SEATTLE--(BUSINESS WIRE)--May 24, 1999-- Strength of Web-Development Market and Operational Restructuring Initiatives Result in Higher Revenue Levels and a Return to Profitability fine.com International Corp. (Nasdaq:FDOT) today announced its fiscal year 2000 first quarter results, for the period ending April 30, 1999. For the quarter, the Company reported revenues of $1,875,000, an increase of 41% from the prior years' first quarter revenues of $1,332,000. Sequentially, revenues grew 24% from $1,516,000 in the fourth quarter of fiscal year 1999. The Company reported net earnings for the quarter of $16,000 or $.01 per share. This compares to a loss of $368,000 or $.14 per share in the first quarter of the prior year and a loss of $825,000 or $.31 per share in the sequential fourth quarter of 1999. These results represent a return to profitability after cumulative losses of $3.6 million over the last four quarters. "We are very pleased with these first quarter results," stated Dan Fine, CEO of fine.com. "During the quarter we worked on Web-based interactive projects for Amway, Marriott International, The Nasdaq-Amex Stock Market, Microsoft and Intel among others. Many companies are realizing the benefits and opportunities of expanding their operating models into e-commerce and Web-based business solutions." Commenting on the quarterly results, Tim Carroll, Executive Vice President of fine.com added, "Late in fiscal year 1999, the Company implemented an operational restructuring and we are encouraged by its early results. The restructuring focused on growing sales, adding strategic consulting services to our product offering, increasing internal productivity and lowering our overhead cost structure." On May 17, 1999, fine.com entered into a definitive agreement with ARIS Corporation (Nasdaq:ARSC), a leading provider of international IT consulting, training and software, for the acquisition by ARIS of fine.com. The transaction is valued at approximately $12.25 million, which is to be paid in either ARIS stock or a combination of stock and cash. The transaction is expected to close in the third calendar quarter of 1999. The acquisition is expected to expand ARIS' capability in delivering Web-based solutions including strategic Web consulting, creative design and technical development. fine.com and ARIS have also entered into an agreement, which allows fine.com and ARIS to jointly market, sell and deliver e-business projects to existing and potential customers. About fine.com International fine.com International Corp. is a leading provider of integrated e-commerce and interactive response communication services that combine the Web with communications and business process automation solutions. fine.com clients include leading Global 1000 companies and other market leaders. For more information about fine.com, please visit www.fine.com. This news release contains management's analysis of the financial results of the Company and contains forward-looking statements about potential future financial performance of the Company. These forward-looking statements are subject to a number of risks and uncertainties that would cause results of operations to differ materially from management's expectations. Such factors include the uncertain growth of electronic commerce, the substantial competition faced by the Company, the risks inherent in expansion of a business, the ability of the Company to increase productivity and decrease overhead, and other factors. For more information about important factors that bear on the Company's operations and prospects, the reader is referred to the risk factors set forth in the Company's prospectus dated August 11, 1997, and its Annual Report on Form 10 KSB for fiscal year ended January 31, 1999, as filed with the Securities and Exchange Commission (SEC), as well as factors discussed in the Company's quarterly reports on Form 10-QSB. The SEC maintains a Web site that contains registration statements, reports and other information regarding registrants (including fine.com International Corp.) that file electronically with the SEC. The address of the SEC's Web site is www.sec.gov. Financial Table Follows fine.com International Corp. Consolidated Statements of Income Three Months Ended April 30, 1999 1998 Gross revenue $ 1,875,011 $ 1,331,793 Direct salaries and costs 855,006 952,478 ----------------- ----------------- Gross profit 1,020,005 379,315 Selling, general and administrative expenses 1,004,246 962,345 ----------------- ----------------- Operating income (loss) 15,759 (583,030) Other income (expense) Interest income (expense) (235) 94,602 ----------------- ----------------- Income (loss) before income taxes 15,524 (488,428) Provision for (benefit from) income taxes - (120,000) ----------------- ----------------- Net income (loss) $ 15,524 $(368,428) ================= ================= Basic and diluted net income (loss) per share $ 0.01 $ (0.14) ================= =================  