Skynet Holdings Inc. Announces Agreement With Octagon Business Software To Develop Global Delivery Systems for eTailers.

Business Editors

SANTA MONICA, Calif.--(BUSINESS WIRE)--Jan. 21, 2000

Pact Would Strengthen E-Commerce Firms Needing Customer

Fulfillment Services Worldwide Through Pony Express And

SkyNet Worldwide Express Companies

Skynet Holdings Inc. (OTCBB:SKYN) (Skynet), a provider of customized, same-day, next-day, and global time-sensitive delivery services through its U.S.-based subsidiaries Pony Express Delivery Services Inc. and SkyNet Worldwide Express, today announced an agreement with Octagon Business Software, based in Kuala Lumpur, Malaysia, to develop global delivery systems to enhance its delivery products and services for Web-based e-commerce clients.

&uot;Through our extensive network of over 1,100 offices in 100 countries, including 100 owned and operated offices in the U.S., e-tailers and e-commerce firms will now have a global solution to their delivery and customer fulfillment woes,&uot; said Byron Hogue, chairman and chief executive officer of Skynet Holdings Inc.

&uot;We are uniquely positioned to meet the explosive fulfillment demand of e-commerce because of the potent combination of our controlled cost structure, extensive time-specific delivery services and sophisticated tracking system. We add enormous value back to e-tailers and their customers at a time when brand and customer loyalty are key drivers of the new economy.&uot;

The agreement with Octagon will allow Pony Express and SkyNet Worldwide Express to take a leadership position in the new economy by providing e-commerce and e-tailers with customized, same-day, and next-day distribution to their online customers.

The move reflects Skynet's vision for creating a flexible and customer-specified network designed to satisfy the volatility of demands placed on e-commerce firms by their customers.

&uot;Projecting further along the value chain, Pony Express will complete its offerings of e-commerce solutions by seeking out and acquiring a transaction capability for handling finances and sales online and creation and operation of e-commerce sites themselves,&uot; Hogue said.

&uot;The final piece of the Pony Express puzzle is to then connect the complete Internet and transportation capability with Pony Express' international strength and services.&uot;

By linking its global transportation and delivery services to its technology expertise, Pony Express will be able to offer comprehensive e-commerce fulfillment solutions for Web retailers. The agreement between Skynet and Octagon will involve design, development and implementation of software systems supporting Skynet's global tracking and e-commerce programs.

&uot;According to post-holiday surveys, of the $66 billion spent by online shoppers this past holiday season, 22 percent experienced delayed or missed shipping problems. Couple that fact with the keyboard click speed of changing online store preferences and you begin to see why our fast, focused and flexible fulfillment solutions are the perfect answer for many of these problems,&uot; said John Luft, vice president of global marketing and sales for Skynet Holdings.

Pony Express currently reaches its more than 20,000 customers throughout the U.S. with 106 offices located in major and secondary markets. Its customers include Sears, John Deere, The Disney Store, the Federal Reserve Bank, Wells Fargo Bank, Xerox, as well as various health care, state and local agencies.

While possessing the second-largest international delivery system outside the United States with 1,100 offices in 100 countries, SkyNet Worldwide Express' customers include Sun Microsystems, Sony, Hilton Hotels, NEC Corp., Silicon Graphics, 20th Century Fox, Warner Bros. and Chevron.

&uot;If you look at our global network tied into our same-day delivery system and IT backbone, we can absolutely improve customer satisfaction for online buyers,&uot; Luft said. &uot;With the rapid growth of e-commerce and e-business throughout Asian and European markets, our global reach offers firms a bridge into U.S. online consumer markets, as well as provides U.S.-based e-tailers the ability to reach the global online consumer.&uot;

About Skynet Holdings Inc.

Skynet Holdings, with headquarters in Santa Monica, is a full-service provider of global transportation delivery services operating primarily as a domestic regional and international express courier for time-sensitive documents and packages. Services include time-certain deliveries within 24-48 hours of pickup; next flight out services for same-day expedited deliveries; local ground transport; freight forwarding services; bulk shipment of mass mailing materials for local distribution; and global logistics services incorporating the company's proprietary computerized tracking system. Skynet currently operates Pony Express Delivery Services Inc., with headquarters in Atlanta, as well as company-owned SkyNet Worldwide Express offices in England, Malaysia and Australia. In addition, Skynet provides worldwide delivery services to its customers through a network of more than 1,100 independently owned and operated &uot;SkyNet Worldwide Express&uot; offices in more than 100 countries.

In conjunction with the provisions of the new &uot;Safe Harbor&uot; section of the Private Securities Litigation Reform Act of 1995, this news release may contain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations. All such forward-looking statements are necessarily only estimates of future results and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors, which could affect Skynet Holdings Inc. are included in the company's Form 10 filed with the Securities and Exchange Commission.