TeleComputing Announces First Quarter 2001 Financial Results.

Business Editors/High-Tech Writers

FORT LAUDERDALE, Fla. & OSLO, Norway--(BUSINESS WIRE)--May 1, 2001

-- Revenues at $3.2 million, up 113 percent over Q1 2000 and up 28 percent over
Q4 2000;

-- Consolidated operating expenses reduced 24 percent from $10.5 to $8.0
million;

-- Net loss before taxes improves by 41 percent Q1 2001 over Q4 2000 from
$-10.1 in fourth quarter to $-6.0 in first quarter;

-- Norwegian gross margins improve to 49 percent, from 44 percent in Q4 2000

TeleComputing (Oslo Stock Exchange:TCO), the leading Nordic ASP with operating subsidiaries in Norway, Sweden and the US, announced results for the first three months of 2001. Operating revenues for the first quarter of 2001 increased 113 percent to $3.2 million, compared to the same period in 2000; compared to the fourth quarter of 2000, revenues increased 28 percent. Revenues directly associated with the provision of ASP services comprised 88 percent of total operating revenues. Additionally, the financial results of the U.S. and Swedish operation made up a bigger proportion of total revenues than in any previous quarter. Specifically, U.S., Sweden, and SPS combined revenues represented 16 percent of total revenues in 1Q 2001.

Costs of Goods Sold in the first quarter 2001 were $2.0 million, compared to $1.0 million in the first quarter 2000, but equal to $2.0 million in fourth quarter of 2000. Operating costs for the period were $8.0 million. This represents an increase of less than 2 percent over the same period in 2000, but is 24 percent less than $10.5 million reported in fourth quarter 2000.

Net loss before taxes for the first quarter of 2001 was $6.0 million down from a net loss before taxes of $10.1 million in fourth quarter 2000.

According to Jason Donahue, president and CEO of TeleComputing, "These results indicate that TeleComputing's business model is both viable and moving in the right direction. We are pleased with the top line growth -- up 28 percent. In fact operating revenues have grown by an average of over 20 percent quarterly over the past four quarters. Further, we have managed to significantly reduce our operating expenses. I attribute these results to our focus on driving towards profitability and reducing unnecessary costs in each of our operating subsidiaries. In Norway, the most mature of our markets, we have signed up 14 new customers in the first quarter. In Sweden, our general manager, Johan Lindqvist, took command in early March and has already closed a deal with over 100 users. The US ASP and the SPS P&Ls, both under the direction of Alex Hawkinson, have now been completely restructured. The private label business is now up and running and in the US we have begun to meet our internal financial targets. Further, the SPS business has to date exceeded our growth expectations."

TeleComputing reported that its 12-month contract backlog at the end of the first quarter was $13.8 million, an increase of 17 percent over fourth quarter 2000. The total outstanding contract backlog was $35.7 million, an increase of 28 percent over the fourth quarter.

Additional first quarter highlights included:

-- Increased number of total customers 11 percent;
-- Released TECOS version 2.5, currently used by TeleComputing to
   activate new customers on Microsoft Windows 2000 and Microsoft
   exchange 2000;
-- Purchased the ASP-based customer portfolio in Norway of Customax,
   furthering the market share consolidation begun with the Electric
   Farm deal announced in Q4 2000;
-- Signed, under the auspices of its SPS P&L, an infrastructure
   planning project with Arribatec SA of Spain;
-- Signed 14 deals in Norway including LOG and Medeco, valued at 55.3
   MNOK (including Customax);
-- Signed an agreement in Sweden with Stromma Turism valued at SEK
   7.5 million;
-- Signed an agreement to deliver to Broadband Office (BBO) a private
   label hosted Microsoft Exchange 2000 service offering. BBO is a
   leading provider of applications and communications services in the
   U.S. small to medium size business market;
-- Signed a three-year deal in the US valued at $600,000 with Hospital
   Laundry Services;
-- Began a pilot project in the US with Balize, Inc. to serve as the
   exclusive host and manager of the Balize Virtual Office. The pilot
   is valued at $150,000, though follow-on revenue associated with
   hosting in 2001 is valued at an estimated $1 million;
-- Completed a share placement of 2.44 million new shares of common
   stock;
-- Recruited in US Vice Presidents of Sales and Business Operations
   and filled all major opened senior management positions.

About TeleComputing

TeleComputing, founded in Norway in 1997, is the world's first ASP. In 2001, the Company also launched a global Service Provider Software business that provides infrastructure and consultative solutions to companies who wish to provide TeleComputing or private label ASP services to their own customer base. Both businesses leverage TECOS(TM) developed to manage Information Technology costs and complexity, while improving accessibility, reliability and security for over 400 satisfied customers worldwide. The Company has a presence in Norway, Sweden and the U.S. with more than 200 employees and seven offices. TeleComputing has strategic business relationships with Microsoft, Citrix Systems, Exodus and Compaq. For more information on TeleComputing, please visit www.TeleComputing.com.

                           TeleComputing ASA
                 Consolidated Statements of Operations

                  3 months         3 months               Year
                   ended             ended                ended
(Amounts in     March 31, 2001    March 31, 2000      Dec. 31, 2000
 $000)          --------------    --------------      --------------

Revenues
 ASP Services          $ 2.733           $ 1.245             $ 7.234
 Other Revenues            473               260                 466

Total Operating
 Revenues                3.206             1.505               7.700

Cost of Sales
 Direct costs of
  ASP services           1.746               891               5.370
Direct costs of
 other revenues            220               167                 387

Total cost of sales      1.966             1.058               5.757


Gross profit             1.240               447               1.943

Operating Expenses
 Compensation            4.916             4.497              18.975
 Other operational and
  administrative costs   2.076             2.914              14.682
 Depreciation and
  amortization             966               515               2.780

Total operating
 expenses                7.958             7.926              36.437

Operating loss          (6.718)           (7.479)            (34.494)

Other Income/(Expense)
 Interest, net             410               609               2.141
Other income/(expense)     323               117              (1.070)

Other income/(expense)     733               726               1.071


Loss before Income
 Taxes                  (5.985)           (6.753)            (33.423)

Income tax benefit/
 (expense)                 147                (4)              4.804

Net Loss              $ (5.838)         $ (6.757)          $ (28.619)

Loss per Share           (0,23)            (0,31)              (1,22)


Weighted average common
 shares outstanding     25.614            22.053              23.439

                           TeleComputing ASA
                      Consolidated Balance Sheet
                              (unaudited)

(Amounts in     March 31, 2001    March 31, 2000      Dec. 31, 2000
  $000)         --------------    --------------      --------------

ASSETS
 Non-current assets
  Deferred Tax Asset     4.780                 -               4.781
  Intangible Assets      1.862             1.297               1.842
  Total intangible
   assets                6.642             1.297               6.623

Property, Plant and
 Equipment, net          8.677             5.788               8.230

Financial non-current
 assets                     74                 -                  70

Total non-current
 assets                 15.393             7.085              14.923

Current Assets
 Inventory                  40                35                  42
 Accounts Receivable     1.443               566               1.078
 Other current assets      504             1.732                 212
 Prepaid expenses          527               577                 349
 Cash and Cash
  Equivalents           33.161            40.588              28.533

Total Current
  Assets                35.675            43.498              30.214

TOTAL ASSETS          $ 51.068          $ 50.583            $ 45.137

LIABILITIES AND SHAREHOLDERS EQUITY

Shareholders Equity
 Common stock            $ 703             $ 595               $ 647
 Paid-in premium
  reserve               44.973            41.793              38.019
 Total Shareholders
  Equity                45.676            42.388              38.666

Long-Term Debt
 Capital lease
  obligations            1.771               780               1.986

 Other long-term
  Debt                      66                 -                  66

 Total Long-Term
  Debt                   1.837               780               2.052

Current Liabilities
 Trade accounts
  payable                1.519             2.546               2.267
 Taxes, including
  other social
  security               1.258               231               1.850

 Other current
  liabilities              778             4.638                 302

 Total Current
  Liabilities            3.555             7.415               4.419

TOTAL LIABILITIES
 AND EQUITY           $ 51.068          $ 50.583            $ 45.137