Positive Sales Trend, Security Contracts and ASIC Chip are Highlights from Annual Shareholders' Meeting.

Business Editors

TRAVERSE CITY, Mich.--(BUSINESS WIRE)--April 20, 2000

Versus Technology, Inc.'s (OTCBB:VSTI) annual shareholders' meeting held in Traverse City, Michigan on April 14, 2000, was attended by its largest audience to date. The meeting focused on the Company's U.S. and international sales efforts, reviewed the successful March Eagle Eye(TM) product launch and emphasized the impact the Company's new Application Specific Integrated Circuit (ASIC) chip will have on the locating industry.

"First quarter revenues met budget and the second quarter is on target," stated Gary Gaisser, President and CEO of Versus Technology, Inc. "By re-emphasizing support for our existing resellers and adding new resellers to our customer base, we have reversed the downward trend in revenues experienced in the last half of fiscal 1999. These results combined with our strong entrance into the security market lead me to conclude that Versus is poised to have a record year."

During a presentation of the agreements reached with major players in the security industry such as Checkpoint, HID, Axcess, Automatic Identification Technologies and Motorola, Gaisser referred to the impact he expects the Eagle Eye(TM) system will have on the asset control industry. Versus previously announced a deal to work with HID Corporation, a leader in the access control industry, to develop an HID/Versus active tag for the $12 billion radio frequency identification (RFID) segment of the security industry. "One powerful observation we experienced during the ISC West product launch was that other companies we expected as competitors were actually eager to become integrators with the Versus system," said Gaisser. "Because of this response, we expect acceptance of the Eagle Eye(TM) solution to be fast paced and have a strong impact on the security industry."

Versus pointed to its increased spending on research and development as demonstrative of its commitment to continual fine-tuning and expansion of its family of products. A prime example of this commitment is its innovative ASIC chip set, which will reduce the number of high-cost components in Versus products by 33 percent. "This advancement in the manufacturing process will enable Versus to produce higher quality products at lower costs, allowing us to penetrate markets that were initially excluded due to higher overall system prices," stated Henry Tenarvitz, Chief Operating Officer of Versus. "We expect lower system costs to pave the way for the `smart building' of the future which we expect will incorporate locating systems as part of a facility's standard infrastructure," added Gaisser.

In the formal portion of the meeting, shareholders re-elected the former Board of Directors to serve another one-year term. Those elected were Gary Gaisser, Julian Schroeder, David Gray, James Ross and Samuel Davis. "We are happy with the endorsement implied in the election results and thank our investors for their continual support," stated Gaisser. "I am proud of what our Company has accomplished, both in product development and sales performance. I look forward to our continued success."

Versus Technology, Inc. (http://www.versustech.com) (Versus) is a developer of leading-edge technology used for process improvement in the healthcare, security, government and corporate markets. Versus' core technology makes locating systems more precise, security systems more intelligent, data collection routines automatic and asset management systems more efficient. Versus' systems, which are currently installed in hospitals, corporate facilities, government facilities and other complexes, permit the automatic and accurate registry of essential management and business information. By monitoring the precise location of personnel or equipment and automatically recording events associated with their locations, the systems offer real-time asset and staff locating, automatic data collection, access/egress control and two-way communication capabilities. Versus' proprietary locating systems are sold primarily through an expanding international network of resellers who market Versus' products as enhancements to their existing product lines. In addition to the reseller network, Versus is also represented in Canada by an independent sales agent.

Safe Harbor Provision

This document may contain forward-looking statements relating to future events, such as the development of new products, the commencement of production or the future financial performance of the Company. These statements fall within the meaning of forward-looking information as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, economic, competitive, governmental and technological factors affecting the Company's markets and market growth rates, products and their rate of commercialization, services, prices and adequacy of financing and other factors described in the Company's most recent annual report on Form 10-KSB filed with the Securities and Exchange Commission, which can be reviewed at http://www.sec.gov. The Company undertakes no obligation to update, amend or clarify forward-looking statements, whether because of new information, future events or otherwise.