Pipeline Data Appoints Richard Cohen as President.

Business Editors

HARTSDALE, N.Y.--(BUSINESS WIRE)--Jan. 4, 2001

Pipeline Data, Inc. (OTCBB: PPDA) announced today that the company has appointed Richard M. Cohen as president and chief operating officer, effective January 1st 2001.

"I believe that Pipeline Data is poised to exploit a major opportunity involving data distribution," said Mr. Cohen. "I'm excited about the possibilities, and look forward to using my mergers, acquisitions and operating experience to help achieve the company's business model."

From 1992 to 1995, Mr. Cohen was president of General Media Inc., a multinational public company with interests in magazines, cable television, licensing and telecommunications, where he managed a staff of 300, and raised more than $200 million in a variety of financings, including $85 million of high yield public debt.

During 1999, he served as interim president during the "work out" or restructuring of National Auto Credit Inc. (OTCBB: NAKD), a public subprime auto finance company. His investment banking experience includes a number of years at Furman Selz, then part of Xerox Financial Services.

Mr. Cohen currently sits on the board of three other public companies -- Cross Media Marketing (AMEX: XMM); Directrix (OTCBB:DRCX); and Greg Manning Auctions (Nasdaq: GMAI) -- as well as Interlink, a privately held magazine wholesale and distribution company.

"Richard Cohen has worked on Wall Street and in corporate America for more than twenty years," stated Jack Rubinstein, Pipeline's chairman and chief executive officer. "He brings a great deal of operating experience, which will help us to create shareholder value."

Mr. Cohen has an M.B.A. from Stanford University, a B.S. cum laude from the Wharton School of the University of Pennsylvania, and a C.P.A. from the State of New York.

About Pipeline Data:

Pipeline Data, a Delaware corporation, is based in Hartsdale, New York. The company's common stock and A warrants trade on the OTC Bulletin Board under the symbols "PPDA" and "PPDAW" respectively.

Pipeline's CEO, Jack Rubinstein, was a founding board member of CD Radio Inc., which is now doing business as Sirius Satellite Radio (Nasdaq: SIRI).

This news release contains statements that are forward looking within the meaning of Section 21E of the Securities Act of 1934, and as that term is defined by the US Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to risks and uncertainties. Actual results may differ due to factors such as shifts in customer demand, competitive products and/or services, competitive pricing, technological shifts and other variables. The information and opinions herein are for informational purposes only and are not intended to be a recommendation or offer to sell, or a solicitation to buy, the securities of the company mentioned herein.