ST Systems Announces Record 1999 Revenues; Elects To Take Non-Cash Writeoffs Of $3.9 Million.

Business Editors

HAYWARD, Calif.--(BUSINESS WIRE)--May 25, 2000

ST Systems Corp. (CDNX:SYT) today announced record revenues of US$17.8 million for the year ended December 31, 1999.

The Company also announced a decision to take certain one-time charges, writeoffs, and accruals totaling US$3.9 million to ensure that the 1999 financial statements better reflect the short-term effects of the Company's product-line upgrades, recent management restructuring costs, certain inventory adjustments, and expansion of the Company's distribution channels. The charges, writeoffs, and accruals include the items referred to above as well as other items long carried on the books, namely US$1.5 million in R&D costs, US$800K in capital assets, and US$411K in goodwill associated with historical acquisitions.

     Year-End Results (year ended December 31, 1999 compared with
                 year ended December 31, 1998)

* Revenues were US$17.8 million compared with US$12.5 million, an
  increase of 42%.
* Profit, before one-time charges, writeoffs, and accruals
  demonstrated a similar growth of 39%. However, the writeoffs reduced
  profit from US$568K in 1998 to, as anticipated, a US$3.4 million
  loss in 1999.
* The writeoffs also reduced the earnings per share from US$0.05 in
  1998 to a loss of US$0.30 per share in 1999.
* Significantly, share market value increased from US$0.22 to US$0.65,
  a nearly threefold increase.

      Douglas Bailey, Chairman and CEO, said, "1999 saw a major shift in
ST's strategy, with a clear mandate to grow the Company more
aggressively. We delivered on that mandate both in 1999 and to date in
2000 by:

* Achieving revenue growth of 42%;
* Launching two new products and a new array of service
  offerings;
* Installing the biggest contract in the history of the Company for
  POS systems and service in 267 Lone Star Steakhouses;
* Beginning to build a company-owned dealer network through an
  acquisition program (three acquisitions announced in the past twelve
  months);
* Opening a Canadian office incorporating Marketing, Sales, and
  Product Management.
* Expanding into the sales and service of POS systems to pubs and
  beer-and-wine stores in BC and Alberta through acquisition of the
  assets of Timeac International Inc.
* Supplementing ST's historic teleselling program with "feet on
  the street" salespeople; and,
* Opening a new division -- the Supplies Division -- to sell
  consumables to restaurateurs."

All of ST's operating divisions recorded increased revenues in 1999, with Service being the star performer. The Company's subsidiary for quick-service restaurant POS systems, Documentor Sciences, while increasing revenues, did, however, under-perform. Strong measures are being taken to improve operations in this area since fast-food (or quick-service) restaurants represent a huge potential market for ST. Sable Technologies, the Company's provider of POS systems for table-service restaurants, continued to provide a stable, growing revenue base. "With the new sales structure and products launched in late 1999, we expect Sable to perform even better in 2000," Mr. Bailey added.

Another change effected at the beginning of 2000 was to shift the Company's shares to trading in Canadian rather than US dollars. ST also plans to change to reporting results in Canadian dollars in the first quarter of 2000.

ST Systems, through its subsidiaries Sable Technologies and Documentor Sciences, provides experienced, professional systems-integration services, addressing the POS and back-office needs of both table-service and quick-service restaurants. With its deserved reputation for 24-hour service and customer loyalty, ST Systems is favorably positioned for continued growth and profitability into the new millennium. Further information can be found at the ST web sites: www.sabletechnologies.com and www.documentor5000.com.

Shares of ST Systems trade on the Canadian Venture Exchange under the symbol "SYT". U.S. SEC exemption: 12g3-2(b)82-4094.

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