Prime Companies Inc. Signs Letter Of Intent To Sell Assets Of Trucking Subsidiary To U.S. Trucking, Inc.

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 8, 1998--

Prime Companies in Negotiations to Acquire

Global Internet and Software Firms

Prime Companies, Inc. (OTC BB:PRMC) announced today that it has signed a letter of intent to sell substantially all of its trucking subsidiary, Mid-Cal Express, Inc. and Mid-Cal Logistics, Inc., to U.S. Trucking, Inc. (OTC BB:USTK).

David Lefkowitz, President of Prime Companies, said, "This transaction completes our objective to transition Prime Companies, Inc. out of the transportation business so that we can now concentrate on acquiring Internet and software related businesses. We have already begun negotiations with several companies which will thrust us into the global high-tech market almost immediately."

The Company believes that the Internet and direct marketing industries are in a state of convergence. While the current Internet focus has been on the U.S. market, the majority of the world's current and future consumers are in established foreign and emerging growth markets. Prime Companies is in negotiations to develop a global direct marketing information network.

In a further announcement, Prime Companies confirmed that it intends to enter the wide-open Internet business-to-business information market in Asia through a joint venture. Lefkowitz, Prime's President, said, "Sales and marketing information is the key for any company wishing to direct market its products to emerging economies. We believe that, by building a series of aggressive key-market global joint ventures bent on capturing significant market information, we will be able to wield significant bargaining power. The company we are dealing with in China has detailed information on over two million business accounts. Combine that with Internet and direct market database information from other emerging economies and you can understand the negotiating power we envision."

Prime Companies, Inc. is a fully-reporting public company located in San Francisco, CA. More information on Prime Companies, Inc. can be found on the Internet at: www.MarketManagement.com. Press call Thomas Tedrow at [phone].

"Safe Harbor'" Statement Under the Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur.