Proginet board names Kevin M. Kelly chief executive officer.

GARDEN CITY, N.Y.--(BUSINESS WIRE)--Sept. 4, 1996--

Company appoints senior vice president CFO and a new director

Proginet Corp. announces the promotion of Kevin M. Kelly and three new senior executives.

These additions to the management team add substantial strength to the company and position the company to pursue its aggressive growth strategy.

Kelly, the company president, has been promoted to chief executive officer. Kelly has been the President and Chief Operating Officer of Proginet since June 1994, and prior to that he was a company director. In the past two years, he has led the company through a successful transition from a private research and development software firm to a market driven, publicly traded software company.

The company has also announced the appointment of Mel Schrieberg to senior vice president, responsible for sales, marketing and strategic business planning. In recruiting Schrieberg, Proginet gets the benefit of a respected executive with an outstanding marketing and sales track record, including the previous top spot at IBM's largest sales region, the Northeastern United States. Schrieberg has over 25 years of professional responsibility in organizations such as Rolm, ADP, and Xerox.

William Stauffer assumes the position of vice president and chief financial officer with responsibility for finance and administration, including human resources, contracts administration and facilities management. Stauffer is a New York State Certified Public Accountant with public accounting experience at Ernst and Young LLP. Stauffer has also served as controller, CFO and executive vice president at both public and private corporations.

Dr. Kelly Hyslop of Glandore, Ireland, has been appointed to Proginet's board of directors after having been instrumental in assisting Proginet in raising capital during its initial public offering and subsequent private placements. Dr. Hyslop has helped fund over 40 companies in the fields of computer software, medical technology and manufacturing.

"We are proud to promote Kevin to CEO," said Mohen, Proginet's co-founder and chief technical officer. "We are also especially pleased to have recruited Mel Shrieberg, which will be an enormous help in expanding the company's domestic and international channels. The addition of Bill Stauffer as CFO and Kelly Hyslop to our board provide additional dimension and strength to the management team. These are important steps for us to grow to the next level."

The company also granted stock options to purchase an aggregate of 225,000 shares of common stock at an exercise price per share od US$3.82 representing the closing price per share of the company's common stock on the Vancouver Stock Exchange on Sept. 3. The options were granted under the company Equity Incentive Plan for employees and are for a term of five years. The grant is subject to regulatory approval.

Founded in 1986, Proginet helps its customers to leverage their investments in IBM mainframes and client/server platforms, by providing them with software solutions that seamlessly integrate the information on mainframe computers with Microsoft Networks. Proginet is listed on the Vancouver Stock Exchange under the stock symbol "PRF.U". The U.S. stock quotation systems use different stock symbols including "PRF/U", "PRF.U/V", "PRFU.V" or other symbols depending on the quotation system.

For more information on Proginet, visit our web site at: http://www.proginet.com.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release, which has been prepared by the company.

CONTACT: Proginet, Garden City

Meyar Sheik, 516/248-3366

Fax: [phone]