design and implementation of knowledge management systems, Internet/intranet development and project management services, and markets "SQL Ace," a premier software product providing versatile ad-hoc SQL execution against any ODBC-compliant database.

"COAD Solutions has an outstanding group of technology consultants and provides focused, value-added services that will further strengthen our relationships with customers and business partners," said Design Automation Systems founder and CEO Carl R. Rose. "We believe that COAD Solutions' expertise will be welcomed by many of our customers, and their growing client base creates an additional market for our core hardware business."

Founded in 1996, COAD Solutions has grown at an annual rate of 100 percent over the past three years and plans to continue this outstanding growth during 1999 based on current operations primarily in the Midwest.

Under terms of the agreement, COAD Solutions will be operated as a wholly owned subsidiary of Design Automation Systems and will be led by COAD Solutions' current Managing Partner and President Jeffrey S. Sexton, an experienced information systems professional and management consultant.

"We are excited about the possibilities that this acquisition offers for COAD Solutions and our clients," Sexton said. "Design Automation Systems provides greater financial and operational flexibility and an opportunity to leverage the company's strong relationships with key hardware vendors. These new capabilities will enable us to offer a broader portfolio of products and services to clients and provide our company with new avenues for growth."

Design Automation Systems also announced today that its planned acquisition of New Logic Inc., was canceled after the two companies failed to reach agreement on final terms of the proposed transaction.

Design Automation Systems Inc., is a systems integrator, custom programmer, and premier dealer of Internet security solutions and products for Compaq Computer (NYSE:CPQ); Hewlett Packard (NYSE:HWP); IBM (NYSE:IBM); and Sun Microsystems (NASDAQ:SUNW). Since its inception in 1985, Design Automation Systems has received numerous industry awards and has been ranked as one of America's Fastest Growing Private Companies by Inc. magazine (1992). It is regularly included among Houston's fastest growing companies in The Houston 100.

Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of the Company's customers, competition and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.