Korea Electric Power Data Network Company -- KDN -- and Excalibur Renew Strategic Reseller Agreement.

Business Editors/Hi-Tech Writers

VIENNA, Va.--(BUSINESS WIRE)--July 18, 2000

Leading Korean Utility and Integrator Announces New Customers Using Korean Language Search Technology as Country's Intranet/Internet

Commerce Market Continues to Soar

Excalibur Technologies Corporation (Nasdaq:EXCA), a leading provider of advanced, search-powered solutions for intelligently accessing and utilizing high-value, multimedia content over the Internet, intranets and extranets, and Korea Electric Power Data Network Co. (KDN), today announced that, for the third consecutive year, KDN has renewed its license as the exclusive reseller of the Excalibur line of intelligent search and content management solutions to the Korean market.

In addition, KDN announced a number of significant new customers as the Intranet/Internet Commerce market in Korea continues to grow at a rate of 120 percent per year. KDN is the information services provider and system integrator for its parent company, the Korea Electric Power Corporation (KEPCO).

As part of the renewed agreement, KDN is Korea's sole reseller of Excalibur RetrievalWare, Excalibur RetrievalWare WebExpress and Excalibur Screening Room. Previously, KDN had signed an OEM agreement with Excalibur to localize Excalibur's flagship RetrievalWare product line to the Hangul (Korean language) character set, add a full Korean language semantic network (which enables concept searching), and market the localized product to major corporations in Korea.

The Hangul version of RetrievalWare is a high-end knowledge delivery solution targeted for the major corporations and government agencies in Korea. Using this localized product, end-users are able to access Hangul information in any datatype from across the enterprise and transform it into competitive knowledge.

In addition, using Excalibur's Visual RetrievalWare SDK and Video Analysis Engine (VAE), KDN also has developed a Video on Demand (VOD) application that will be marketed in Korea.

Among the new customers that have signed on with KDN are Ewha Women's University, Internet BigBang, the Institute of Textile Development, the Korea Broadcast Institute, Korea Electric Power Plant Service, the Ministry of Industry and Resource and Seoul City Hall.

"KDN is committed to supporting knowledge management initiatives that deliver key enabling technologies and solutions to businesses in Korea," said Mr. Cheong Youn Dong, President and CEO, KDN. "With the upcoming merger between Excalibur Technologies and Intel's Interactive Media Services division, we expect to expand KDN's business in Korea."

"The KDN - Excalibur partnership continues to grow and we are excited about KDN's commitment to deliver our solutions to this rapidly advancing market," said Pat Condo, President and CEO, Excalibur Technologies.

Upon closure of Excalibur Technologies' upcoming merger with Intel Corp.'s Interactive Media Services division (announced May 1, 2000), KDN also intends to expand its relationship with Excalibur by introducing an Application Hosting Service and enabling owners of branded high-value content, such as sports and entertainment, to produce and securely sell their audio and video content over the Internet.

Korea Electric Power Corporation

Korea Electric Power Corporation (KEPCO) is a government owned enterprise established to promote electric power resource development, provide efficient power generation, and contribute to the stable growth of Korea's national economy by ensuring a reliable and economical supply of electric power.

Korea Electric Power Data Network Co.

Korea Electric Power Data Network Co. (KDN) was established in 1992 as subsidiary of KEPCO. It has grown at a rate of 250% per year as a result of its efforts to achieve absolute credibility with clients.

In 1994, KDN was named to the National Industrial Information Network business by the government and assumed operation and maintenance of computer and information systems and communication facilities from KEPCO. More than 1,200 expert engineers are working in the areas of system integration, system management, facilities automation, information and communication service.

About Excalibur Technologies Corporation

Founded in 1980, Excalibur Technologies Corporation (Nasdaq: EXCA) is a recognized leader in high-performance, search-powered, multimedia content management solutions for intelligently capturing, indexing, managing, accessing and utilizing valuable digital content - including text, images and video.

Excalibur works with Global 2000 corporations, software developers, application service providers and government agencies to power Intranet and Internet solutions, corporate portals and eCommerce sites.

Excalibur customers and partners include ABC News, AT&T, Akamai/INTERVU, BG Technology, Bloomberg, The Boeing Company, British Telecom, CareerBuilder.com, DataChannel, Discovery Communications, Encyclopedia Britannica, Exodus, Harvard Medical School, ICI, iXL, Johnson Space Center, Loudeye, NCR, Nortel Networks, Parametric Technologies Corp., QXL.com, Raytheon, Reuters, Sony, StorageTek, UCLA, United Airlines, Watson Wyatt and The World Bank.

On May 1, 2000, Excalibur and Intel's Interactive Media Services Division announced an agreement to merge and form a new company. The transaction is subject to customary closing conditions, including regulatory review and shareholder approval, and is expected to close in the third quarter of 2000. Plans for the new company focus on achieving a leading role in web-based interactive media services.

Contact Excalibur at 800/788-7758 or 703/761-3700, via e-mail at [e-mail] or visit our web site at www.excalib.com.

The Excalibur logo and the following are worldwide registered trademarks of Excalibur Technologies Corporation: Excalibur Technologies Corp.(R), RetrievalWare(R), EFS(R), and APRP(R). Excalibur Internet Spider(TM), Excalibur Screening Room(TM), The Excalibur Edge(TM) partners program, and their respective logos are trademarks of Excalibur Technologies Corporation.

This release contains forward-looking statements, which are based upon current expectations or beliefs, as well as a number of assumptions about future events. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including without limitation, business and economic conditions and growth in the computing industry and continued success in technological advances, any of which may cause actual results to differ materially from those described in the statements.