Strategia Corporation Annual Results.

LOUISVILLE, Ky.--(BUSINESS WIRE)--March 31, 1998--Strategia Corporation (AMEX: SAA) announced results for the year ending December 31, 1997. Revenues increased to $11,022,000 in 1997 versus $9,455,000 in 1996. The company recorded an after tax net loss of ($3,132,000) or ($0.75) per share for the year versus an after tax net loss of ($724,000) or ($0.29) per share for 1996.

Strategia's North American revenues increased by 59% for the year due to the revenue from millennium services which commenced in 1997. European earnings were comparable to previous year earnings as the market for millennium services there has lagged behind that in the United States.

Strategia has also amended its 1997 reports on Form 10-QSB to reflect a reallocation of revenue recognized from its millennium services contracts As amended, the quarterly financials reflect after tax net losses of ($140,000), ($537,000), and ($735,000) on revenues of $2,543,000, $2,258,000, and $2,831,000, for the first, second and third quarters, respectively.

Richard W. Smith, Chief Executive Officer of Strategia Corporation, stated that, "Strategia made great strides in 1997. We were very successful in hiring a number of high quality professionals to staff our millennium services operation in both the U.S. and Europe. We established a large renovation and testing center in Shelbyville, Kentucky and we demonstrated that we can compete in the Year 2000 market by signing numerous contracts with a diverse clientele. Our staff's experience is more extensive now and our capabilities have grown to include a wide range of areas affected by the Y2K problem.

"Our 1997 financials reflect the investment made to build the infrastructure necessary to handle a large volume of millenium services business. We incurred significant costs to hire and train staff and to lease and equip facilities. There was a period of time between when we incurred these costs and when we could generate sufficient work to properly utilize our capacity. Our first two significant millennium contracts also represent an investment in the business as we incurred losses but gained invaluable experience, and our current business efforts demonstrate that our investment is now paying off. Our marketing staff is generating more contracts and our technical staff is being utilized more efficiently and at a higher workload level."

Several comments relating to earnings and revenues set forth above are forward looking statements. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties, and events that may be beyond the control of Strategia, and no assurance can be given that such results will be achieved. Potential risks and uncertainties include the ability to procure, properly price, retain, and successfully complete projects, the availability of technical personnel, changes in technology, and competition. Other risks and uncertainties are discussed under the heading "Certain Factors That May Affect Future Results" in the Company's periodic reports filed with the Securities and Exchange Commission.

CONTACT: Murdock Capital Partners Corp.

Thomas M. Dean or Luis J. Mejia, 212/421-2545