William P. O�Reilly, Eltrax Chairman, stated, �We have spent the last several months since the closing of the Sulcus merger evaluating our strategy and came to the conclusion that we needed to move more aggressively and focus our talents in those areas where the greatest
opportunity exists for realizing value. These opportunities are best represented by the Applications Services market and the expanded delivery of quality network and application services to small and medium sized businesses, where we are experiencing explosive growth.�

The Company will be managed as two distinct operating groups: Technology Services Group and the Hospitality Services Group. The Technology Services Group will utilize Eltrax�s Plan, Build, Run Methodology to provide a straightforward approach that clearly articulates the value brought by Eltrax to their technology issues.

The Technology Services Group will consist of three operating units:

• Technology Solutions will provide strategic assessment, application and network design, custom application development and integration, network management, support and maintenance.
• Customer Care will continue to provide 7X24 help desk, as well as training and installation services to Eltrax operating units. In addition, these same services will now be made available on an outsourcing basis thereby leveraging further this important asset.
• Application Services will provide outsourcing and remote delivery of applications including network and application management.

The Technology Services Group, which is already enjoying a 40% annual revenue growth rate, will expand into Chicago, Los Angeles, Denver and Boston while also adding a second Network Operation Center in Atlanta during first quarter 2000. When coupled with our new
initiative in the ASP space, we are very excited about the growth of all operating groups at Eltrax.

The Hospitality Services Group will provide leading edge software, training and installation services to the hospitality industry. This group will consist of the �Squirrel� Point-of-Sale
(POS) system, Eltrax�s on-site Hotel Property Management System (PMS) (Medallion) and the Senercomm energy management system. All of the Company�s hospitality offerings are leaders in their respective fields and are expected to continue their leadership in these markets.�

Mr. O�Reilly continued, �The restructuring of our operations will result in a better allocation of management focus. Of the approximate $130 million in forecasted 1999 revenue, $70 million will come from the Technology Services component of our business and $60 million from the Hospitality component. By allocating resources along these operating lines, we believe that Eltrax is better positioned to realize value for our shareholders. Retention of a major investment
banking firm to help the company evaluate all the options available to further it�s strategy is also consistent with management�s commitment to realizing shareholder value. We expect to finalize an agreement with this firm by the end of October.�

Eltrax provides Internet and network-based applications and services to enterprises worldwide. Eltrax is a global leader in the design, development and management of technology solutions used to improve the quality and availability of business-critical information and data.