iExalt, Inc. Investigates Potential Shorting Activities; Direct Plea to Shareholders Initiates Bold Campaign to Restore Stock Value.

Business Editors & High Tech Writers

HOUSTON--(BUSINESS WIRE)--Aug. 7, 2001

iExalt, Inc. (OTCBB:IXLT), a Christian products and services company with significant technology and Internet-related activities, today announced an aggressive shareholder campaign to slow potential "shorting" of its stock. Shorting occurs when stock is sold which is not owned directly by the seller, then at a later date the seller of the shorted stock purchases stock to replace that which was sold. For several months, iExalt's management has perceived that its stock price has remained well below a reasonable value (based on its own internal analysis, reported financial results relative to total assets, revenues and continual improvement toward a positive cash flow position, and in comparison to similar companies) because of excessive shorting.

While a number of OTCBB companies have entered the legal arena to resolve their issues with short sales, iExalt is asking its shareholders to actively participate in the curtailing of this potential shorting activity.

"We believe that our stock value has potentially been a victim of significant 'shorting' by a host of individuals and/or organizations," wrote Donald W. Sapaugh, chairman and chief executive officer of iExalt, in a letter mailed to all shareholders this week. He continued, "The stock 'sold' may be yours and may have been 'loaned' for the transaction (sale) without your approval."

Sapaugh asked shareholders to take an active role to counter potential shorting. He asked that they contact their brokers, determine who is responsible for account management that loans stock, and submit express written instructions to the account management department and broker denying specific or implied permission for them to loan their stock under any circumstance. In essence the company is asking for a "no loan legend" to be added to their stock.

Additionally, iExalt will petition the National Association of Securities Dealers (NASD) to be allowed to participate in the Limit Order Protection Program (Rule 6541), which extends the customer limit protection principles to OTCBB stocks. The pilot program, effective Aug. 1, 2001, prohibits member firms that accept customer limit orders from trading "ahead" of their customers for their their own account at prices equal or superior to the limit orders, without executing them at the limit price. The company applauds NASD for its actions in protecting shareholder values, and believes that these types of actions could assist in leveling the playing field for all public companies.

iExalt has reported steady financial improvement for three straight quarters; doubling of assets to $9.5 million from $4.7 million in the first nine months ending May 31, 2001; tripling revenue to $7.7 million from $2.5 million for the first nine months of the previous year; and maintaining their forward movement toward a positive cash flow position.

Headquartered in Houston, iExalt, Inc. was founded in 1999 to provide Christian products, services and Internet solutions to the Christian community. The company's strategy is to acquire, develop and manage a large channel of media (print, radio, software and Internet) in order to leverage its products and services in a cost-effective manner, and to migrate successful products and services to the Web. The iExalt family of companies includes:

-- iExalt.com, a Christian Internet destination

-- ISP filtering at www.CleanWeb.net

-- Christian Happenings, a Christian events magazine

-- Christian Times newspapers

-- ListenFirst.com, a Christian music news site

-- iSermons.com and TheParentLink.com, subscription-based resources for leaders


-- ChristianSpeakers.com, the nation's leading Christian speakers bureau

-- ChristianArtists.com, a full-service talent agency

-- iExalt Electronic Publishing, a digital content library

-- Life Perspectives and Dawson McAllister Live, nationally recognized radio
programs

-- Rapha Christian Counseling and PremierCare, healthcare related management
services

For more information about the company, visit www.iExalt.com.

The statements contained in this news release that are not historical fact are "forward-looking statements" which can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates," or by discussions of strategy that involves risk and uncertainty. Management cautions the reader that these forward-looking statements, including the discussions of the company's growth, operating strategies and expectations concerning market position, future operations, margins, revenue, profitability, historical facts, are only predictions. There can be no assurance that any of these expectations will be realized or that any of the forward-looking statements contained herein will prove to be accurate.