Wareforce.com Inc. Reports 1998 Results.

LOS ANGELES--(BUSINESS WIRE)--April 13, 1999--

Wareforce.com Inc. (OTC BB:WFRC) Tuesday announced its results for the year ended Dec. 31, 1998.

Revenues increased 11.6 percent for the year to $88.9 million in 1998 from $79.6 million in 1997. Wareforce experienced a net loss for 1998 of $3.2 million, or $0.38 per share, compared with a net profit of $62,000, or $0.01 per share, for the 1997 year.

The reported loss is composed of substantial, one-time charges including financing fees, acquisition consolidation expenses and non-cash items. The 1998 loss before interest, taxes, depreciation and amortization and the non-recurring charges amounted to $1.6 million, compared with a profit of $800,000 for the year ended Dec. 31, 1997.

The company reported a net loss for the fourth quarter of $2.1 million, or $0.25 per share, on revenues of $34.6 million, compared with a net loss of $99,000, or $0.01 per share, on revenues of $20.3 million for the 1997 fourth quarter. The increase in revenue for the fourth quarter was attributable to the acquisition of CY Investment (d.b.a. IMPRES Technology and Advanced Optical Distribution).

During the quarter the company was also awarded a California Multiple Award Schedule for Microsoft Select, placing Wareforce among an exclusive group of companies authorized to provide Microsoft products to California government entities.

"Overall, we are pleased with our progress," Orie Rechtman, chief executive officer, Wareforce, said. "The losses we experienced were in line with our expectations and in step with accomplishing our three main objectives: building a strong technical services organization, expanding geographically in both sales and service, and establishing substantial e-commerce capabilities for both business-to-business and consumer markets."

Rechtman continued: "In growing the company's technical service business, the acquisition of CY Investment was a major step forward. It brought us a valuable, new customer base and a large number of highly qualified sales and technical service personnel, along with an experienced technical staffing division. Both of these units are higher margin businesses for us and contribute important strengths we can build on."

Rechtman noted that Wareforce's plan to expand geographically has been further bolstered by the March 1999 acquisition of Kennsco, a technical service company with contracts in Florida, Minnesota, Illinois and seven other Midwestern states.

The acquisition also enhanced Wareforce's technical service capabilities in Florida, where Wareforce holds an exclusive, statewide Microsoft Select product contract for government and higher education users. In addition, the Kennsco Leasing Division, which expands Wareforce's ability to lease computer equipment directly to end-users, should increase the company's profit margins.

The company also strengthened its positioning as an e-commerce solution provider through the development of an online ordering system that integrates Wareforce's accounting system with those of its customers.

Wareforce's growth and profitability strategy has continued in 1999, Rechtman said. In February, the company acquired 70 percent of uMember.com, an online auction and sales company. Wareforce expects to generate revenues from the uMember venture through advertising and transaction fees and online sales, Rechtman said.

In March, the company entered into a letter of intent to purchase 20 percent of Bid On Line, an Internet Auction technology with reverse search engine capabilities, which will be used on the uMember site. The company has also changed its name from Wareforce One Inc. to Wareforce.com Inc. to better reflect its electronic commerce capabilities.

Wareforce.com Inc. is a single-source provider of information technology and technical services for Fortune 1000, small and mid-sized companies, government agencies and educational institutions.

The company believes its comprehensive technology offerings, together with its Internet-based, e-commerce purchasing solutions, enable customers to reduce total cost of ownership while shortening delivery time and streamlining implementation processes.

Wareforce.com is one of only 26 Large Account Resellers of Microsoft (Nasdaq:MSFT) products in the United States and provides sales agent staffing service to Apple Computer (Nasdaq:AAPL). Wareforce.com is listed in Standard & Poor's Corporate Records and has approximately 11 million shares outstanding.

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

This news release contains certain forward-looking statements which 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.