Translation Group Ltd Files a Demand for Arbitration With the AAA to Enforce Its Rights to the Gedanken System Under 1996 Licensing Agreement With Applied Knowledge Systems International.

Business Editors

HADDONFIELD, N.J.--(BUSINESS WIRE)--Nov. 27, 2001

The Translation Group, Ltd., (OTCBB:THEO), announced today that it has filed a demand with the American Arbitration Association ("AAA") against Applied Knowledge Systems International, Ltd. ("AKSI") to enforce its licensing rights under a 1996 Licensing Agreement.

The Translation Group ("TGL") has made a substantial investment in AKSI , including over $1.6 million in cash, pursuant to the 1996 Licensing Agreement, under which it has exclusive rights to the Gedanken System, a revolutionary automated software translation system with great market potential.

As recently as June, 2001, TGL and AKSI, jointly announced that the patented Gedanken System would be available immediately through a joint marketing program led by The Translation Group.

The Gedanken system is a series of libraries that dissect, understand, and store knowledge in a given language, for a given topic. A particular library may, for example, contain knowledge of financial information, medical information, or how a specific company communicates its way of doing business and expressing itself.

The system uses these knowledge libraries to transform information in one language to another language while absolutely preserving the original meaning, message, and style in the new language. It does this at a fraction of the time and cost required to achieve similar results using human or machine translation resources

Industry reports estimate the size of the translation market to be between $10B and $15B with a Continuing Annual Growth Rate ("CAGR") of 12%. Experts further estimate that only 10% of materials that need to be translated are actually translated due to severe resource constraints, i.e. human translators. TTGL intends to dictate to the existing marketplace a new paradigm for accomplishing the work of translation.

In the June 2001 announcement, Gerald Fingerhut, CEO of Applied Knowledge Systems International, Ltd. said, "The Gedanken System is the culmination of many years of research, development and rigorous testing. The system represents a new approach to language translation and is aggressive in its approach to solving inter-language communication problems and holds the potential to solve more general knowledge management and information retrieval problems, as well. We believe that The Translation Group, Ltd. combination provides the vehicle to successfully reach the growing translation market."

Charles Cascio, Chairman of the Translation Group, Ltd. commented, "It is in our best interest that certain unresolved issues be swiftly decided by the Arbitration Board, as our pre-marketing activities indicate a significant demand for this language technology. We believe that our rights are clear, and are therefore preparing to move ahead with the marketing plan, initially through our foreign subsidiary, WordHouse."

WordHouse, located in Amsterdam and Beijing, provides state-of-the-art localization services to its international clients, including Microsoft (MSFT), Sun Microsystems (SUNW), Oracle (ORCL), Alta Vista, Hewlett Packard (HWP) and IBM (IBM).

The Translation Group, Ltd., is a leading innovator of advanced computer software and systems designed to perform language text translations in an automated or semi-automated manner. The Translation Group, through its worldwide subsidiaries like WordHouse, provides total solutions for translation and localization needs in the information technology sector.

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Translation Group believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements contained herein include, among others, the need to protect its proprietary rights to its technology and the need to capture the markets for its technologies and products. Interested parties are also urged to refer to additional information regarding the Translation Group, which is contained in its reports to the Securities and Exchange Commission.