TransNet Third Quarter Net Earnings Are $0.03 Per Share Versus a Loss of $0.04 Per Share on 30% Revenue Gain; Nine-Month Net Is $0.07 Per Share Versus a Loss of $0.01 Per Share.

Business Editors

BRANCHBURG, N.J.--(BUSINESS WIRE)--April 30, 2001

TransNet Corp. (OTCBB:TRNT), a leading IT sales and service company, today announced that net earnings for the third quarter of fiscal 2001 ended March 31, 2001, increased to $127,398, or $0.03 per diluted share, as revenue increased 30% to $15,348,438.

This compares with a net loss for the third quarter of fiscal 2000 of $176,792, or $0.04 per share, on revenue of $11,833,820. For the nine months ended March 31, 2001, net earnings were $343,725, or $0.07 per diluted share. This compares with a net loss of $29,575, or $0.01 per share, for the first nine months of fiscal 2000. Revenue increased 25% to $42,126,733 from $33,572,212 for the same period last year.

Noting that TransNet now has reported higher net earnings for four consecutive quarters, Steven J. Wilk, president of TransNet, said, "We are continuing to successfully execute our strategy to build our IT hardware and follow-on service, support and training business with large- and mid-sized corporations and educational institutions by helping our clients reduce the cost of IT ownership.

"The steady increase in revenue we have reported is one consequence of our success; the improvements in profit margins that we are now beginning to realize is another."

Gross margin on hardware sales increased to 7% for this year's third quarter from 5% a year ago, primarily the result of the more favorable discounts now available with TransNet's higher volume of hardware purchases. Gross margin on services rose to 30% from 23% last year, reflecting the company's migration toward higher-end network design and IP telephony, the trend toward higher margin project work, as well as improved monitoring of billable hours and utilization rates for its engineering and service professionals.

"We are optimistic about TransNet's opportunity for continued revenue and earnings growth. We are heading into the strongest season of the year in the education market and our book of business in this sector is strong. In addition, our large and growing base of corporate clients includes major pharmaceutical, oil and gas, and personal care companies whose businesses traditionally have fared relatively well during periods of economic uncertainty, as well as during less volatile periods," Wilk said.

At March 31, 2001, TransNet had working capital of $12,300,805, a current ratio of 4.5-to-1, no debt, and shareholders' equity of $13,057,711, or approximately $2.67 per diluted share. The company has repurchased approximately 442,000 shares of its common stock since January 1999 under its current 750,000 share repurchase authorization.

About TransNet

TransNet Corp. is a leading sales and support organization for personal computers, peripherals and networks, and provides sophisticated system integration and repair/maintenance services and user training. Its clients include Fortune 100 organizations, primarily in the pharmaceutical, oil and gas, finance and communications industries, as well as educational and governmental institutions.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release that are forward-looking statements are based on current management expectations that involve risk and uncertainties. Potential risks and uncertainties include, without limitation: the impact of economic conditions generally and in the industry for microcomputer products and services; dependence on key vendors; continued competitive and pricing pressures in the industry; product supply shortages; open-sourcing of products of vendors; rapid product improvement and technological change, short product life cycles and resulting obsolescence risks; legal proceedings; capital and financing availability; and other risks set forth in the company's filings with the Securities and Exchange Commission.

                            TransNet Corp.
                       Summary Income Statement
                              (Unaudited)

                                           For The Three Months Ended
                                                   March 31,
                                               2001           2000

Revenues                                  $  15,348,438 $  11,833,820
Pre-Tax Earnings                             $  193,027   $  (256,792)
Provision For Income Tax                      $  65,629    $  (80,000)
Earnings                                     $  127,398   $  (176,792)
Basic Net Income Per Common Share                  0.03         (0.04)
Diluted Net Income Per Common Share                0.03         (0.04)
Weighted Average Common Shares
 Outstanding -- Basic                         4,787,343     4,900,864
Weighted Average Common Shares
 Outstanding -- Diluted                       4,848,181     4,900,864


                                           For The Nine Months Ended
                                                   March 31,
                                               2001           2000

Revenues                                  $  42,126,733 $  33,572,212
Pre-Tax Earnings                             $  511,354    $  (29,575)
Provision For Income Tax                     $  167,629         $  --
Earnings                                     $  343,725    $  (29,575)
Basic Net Income Per Common Share                  0.07         (0.01)
Diluted Net Income Per Common Share                0.07         (0.01)
Weighted Average Common Shares
 Outstanding -- Basic                         4,829,514     4,900,864
Weighted Average Common Shares
 Outstanding -- Diluted                       4,873,057     4,900,864