International Smart Sourcing, Inc. Subsidiary,Electronic Hardware Corp., Awarded Significant...

FARMINGDALE, N.Y.--(BUSINESS WIRE)--July 9, 1999--

Andrew Franzone, President and Chief Executive Officer of International Smart Sourcing, Inc. (ISSI) (Nasdaq:ISMT) announced that Electronic Hardware Corp. (EHC), a wholly-owned subsidiary of ISSI,

has been awarded a significant contract with the U.S. Government Defense Industrial Supply Center (DISC). EHC estimates that the full value of the contract can be as much as $15,000,000 over the course of a five-year period, with full benefits beginning in the year 2000.

The Award of Contract by DISC will transfer the current Government responsibility to EHC for supplying Knobs, Dials and Pointers (Federal Stock Class 5355) under an indefinite quantity contract for a base period of one year, with four one-year options on behalf of DISC. According to Mr. Franzone, "This contract positions Electronic Hardware Corp. as the major supplier of Federal Stock Class 5355 for all U. S. Government Ordering Activities World Wide. Furthermore, the contract also gives EHC full responsibility as the only U. S. Government's Inventory Stocking Point for this class."

EHC has over 35 years experience in the design, manufacture and marketing of injection molded plastic components and assemblies, including consumer, industrial, and military products.

In March, 1999, ISSI, the parent company of EHC, completed a successful Initial Public Offering of 1,250,000 Shares of Common Stock at $4.50 per share, along with 1,250,000 Redeemable Common Stock Purchase Warrants through Network 1 Financial Securities, Inc.

ISSI specializes in providing international outsourcing strategies for small to mid-size American manufacturers. ISSI believes that its strategy of providing international design, engineering and manufacturing partnerships helps to ensure the survival and prosperity of American manufacturers by positioning them for more effective and profitable product marketing. With the challenge of strong international competition, it is the intention of ISSI that American manufacturers participating in ISSI's outsourcing programs are better equipped to compete in their markets by turning lower overseas manufacturing costs to their advantage.

ISSI is also the parent company of Compact Disc Packaging, Corp., a new subsidiary that holds a five-year exclusive worldwide licensing agreement to manufacture, market, sell and sublease the Pull Pack(TM), a re-designed "jewel box", the packaging used currently for Compact Discs, CD ROMS and Digital Video Discs.

This press release contains forward-looking statements. Any such statements are subject to risks and uncertainties and could cause actual results to vary materially from those indicated. Actual results could differ due to a number of factors, including negative developments relating to unforeseen order cancellations or push-outs, the Company's strategic relationships, the impact of intense competition, and changes in our industry.