AmTec Reports Year End Results; Cellular SubscribersTriple.

NEW YORK--(BUSINESS WIRE)--July 14, 1999--

AmTec, Inc. (AMEX: ATC), an international telecommunications services company, today reported results for the year ended March 31, 1999. In this twelve-month period, the Company, through its joint ventures, was able to expand operations from two

cellular networks to six, increasing subscribers from 11,000 to 38,000. Most of this expansion was in the last six months of the fiscal year. System-wide revenues for the networks increased from less than $1 million to approximately $3,540,000. The cash flow to the Company's joint venture subsidiary, which is reported as "revenue" by them, increased from $216,000 to $781,745.

AmTec changed its accounting method from consolidation to equity reporting; therefore, the subsidiary's revenues are no longer consolidated to the parent. Instead, the subsidiary's results are noted under Investment in Unconsolidated Subsidiary. Mr. R. T. McNamar, President of AmTec, said, "The equity method simplifies our balance sheet and does not change our business or bottom line figures. Since our goal is to continue to create alliances, joint ventures and partnerships with other telecommunications companies, this reporting method should be very useful when explaining our diversified operations. In addition, about $30 million of our subsidiary's debt, which is non-recourse to AmTec, will no longer appear on the Company's balance sheet."

The Company reported a net loss of $6.2 million or $0.23 per share for the twelve-month period versus a loss of $6.8 million or $0.23 per share on slightly more shares outstanding the year before. The net loss is attributed to costs incurred in developing the cellular operations and pursuing other joint-venture networks in China such as cable television in Hunan Province with United GlobalCom as well as launching Internet and long distance communications services with two other corporate partners.

Looking ahead, Mr. McNamar, stated, "We are building a company that provides value-added telecommunications services worldwide. We are using our experience and operating presence in China to take advantage of evolving regulatory and market trends. Very recently, we announced the formation of IP.TEL with Fusion Telecommunications International, Inc., a multinational long-distance carrier which will provide value-added telecommunications services, initially telephony and data, between the U. S. and Asia. Most importantly, we expect it will begin to create a revenue stream in U.S. dollars this year."

"In June of this year," Mr. McNamar added, "we also announced our entry into the Internet Protocol fax services. Traditional faxing in Asia and especially in China is very expensive because of the very high long-distance phone rates. A Dataquest/Gartner Group survey projected that fax traffic over the Internet and related data networks will expand in the Asia/Pacific Rim from 44 million pages in 1997 to 5.6 billion pages by the year 2000 and China is expected to replace Japan as the leader in overall Asian fax traffic. Our subsidiary is already operative in seven major Asian cities and very shortly we will be adding Internet voice transmission to our Internet faxing services."

In summary, Mr. McNamar concluded, "Our financials for last fiscal year partially reflect our build-up of the cellular telephone network in China. Forbes, July 26, 1999, noted that demand is growing at more than 1 million new subscribers a month and will reach 200 million subscribers in 2010. China dwarfs everybody with their potential for growth. On average, Chinese users spend 400 minutes a month on their cell phones, three times as much as Americans. This fiscal year our goal is to increase shareholder value by not only expanding beyond greater China into Asia, but also to broaden our business into the long-distance traffic arena and to become a very important provider of Internet services."

AmTec, Inc. is an international telecommunications service company that provides voice, data and Internet telephony services through IP.TEL, a partnership with Fusion Telecommunications International, and IXS.NET, and holds joint venture telecom interests in the People's Republic of China.

Note: Forward-looking statements in this press release are necessarily subject to risks and uncertainties that may affect the accuracy of such statements. Such risks may include any political instability in China, any delays in construction of networks, and market acceptance of and demand for the Company's products. For a discussion of such risks, please refer to the Company's Form 10(k) filed with the Securities Exchange Commission for the fiscal year ending March 31, 1998. The Company undertakes no obligation to update such factors or to publicly announce the result of any revisions to the forward-looking statements contained herein.

AMTEC INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
MARCH 31, 1999 AND 1998
----------------------------------------------------------------------
                                              1999            1998

ASSETS
CURRENT ASSETS:

  Cash                                   $  2,093,141    $  2,134,662
  Accounts receivable                            --           114,661
  Prepaid expenses and other
   current assets                              38,805         108,082
                                         ------------    ------------
    Total current assets                    2,131,946       2,357,405

  Investments in and advances to
   unconsolidated subsidiary                2,496,480       5,074,217
  Property, plant and equipment, net           96,926         139,136
  Office lease deposit                         55,733         112,600
                                         ------------    ------------
    Total assets                         $  4,781,085    $  7,683,358
                                         ============    ============


LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:

  Accounts payable                       $    439,195    $    541,888
  Accrued expenses                            528,548         792,006
  Loans payable - shareholders                   --         1,452,553
                                         ------------    ------------
    Total current liabilities                 967,743       2,786,447
                                         ------------    ------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:

  Preferred Stock: authorized
   10,000,000 shares:
    Series E Convertible Preferred
     Stock: $.001 par value; 74 shares
     issued, 73.2 and 29.8 shares
     outstanding in 1999 and 1998,
     respectively                                   1               1
    Series G Convertible Preferred
     Stock: $.001 par value; 20 and 0
     shares issued and outstanding in
     1999 and 1998, respectively                    1            --

  Common Stock:  $.001 par value,
   authorized 100,000,000 shares;
   30,736,721 and 26,532,502 issued and
   outstanding in 1999 and 1998,
   respectively                                30,737          26,533

  Additional Paid-In Capital               36,947,244      33,149,142
  Accumulated deficit                     (33,646,491)    (27,394,590)
  Nonrefundable equipment purchase
   deposit
  Nonemployee deferred option cost, net          --        (1,378,125)
  Warrants                                    481,850         493,950
                                         ------------    ------------
TOTAL STOCKHOLDERS' EQUITY                  3,813,342       4,896,911
                                         ------------    ------------

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $  4,781,085    $  7,683,358
                                         ============    ============

    See notes to consolidated financial statements.


AMTEC INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED MARCH 31, 1999, 1998 AND 1997
----------------------------------------------------------------------

                             1999            1998            1997


REVENUES                 $       --      $       --      $       --
                         ------------    ------------    ------------

EXPENSES

  Selling, general and
   administrative           4,649,770       4,282,613       3,563,568
                         ------------    ------------    ------------

LOSS FROM OPERATIONS       (4,649,770)     (4,282,613)     (3,563,568)
                         ------------    ------------    ------------

OTHER INCOME (EXPENSE):

  Amortization of stock
   options granted to
   non-employees             (459,374)       (459,375)           --
  Interest expense               --          (125,586)       (129,039)
  Other - net                 (85,161)         70,853         (33,216)
  Write off of
   investment in
   affiliate                     --              --          (198,538)
                         ------------    ------------    ------------
   Total other expense       (544,535)       (514,108)       (360,793)
                         ------------    ------------    ------------

LOSS BEFORE EQUITY IN
 LOSSES OF UNCONSOLIDATED
 SUBSIDIARY                (5,194,305)     (4,796,721)     (3,924,361)

Equity in losses of
 unconsolidated
 subsidiary                  (385,139)       (606,647)       (140,524)
                         ------------    ------------    ------------

NET LOSS                   (5,579,444)     (5,403,368)     (4,064,885)

PREFERRED STOCK DIVIDEND      672,457       1,398,686          10,000
                         ------------    ------------    ------------

LOSS APPLICABLE TO COMMON
 SHAREHOLDERS            $ (6,251,901)   $ (6,802,054)   $ (4,074,885)
                         ============    ============    ============

BASIC LOSS PER COMMON
 SHARE                   $      (0.23)   $      (0.23)   $      (0.14)
                         ============    ============    ============

WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING        27,495,213      29,843,712      29,102,347
                         ============    ============    ============


CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED MARCH 31, 1999, 1998 AND 1997
----------------------------------------------------------------------

                               1999           1998           1997

CASH FLOWS FROM OPERATING
 ACTIVITIES:

  Net loss                  $(5,579,444)   $(5,403,368)   $(4,064,885)
  Adjustments to
   reconcile net loss
   to net cash used in
   operating activities:
    Amortization of
     deferred option cost       459,375        459,375           --
    Depreciation                 55,250         43,432         28,905
    Loss from abandoned
     assets                        --           87,441           --
    Gain from sale of assets        137           --             --
    Issuance of warrants for
     services rendered             --             --          479,500
    Issuance of common stock
     in connection with
     Series E buyback
     transaction                144,375           --             --
    Issuance of common
     stock and options for
     directors' fees and
     professional
     services rendered           16,500        151,957        725,091
    Equity in losses of
     unconsolidated
     subsidiary                 385,139        606,647        140,524
    (Increase) decrease in:

      Accounts receivable       114,661       (114,661)          --
      Prepaid expenses and
       other current assets      69,277         63,839       (111,243)
      Office lease deposit       56,867         (1,100)        55,700
    Increase (decrease) in:

      Accounts payable and
       accrued expenses         540,917        293,027       (485,959)
      Loans payable -
       stockholders                --         (111,000)      (150,000)
                            -----------    -----------    -----------

       Net cash used in
        operating activities (3,736,946)    (3,924,411)    (3,382,367)
                            -----------    -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:

    Investment in Netmatics        --          (87,441)          --
    Purchase of property
     and equipment              (13,427)       (29,212)      (106,028)
    Investment in
     unconsolidated
     subsidiary                    --         (276,000)      (654,000)
    Proceeds from sale of
     assets                         250           --             --
                            -----------    -----------    -----------

      Net cash used in
       investing activities     (13,177)      (392,653)      (760,028)
                            -----------    -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:

 Warrants issued for
  services rendered - net
  of charges to APIC               --         (215,546)          --
   Buyback common stock        (383,383)          --             --
   Buyback Series E
    convertible preferred
    stock                      (100,000)          --             --
   Loans payable to
    stockholders                   --           25,000           --
   Repayment from(Advance to)
    unconsolidated
    subsidiary                2,191,985     (3,724,000)      (538,000)
   Proceeds from sale
    of common stock                --          166,659      2,000,000
   Proceeds from sale
    of Series B convertible
    preferred stock                --             --        2,341,219
   Proceeds from sale
    of Series D convertible
    preferred stock                --             --        1,500,000
   Proceeds from sale
    of Series C convertible
    preferred stock - net          --        2,093,900           --
   Proceeds from sale
    of Series E convertible
    preferred stock                --        6,759,000           --
   Proceeds from sale
    of Series G convertible
    preferred stock           2,000,000           --             --
                            -----------    -----------    -----------

NET CASH PROVIDED BY
 FINANCING ACTIVITIES         3,708,602      5,105,013      5,303,219
                            -----------    -----------    -----------

NET (DECREASE) INCREASE
 IN CASH AND CASH
 EQUIVALENTS                    (41,521)       787,949      1,160,824

CASH AND CASH
 EQUIVALENTS, BEGINNING
 OF YEAR                      2,134,662      1,346,713        185,889
                            -----------    -----------    -----------

CASH AND CASH EQUIVALENTS,
 END OF YEAR                $ 2,093,141    $ 2,134,662    $ 1,346,713
                            ===========    ===========    ===========