INTERLINQ Anticipates Loss for the ThirdQuarter.

Business Editors, High-Tech Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--April 5, 2000

INTERLINQ Software Corporation (Nasdaq:INLQ) today announced that it anticipates a third-quarter loss of between $0.06 and $0.09 per share.

"Our record revenues last year, driven

by mortgage lenders adding capacity, have given way to fewer, but larger sales opportunities with longer sales cycles," said Jiri Nechleba, president and CEO. "As higher interest rates have dried up refinancing, lenders are now more focused on acquiring technology that streamlines operations and eliminates costs. Mortgage lending volume has plunged during the last six months, which has spurred cost-cutting industry-wide."

According to the Mortgage Bankers Association of America, from October 1999 to March 2000, there has been a median weekly decrease in loan volume of 39 percent, comparing current year lending to the prior year.

"Our strategy is to continue to offer ground-breaking lending solutions, including, for example, e-commerce capabilities we are developing in conjunction with Fannie Mae and Freddie Mac," Nechleba added.

The company announced key joint development efforts with Freddie Mac and Fannie Mae as well as a co-marketing agreement with RF/Spectrum Decision Management Corporation on March 23, 2000.

INTERLINQ Software Corporation, established in 1982, is a leading provider of technology that helps organizations effectively manage complex, information-intensive business transactions. The company's mortgage technology division provides business solutions to approximately 2,000 financial institutions at 7,000 sites. Customers include banks, savings institutions, mortgage banks, mortgage brokers, and credit unions, including a number of the top 100 originators. INTERLINQ's enterprise technology division provides process-centered, enterprise application integration (EAI) solutions both directly and through third-party application developers, OEMs and system integrators. INTERLINQ is a proven innovator in EAI software technology and business-process knowledge management; its technology solutions have won industry recognition and awards. More information on INTERLINQ's products and services is available on the company's Web site at http://www.interlinq.com.

When used in this discussion, the words, "believes" and "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. For a description of these risks and uncertainties, please see our most recent Annual Report on Form 10-K, filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.