Wareforce Inc. Finalizes Acquisition of Kennsco Inc.; Deal Expected To Significantly Expand Wareforce's Technical Service Capabilities, Adds $20 Million to Its 1999 Revenues.

LOS ANGELES--(BUSINESS WIRE)--March 24, 1999--Wareforce.com, a single-source provider of information technology (IT) and technical services for government, higher education and business, has finalized its acquisition of Kennsco Inc., a Minneapolis-based technical services company.

Announced in February, the transaction consisted of a combination of cash, restricted stock and assumption of liabilities. Kennsco's revenues for 1999 are forecast at $20 million and its EBITDA at $1 million.

Wareforce believes that the move will strengthen its position as a technical services provider. Kennsco holds technical service contracts in Florida, Minnesota, Illinois and seven other Midwestern states. The acquisition greatly expands Wareforce's offerings in the state of Florida, where Wareforce holds an exclusive Microsoft Select product contract for government and higher education users. The transaction also gives Wareforce.com ownership of Kennsco's leasing division, which expands the company's ability to lease computer equipment directly to the end-user.

Kennsco will now operate as a division of Wareforce Inc. Kennsco's president, Ken Searl, will join Wareforce.com as a vice president, and Wareforce as vice president of its Kennsco division.

The Kennsco acquisition is consistent with Wareforce.com's growth strategy of acquiring companies with e-commerce capabilities or substantial technical service components that generate recurring revenues. Recent acquisitions include C.Y. Investment Inc. (d.b.a. IMPRES Technology and Advanced Optical Distribution) in September, a move that helped grow Wareforce.com's professional staff to nearly 200 and its annual pro forma revenues to more than $130 million.

Wareforce is one of only 26 large account resellers of Microsoft products in the United States and provides sales agent staffing service to Apple Computer. Wareforce.com is listed in Standard & Poor's corporate records, and has approximately 11 million shares issued and outstanding. The company expects to file for listing on the Nasdaq National Market System upon completion of its 1998 year-end audit, currently being conducted by Arthur Anderson.

Wareforce.com is on the World Wide Web at www.wareforce.com.

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. Readers are cautioned to consider these risks and uncertainties and not to place undue reliance on forward-looking statements.