U.S. Technologies Inc. Announces Corporate Changes.

WASHINGTON--(BUSINESS WIRE)--Dec. 3, 1999--

U.S. Technologies Inc. (the "Company")(OTC BB:USXX) announced several corporate changes intended to accelerate the Company's growth and provide enhanced opportunities to return its operations to profitability.

Effective November 30th, James V. Warren joined the Company as a Director, Co-Chairman of the Board, and Co-Chief Executive Officer. Mr. Warren will serve in these positions in cooperation with Gregory Earls, now also Co-Chairman and Co-CEO. Mr. Warren will concentrate his efforts on daily operations. Mr. Earls will principally devote his efforts to financing, acquisitions, and other long term growth opportunities.

Mr. Warren, who is co-founder and President of The Spear Group, Atlanta, Georgia, has been a significant stockholder in U.S. Technologies for a number of years. The Spear Group is a global professional management company which develops and implements solutions in managing personnel and human resources. Mr. Warren has over 35 years experience in a broad range of management, sales and marketing, and project control positions.

Mr. J.L. (Skip) Moore was elected Executive Vice-President and Chief Operating Officer of U.S. Technologies. Mr. Moore will be responsible for all operating functions at the Company and its various outsourcing facilities. Most recently, Mr. Moore has been the Chief Operating Officer at The Spear Group. Prior to its sale to a major public corporation, Mr. Moore also served as CEO of Med-Quip, Inc., a medical products distribution firm. After receiving a B.A. Degree from Elon College in 1977, he has held a series of progressively responsible management and executive positions for the past 22 years.

To assist with its growth plans, U.S. Technologies has also engaged a corporate finance consultant who specializes in acquisitions, mergers, and strategic planning for small and mid-sized companies. U.S. Technologies, with the assistance of this consultant, intends to establish a plan for external expansion and conduct a search for appropriate acquisition candidates and other growth opportunities. The initial acquisition candidates will be companies participating in the federal Prison Industries Enhancement (PIE) Program. The Company also intends to investigate the possible privatization of state prison industries.

In addition to these staff changes, the Company announced that it has eliminated the dividend on its Series A Convertible Preferred Stock, par value $0.02 per share, as a means of conserving capital for future growth opportunities. In consideration of this dividend elimination and to raise additional capital funds from existing holders of the Preferred Stock, the Company lowered the conversion price for the preferred stock to the average market price over the past twenty days or $0.122 per share. The Company also intends to raise additional financing through the sale and issuance of preferred stock to institutional investors as well as existing holders of the preferred.

U.S. Technologies is a national outsourcing company which performs labor intensive work under contract with other manufacturing and service companies. U.S. Technologies performs this work using prison inmates under the guidelines of the PIE Program. The PIE Program, created by Congress in 1979, is designed to rehabilitate, educate, and train prison inmates and thereby provide them with marketable skills through their employment with private sector industry.

For further information contact John P. Brocard, Executive Vice-President at [phone] or Dana Rochelle, Investor Relations Officer at [phone] or visit the Company's web site at http://www.usxx.com.

Certain information in this press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 which statements can generally be identified by the use of forward-thinking terminology such as "intend", "plan", "enhance", "may", "expect", "estimate", "anticipate", or the negatives or other variations of these words or similar terminology. These forward-looking statements are made on the basis of management's plans and current analysis of the Company, its business, and the industry as a whole. These forward-looking statements, however, are subject to risks and uncertainties, including but not limited to economic conditions, competition, and exposure to regulatory and legislative changes. Such factors in some cases have affected, and in the future could affect, the Company's financial performance and could cause actual results to differ materially from those expressed or implied in such forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.