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Revenues Jump at Carnegie International Subsidiaries Since Qwest Agreement.

Business Editors/High Tech Writers

BALTIMORE--(BUSINESS WIRE)--Dec. 5, 2001

Carnegie International Corporation (OTC BB: CGYC) said today that revenues at two of its subsidiaries have increased substantially since the company signed an agreement with Qwest Communications this summer (see "Carnegie's Paramount Subsidiary Signs Master Agency Agreement with Qwest Communications," Business Wire, July 31, 2001).

That two-year agreement called for Qwest to provide enhanced services for two Carnegie subsidiaries, Paramount International Telecommunications of Vista, California, and The Federal of Associated Health Systems, Inc., of San Antonio. Qwest is providing live operator service in the U.S., Canada, and Mexico, and the ability to use its branding for all call records originating from Paramount and Federation properties, as well as access to the Qwest platform for calls placed from Western Europe to the U.S. with credit card, local exchange carrier (LEC) or third-party/collect billing.

Lowell Farkas, Carnegie's president, said revenues have increased at Paramount, which serves hotels and other businesses, primarily in 0+/- call auditing and international one-plus sectors, and Federation, which serves San Antonio, Texas, which serves hospitals with telecommunications services, primarily in 0+/- call auditing and international one-plus sectors.

Farkas said that yet-unaudited financial information showed that in the first six months of fiscal 2001, Paramount revenues had been down some 66% as compared with the same period in fiscal 2000. However, he said that results over the next four months - since the Qwest agreement was reached - showed a 143% increase in revenues over the same period a year ago. He said Paramount now has an annualized run-rate of $10.0 million based on this upturn, and $15.0 million estimated run-rate on the results of October and November.

At Federation, said Farkas, the results showed the same trend. Revenues, which had been up 15% during the first six months of fiscal 2001 as compared with fiscal 2000 jumped up 135% in the four months since initiating Qwest service. He said that Federation's run-rate is now $4.5 million on annual base and $5.0 estimated on the results of October and November.

Michael Eberle, Paramount's president, said that these increases may well have been greater except for the softness in the hotel billing segment of the business since the events of September 11.

Both Farkas and Eberle said that the improvement in revenue results announced were informational only, and neither Carnegie or its subsidiaries could provide assurance the trends will continue.

Carnegie also issued a reminder that litigation commenced in Maryland State Court on November 5 against its Grant Thornton LLC, its former auditor, remains temporarily suspended due to discovery violations by Grant. Carnegie, said Farkas, is awaiting findings of fact and conclusions of law by a third party neutral, and will inform shareholders of events pertaining to the litigation, including the resumption of trial, if needed, as soon as a scheduling order is available.

About Carnegie International Corporation

Carnegie International Corporation is an Internet support and computer telephony holding company with specialization in telecommunications products, services and distribution, and in E-Commerce and EDI.

Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this Press Release (as well as information in oral statements or other written statements made or to be made by Carnegie International Corporation) contain statements that are forward-looking, such as statements relating to the future anticipated direction of the telecommunications industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of Carnegie International Corporation. These risks and uncertainties included, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, change in Federal or state laws, and market competition factors.
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Publication:Business Wire
Geographic Code:1USA
Date:Dec 5, 2001
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