IBS Interactive's Distance Learning Solution Helps Customer Win Award; IBS Interactive's Proprietary Software Demonstrates E-Business Solution.

Business & Technology Editors

CEDAR KNOLLS, N.J.--(BUSINESS WIRE)--May 1, 2000

IBS Interactive, Inc. (Nasdaq: IBSX), an e-business and IT solutions provider ("the Company"), today announced that its customer, the U.S. Army's Armor School at Fort Knox, was the recipient of the United States Distance Learning Association's ("USDLA") Excellence in Distance Learning Programming award for its Armor Captains Career Course - Distance Learning ("ACCC-DL") program. IBS Interactive's technology provides the U.S. Army with a customized, web-enabled software platform which they use for the first of a three-phase training program.

The USDLA's purpose is to promote the development and application of distance learning for education and training. Distance learning utilizes the Internet, as opposed to a traditional classroom style setting, for educational and training purposes. The USDLA awarded the Excellence in Distance Learning Programming award to the ACCC-DL program in the government category. IBS Interactive had previously announced a strategic partnership, in September 1999, with AB Technologies to provide the ACCC-DL with distance learning tools.

"On behalf of the Armor Captains Career Course, I am pleased to accept this USDLA award for excellence in Distance Learning Programming," said Colonel Richard Geier of the U.S. Army Armor School. "We have implemented a distance learning solution, underpinned by IBS Interactive's learning management system, that is training the next generation of Army leaders. With this web-enabled software platform, we have the ability to maximize our teaching efforts, giving our students the capability to learn the skill-sets required to keep them ahead of the rapid technological changes taking place in a very competitive environment."

"We are proud to be the foundation for the ACCC-DL initiative. The award demonstrates the effectiveness of our solution in providing a customized, web-enabled learning management system," said Nick Loglisci, President and Chief Executive Officer of IBS Interactive. "Our Distance Learning application is an important component of our e-business offering. The application allows for the dynamic management of the student, instructor, and course material. The benefit to businesses is that it can empower their employees with enhanced skill-sets in a self-paced environment, giving them a competitive advantage."

IBS Interactive's advanced Distance Learning program is a web-based, database-driven, instruction system allowing organizations to train large numbers of geographically dispersed personnel without the need for face-to-face classroom settings. The key feature of the IBS distance learning engine is its "instructor-in-the-loop" methodology that allows students to communicate with instructors and gain valuable feedback while online. Instructors are also able to monitor a student's performance on a real-time basis. By permitting students and instructors to interact on-line in a rich, detailed fashion, IBS' Distance Learning system provides a more effective learning environment than other computer-based techniques.

For the ACCC-DL program IBS Interactive's Distance Learning application allows military personnel worldwide to access the programs' training materials and complete, over the Internet, the Army's certification requirements. In addition to providing real-time feedback, interaction, and performance analysis, the application provides the ACCC-DL instructors with a statistical baseline of the student performance which carries into subsequent phases of the program.

"Leveraging our success with the ACCC-DL, we are currently implementing a distance learning solution for the Marine Corps and are pursuing opportunities to implement this solution to other military and non-military organizations," concluded Mr. Loglisci. "Our distance learning solution furthers our evolution into a total e-business solutions provider focused on providing mid-market organizations with the tools to facilitate e-business."

About IBS Interactive

IBS Interactive provides comprehensive e-Business and information technology (IT) solutions to businesses and organizations. Professional services include programming and applications development, network services, consulting and training. Web-site hosting services include shared and co-location hosting. Internet access services include dedicated lease lines, dial-up and digital subscriber line (DSL) Internet access.

IBS Interactive's web address is: http://www.interactive.net