IBS Interactive to Provide the U.S. Armys' Armor School At Fort Knox With Internet Based Training Program.

CEDAR KNOLLS, N.J.--(BUSINESS WIRE)--Sept. 28, 1999--

Company Expands Distance Learning Customer Base

IBS Interactive, Inc. (Nasdaq: IBSX), a full-service solutions provider of Internet connectivity, Internet programming, Network Services and training, announced today the formation of a strategic partnership with AB Technology to provide their services to the U.S. Army's Armor School at Fort Knox, the preeminent mechanized warfare training center in the world. Under terms of the agreement, IBS Interactive will provide the Armor School with an advanced Distance Learning application that will allow military personnel world wide to access training materials and complete, over the Internet, the first phase of a three-phase program in the Armor Captains Career Course.

Nick Loglisci, president and chief executive officer of IBS Interactive said, "Distance Learning over the Internet is a cost-effective and efficient means for companies, government agencies and private organizations to train their employees and personnel. Our work with the Armor School attests to the benefits of an Internet based program and the continuous growth of this industry."

IBS' Distance Learning program is a web-based 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.

Colonel Richard Geier at the Army Armor School said, "We are always interested in technology that can make a difference in how we do things and allow us to improve our efficiency and effectiveness. Distance Learning is the future and will enable us to appeal to younger students and become more student-oriented by accommodating different learning styles."

"IBS' advanced Distance Learning engine provides a significant opportunity for both a business or the military for training large groups of people simultaneously and asynchronously" said Joe Chatfield, Vice President of IBS' Southeast Operations, "military officers throughout the country, and around the world, will have greater access to a course that effectively prepares them for key battalion and brigade staff positions."

IBS Interactive provides comprehensive, cost-effective Internet and information technology solutions to businesses and organizations. Services are designed to enable companies to operate more efficiently by outsourcing their Internet functions, computer networking, maintenance, and technical support. IBS offers Internet Connectivity, Internet Programming and Applications Development and Internet Consulting and Enterprise services. Internet Connectivity services includes web-site hosting, leased line services and dial-up and e-mail access. Internet Programming and Applications Development services include web programming, database development and distance learning. Internet Consulting and Enterprise services includes information technology consulting, network design, implementation, training and support.

IBS' Web address is: http://www.interactive.net

Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meanings of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: business conditions and growth in the Internet and information technology services industry and general economy; competitive factors, risks due to shifts in market demand; changes in service mix; and the risk factors listed from time to time in the Company's reports filed with the Securities and Exchange Commission, as well as assumptions regarding the foregoing. The words "believe", "estimate", "intend", "anticipate", and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.