Interactive Telesis Announces Corporate Changes.

Business Editors & High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Jan. 31, 2002

Interactive Telesis(TM) Inc. (OTCBB:TSIS), a provider of customized interactive voice response (IVR) and speech-enabled products and services, today announced cost cutting measures and changes to its board of directors.

In order to align costs with revenues, the company has elected to put a portion of its staff on a temporary part time status. This decision came after the company's largest client, Global Crossing, representing more than 60 percent of its annual revenue, filed for Chapter 11 bankruptcy. The move from full time to part time status will allow the company to evaluate the quality of the ongoing revenue stream and determine what other actions are required from an ongoing business perspective.

"After reviewing the various alternatives available and the underlying business climate, we concluded that putting a portion of our staff on a temporary part time status provides the most effective means to restructure the company in a process that will enable us to continue uninterrupted daily operations," said Al Staerkel, president and CEO of Interactive Telesis.

The company also announced today that Cindy Mersky has resigned from the board of directors, effective immediately. Mersky cited responsibilities for other clients as the reason for her resignation The board plans to appoint an ad hoc nominating committee to identify and recruit qualified candidates to fill the vacancy resulting from Mersky's departure.

Recent Investor Activity

BH Capital and Reichmann International have made demands to convert their share position into a debt position pursuant to their right to do so under specified conditions set forth in their original investment agreement of June 2000. The company has declined their request at this time because it does not meet the specified conditions.

About Interactive Telesis

Interactive Telesis specializes in custom interactive voice response (IVR) services and deployment of automated speech recognition (ASR) technologies. Interactive Telesis presents a very compelling offering for companies wishing to leverage the benefits of IVR and speech recognition without the high cost of ownership, capital outlay and internal IT staff requirements. Clients include industry leaders such as 3D Systems, Global Crossing, Lucent, MCI, Nike, Sprint, Wells Fargo, Worldcom and Verizon, among others. Interactive Telesis is headquartered in San Diego. For additional information, call 858/523-4000 or visit www.interactivetelesis.com.

Interactive Telesis is a trademark of Interactive Telesis Inc. All other trademarks are properties of their respective owners.

FORWARD-LOOKING STATEMENT DISCLAIMER

Some of the statements made in this press release discuss future events and developments, including our future business strategy and our ability to generate revenue, income and cash flow, and should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify these "forward-looking" statements by words such as "expect," "anticipate," "believe," "estimate," "intend," "plan," and similar expressions. These statements involve a high degree of risk and uncertainty that exist in the company's operations and business environment and are subject to change based on various factors that could cause actual company results, performance, plans, goals and objectives to differ materially from those contemplated or implied in these forward-looking statements. Actual results may be different from anticipated results for a number of reasons, including the company's new and uncertain business model, uncertainty regarding acceptance of the company's products and services and the company's limited operating history.