Zeros & Ones Announces New Change of Record Date on Stock Dividend in Spin-Off.

Business Editors/Hi-Tech Writers

SANTA MONICA, Calif.--(BUSINESS WIRE)--Sept. 17, 2001

Zeros & Ones, Inc. (OTC BB:ZROS - news) announced today that, in light of recent national events and the closing of U.S. markets, it has changed the record date of the first stock dividend in its new spin-off, Zeros & Ones Technologies, announced on August 23, 2001, from September 17, 2001, to September 24, 2001.

The stock dividend of 1 share of Zeros & Ones Technologies for every 20 common shares of Zeros & Ones will be payable to shareholders of record as of 5:00 p.m. Pacific Standard Time on September 24, 2001.

All are encouraged to verify that they are acknowledged as a shareholder of record in time for the record date. The Company's transfer agent is U.S. Stock Transfer Corporation, 1745 Gardena Avenue, Suite 200, Glendale, California 91103, telephone [phone].

"In deference to the ripple effect of our nation's tragedy and associated closure of the financial markets for most of last week, the Company felt this was appropriate. My observation is that both the United States and this Company are each comprised of very resilient, enterprising people. My thoughts and warm regards go out to those ill-affected by the events on the national scene along with my solemn belief that we can and will rebuild," remarked Robert J. Holtz, CEO of Zeros & Ones, Inc.

About Zeros & Ones Technologies:

Zeros & Ones Technologies, a privately held spin-off of Zeros & Ones, Inc. (OTC BB:ZROS - news), provides one of the world's most powerful video compression solutions, MC-10 (media compression times ten), to the fastest growing segments of the high technology market -- ITV (interactive television), broadband VOD (video-on-demand), and consumer electronic devices such as STBs (set top boxes), PVRs (personal video recorders), and next-generation DV (digital video) camcorders.

About Zeros & Ones:

Headquartered in Santa Monica, California, Zeros & Ones, Inc. (www.zerosones.com) is a diversified media holding company with digital convergence operations in technology, content, and production. This news release contains forward-looking statements, including but not limited to, those that refer to the company's plans for future securities listings, or future development plans or operating results.

Actual results could differ materially from those anticipated due to risk factors that include, but are not limited to, lack of timely development of products and services; lack of market acceptance of products, services and technologies; inadequate capital; adverse government regulations; competition; inability to earn revenue or profits; dependence on key individuals; inability to obtain or protect intellectual property rights; inability to obtain listing for the Company's securities; lower sales and higher operating costs than expected; technological obsolescence of the Company's products; limited operating history and risks inherent in the entertainment, telecommunications and Internet markets and business.