$3.7 Million Distribution Agreement for MAVIS inEastern Europe Announced by Carnegie...

BALTIMORE--(BUSINESS WIRE)--Dec. 9, 1998--Carnegie International Corporation (OTC BB:CAGI) announced that it has entered into a definitive agreement with Tiller International of Monte Carlo, Monaco, to license, market and distribute its proprietary MAVIS(TM) voice-activated platform in Russia and

Lowell Farkas, president and CEO of Carnegie, said the license agreement is for $3.7 million (U.S.), and includes 1,000 copies of MAVIS software in English and Russian. He said this transaction, which will be recorded in the fourth quarter of 1998, will substantially reduce the balance of Carnegie's long-term debt.

The agreement is the second multi-million dollar international distribution pact for MAVIS/Carnegie this week. Earlier it announced that Profit Thru Telecommunications (PTT) of Sheffield, U.K., a wholly-owned subsidiary, reached an agreement valued at $2 million with Precitel of Neuchatel, Switzerland, a private company specializing in the sale and distribution of telecommunications equipment, to integrate MAVIS with French and German language modules from Lernout & Hauspie (NASDAQ:LHSPF).

"This has been one of the most exciting weeks in Carnegie's history," Farkas said. "Our agreement in Switzerland and our license agreement in Eastern Europe demonstrate MAVIS's universal appeal."

Farkas said with this agreement in place, Carnegie is optimistic it will exceed its previously-announced projection of earnings of $0.16 basic per share for 1998. He also said that with these agreements and other soon-to-be-announced agreements in place, Carnegie projects 1999 sales of approximately 10,000 MAVIS units, which should produce some $40 million in revenue.

Introduced by Carnegie earlier this year, MAVIS (for Multi-Language Automated Voice Independent System) is an entirely voice-activated auto attendant that communicates intelligently with the caller. Using advanced, proprietary voice recognition software, it answers incoming calls and, upon the caller's verbal instruction, recognizes the name or department requested and directs the call accordingly. The MAVIS interface is available in English and all foreign languages supported through licensed Lernout & Hauspie software and Dialogic CPU telephony cards. It can be used 24 hours a day, 365 days a year, or implemented after hours, on weekends, or when incoming call volume requires support for "only-human" operators. It runs on Windows 98(R) or Windows NT(R), and can be easily modified to meet the needs of any business or organization. MAVIS runs on any existing business telephone system, and supports voice messages, faxes and e-mail.

Carnegie International Corporation (OTC BB:CAGI) is a holding company specializing in Internet, telephony and telecommunications products, services and distribution. Carnegie's primary wholly-owned subsidiaries include: RomNet Support Services, Inc., an Internet, e-business and technical support services company based in Boston; Profit Through Telecommunications (Europe) Ltd. (PTT), a telecommunications software company providing business solutions utilizing proprietary speech recognition, touch tone and bar code responses to send and/or receive information; Talidan, a reseller marketing telephone time and information at discounted rates in Europe, South America, and other emerging markets, ACC Telecom of Columbia, Maryland, a leading reseller of equipment and business telephone systems from Comdial (NASDAQ:CMDL), SONY(R) (NYSE:SNE), and Sprint(R) (NYSE:FON), and Voice Quest, Inc., of Sarasota, Florida, a developer and provider of speech recognition and voice mail technologies and products. For the first half of fiscal 1998 ended June 30, Carnegie reported total income of $8.9 million and after-tax basic earnings per share of $0.075. For fiscal 1997, Carnegie reported total income of $6.9 million and after-tax basic earnings per share of $0.07.

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.

MAVIS is a trademark of Carnegie International Corporation. Other trademarks are properties of their respective owners.