Management Technologies Inc. (MTI) completes acquisition of DESISCo from Digital Equipment Corporation Inc.; US$10 million acquisition to increase MTI's projected revenues by 100% to over US$40m; DESISCo adds world class trading applications to MTI's flourishing banking systems business; Digital awards MTI worldwide Value Added Reseller status and extends favorable loan terms; MTI board revokes proposed one (for eleven.)

NEW YORK--(BUSINESS WIRE)--March 7, 1995--Management Technologies Inc. (NASDAQ:MTCI) today announced the completion of the acquisition of DESISCo.

Formerly the front office trading systems business of Digital Equipment Corporation Inc., (NYSE:DEC), DESISCo (now renamed MTI Trading Systems) is expected to add some US$20m to MTI Abraxsys Systems' projected revenues of US$20m. MTI Abraxsys Systems division is the former Winters Partners international banking systems division acquired by MTI in July 1994. Group revenues of the combined operations are projected to exceed US$40m.

The acquisition was underwritten by the Wellbourne Trust, MTI's largest shareholder, which was instrumental in negotiating favorable terms for MTI. To enable a swift completion, Digital has agreed to accept approximately half the acquisition cost in the form of a promissary note.

Digital has further endorsed its support for MTI by awarding the company Value Added Reseller status -- effective in all markets worldwide -- the highest status available to its software partners. This agreement ensures MTI beneficial terms for reselling Digital's hardware.

Following the financing of the DESISCo acquisition, MTI's board has decided that a one for seven reverse split would be most beneficial for the company's shareholders (this replaces an earlier proposal of a one for eleven reverse spilt). The one for seven reverse split now awaits shareholder ratification at the company's AGM in April 1995.

"We are delighted with the confidence Digital has shown by assisting with the financing of this acquisition," states Anthony Cataldo, chairman of MTI. "At a time when we recognize that our share price seriously undervalues the earnings capacity of this company, it would have been very expensive for us to finance this deal solely by issuing shares. The promissary note from Digital adds significant value to shareholders."

Keith Williams, president of MTI, states, "The industry is experiencing rapid transition and a number of our competitors are undergoing a period of consolidation and uncertainty. With proven products and a clear strategy, MTI is excellently positioned to win an increased market share. We believe the MTI Trading Systems products have a huge potential, and the strengthened sales force we are now putting in place will capitalize on this opportunity. Consequently, we fully expect to continue our recent record of organic revenue growth in excess of 30% per annum."

Anthony Cataldo continued, "We are excited about the increased interest in our stock. With solid earnings from both MTI Abraxsys Systems and MTI Trading Systems, and the reverse split imminent, we will no longer be viewed as a 'penny stock.' The contribution from MTI Abraxys Systems was already apparent in MTI's second quarter operating income of US$925,000. We now expect MTI Trading Systems to substantially enhance our earnings potential."

MTI: BACKGROUND INFORMATION

Founded in 1980, MTI specializes in the development, installation and support of international banking software and integrated trading room solutions. MTI incorporates two core operating divisions: MTI Abraxsys Systems and MTI Trading Systems. With annual revenues of approximately US$40 million and a work force of over 250 skilled personnel, MTI supports over 100 customers worldwide. Products include Abraxsys running on open systems IBS-90 on mid-range systems and Open Trade, the realtime information distribution platform. MTI is quoted on NASDAQ under the symbol "MTCI".

MTI Trading Systems' principal product for real-time market data distribution is the OpenTrade family of open systems products and is available on Digital, IBM, SUN and HP. MTI Trading Systems is based in London and has an installed customer base of some 50 leading financial institutions in 20 countries, amounting to approximately 6,000 trading positions worldwide.

The flagship product of MTI Abraxsys Systems is Abraxsys. Abraxsys automates back office banking functions, relating to treasury, trade finance, lending, private and retail banking and is available on the latest open systems from Digital, IBM and HP. MTI Abraxsys Systems also has worldwide exclusive marketing rights to Monarque, the PC-based deal capture and position keeping system. MTI Abraxsys Systems operates in all major financial centers, serving some 50 customers in 35 countries.

CONTACT: Management Technologies Inc.

Anthony J. Cataldo

212/557-0022

212/557-0309(fax)

or

For Press:

Write Image Limited (London)

Clare Walsh

011/44/0/171-383-2220

011/44/0/171-383-0678(fax)