ADSTW Adstar Wts 12/16/2004 (MM)

AdStar Expands Product Suite With Innovectra Marketing Agreement AdStar to Offer ASP Version of Leading Yellow Pages Software to Newspapers MARINA DEL REY, Calif., June 17 /PRNewswire-FirstCall/ -- AdStar, Inc. (NASDAQ:ADSTNASDAQ:ADSTW), a leading applications service provider of e-commerce transaction technology for the advertising and publishing industries, today announced that it has signed a marketing agreement with Innovectra Corporation, a leading software developer and service provider for the Yellow Pages and catalog industries. Under the terms of the agreement, AdStar will incorporate and market Innovectra's products as part of its product suite and has been granted exclusive rights to sell ASP versions of Innovectra's technology within the newspaper industry. "Innovectra has built a strong reputation in the Yellow Pages directories market by making it easy to publish print ads and information online while preserving brand equity and print layout, thus enhancing content and sales opportunities," stated Leslie Bernhard, president and chief executive officer of AdStar, Inc. "Among Innovectra's products and services that satisfy direct needs within the publishing industry are ActivNews(TM), ActivAds(TM), eBill(TM) and eTearsheets(TM). We believe that many of our newspaper partners can benefit from the capabilities and added value of Innovectra's product offerings. By delivering these products in an ASP format, we can continue to provide our customers with cost-effective solutions and deliver a level of service unmatched by our competitors." Innovectra's products include: * ActivNews -- allows newspaper publishers to migrate their brand to the Web in a manner that is consistent with the look and layout of their print publications; * eBill -- combines and delivers an advertiser's tear sheet and invoice online; * eTearsheets -- places publishers' entire tear sheet and invoicing operations online; * ActivAds -- allows publishers to offer enhanced Internet features such as streaming video, voice over IP calling, electronic catalogs, mapping, etc.; and * ActivDirectory(TM) -- produces Yellow Pages on the Web, or in CD-ROM format, duplicating the look and layout of the print edition with full search, indexing and hypertext functionality. "AdStar has literally cornered the market on remotely managed and hosted transaction technologies for the newspaper industry," commented Christopher Scotton, president and chief executive officer of Innovectra Corporation. "While we continue to focus our efforts on the directories market, AdStar will market and sell our products to newspaper publishers. We are expanding AdStar's offerings by bundling Innovectra's existing products with AdStar's current suite and working together to develop a variety of new products in the application service provider format. These enhanced products and services will allow publishers to integrate print and online operations without significant investments in new hardware, software and IT management. We view this as the beginning of a long-term partnership that will deliver innovative solutions to the newspaper industry." AdStar has established relationships with more than 100 newspapers across the country. The company's suite of e-commerce services includes EdgCapture, an automated payment processing solution, and remote and online ad-transaction services that allow publishers to integrate print and online classified advertising initiatives. AdStar's XML Gateway allows newspapers to "reverse publish" existing print ad content and offer a variety of online and print classified advertising packages and "up-sell" opportunities. About Innovectra Corporation Innovectra Corporation is a leading software developer in the Yellow Pages and newspaper markets. Its products include ActivDirectory, ActivNews, ActivAds, eBill and eTearsheets. The company's software can publish Yellow Pages directories, newspapers and magazines on-line in the exact look and layout of the print product, but with fully searchable text and hotlink capabilities. Innovectra's ActivAds software brings a new level of interactivity to on-line advertising, and its eBill software automates ad billing and tear page functions. The company is headquartered in McLean, Virginia. For additional information on Innovectra, visit http://www.innovectra.com/. About AdStar, Inc. AdStar, Inc. (NASDAQ:ADSTNASDAQ:ADSTW) is the leading provider of e-commerce transaction software and services for the advertising and publishing industries. AdStar's proprietary suite of e-commerce services includes remote ad entry software and web-based ad transaction services, as well as payment processing and content processing solutions that are provided through its Edgil Associates subsidiary, the industry's largest supplier of automated payment processing services. AdStar's ad transaction infrastructure powers classified ad sales for more than 40 of the largest newspapers in the United States, the Newspaper Association of America's bonafideclassifieds.com, CareerBuilder, and a growing number of other online and print media companies. EdgCapture, Edgil's automated payment process solution, is currently employed by call centers at more than 100 of the nation's leading newspaper and magazines. AdStar is headquartered in Marina del Rey, Calif., and its Edgil office is located in North Chelmsford, Mass. For additional information on AdStar, Inc., visit http://www.adstar.com/. Forward Looking Statements This release contains forward-looking statements concerning the business and products of the company. Actual results may differ from those projected or implied by such forward-looking statements depending on a number of risks and uncertainties including, but not limited to, the following: historical business has already matured, new online business is unproven and may not generate expected revenues, and Internet security risks. Other risks inherent in the business of the company are described in Securities and Exchange Commission filings, including the company's annual report on Form 10-KSB. The company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release. AdStar Company Contact: Jeff Baudo, 310-577-8255, AdStar Media Contact: Kevin Wilson, 513-885-5520, AdStar Broker Contact: RJ Falkner & Company, Inc., 800-377-9893, DATASOURCE: AdStar, Inc. CONTACT: Jeff Baudo of AdStar, Inc., +1-310-577-8255, ; or Media, Kevin Wilson, +1-513-885-5520, ; or RJ Falkner & Company, Inc., +1-800-377-9893, , both for AdStar, Inc. Web site: http://www.innovectra.com/ Web site: http://www.adstar.com/

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