ADSTW Adstar Wts 12/16/2004 (MM)

AdStar to Power E-Commerce Services for MediaNews Group Newspapers America's Seventh-Largest Newspaper Company Partners With AdStar to Optimize Print and Online Capabilities MARINA DEL REY, Calif., March 14 /PRNewswire-FirstCall/ -- AdStar, Inc. (NASDAQ:ADSTNASDAQ:ADSTW) today announced that MediaNews Group Interactive (MNGi) has selected AdStar's e-commerce suite to power Web-based ad sales for all of the company's newspapers. Beginning in March 2005, AdStar will work with MNGi on a 12-week collaborative implementation and rapid adoption program to enhance MNGi's newspaper properties with AdStar's comprehensive suite of e-commerce services. MNGi is the new media division of MediaNews Group, which is one of the largest newspaper companies in the United States with annual revenues in excess of $1 billion. Utilizing AdStar's technology, MNGi's newspapers will allow advertisers to create, schedule and pay for both print and online classified ads over the Internet, while accessing a variety of new e-commerce and value-added services, including payment processing through EdgCapture and enhanced transaction-enabled classified advertising services from CityXpress MarketPlace. MNGi properties include the online editions of the Connecticut Post, The Denver Post, Los Angeles Daily News, The Oakland Tribune, and The Salt Lake Tribune. "We selected AdStar because of its extensive e-commerce platform and its reputation for outstanding customer support," stated Eric Grilly, president and chief executive officer (CEO) of MNGi. "AdStar provides a best-in-class, web-based ad sales application, which is critical to the revenue goals of our newspapers. While we will benefit greatly from AdStar's behind-the-scenes technology, we will retain control over the 'look and feel' of our newspapers' online presence. This partnership also allows our classified advertisers to access CityXpress Marketplace and expedite payments using EdgCapture's payment processing services. AdStar's technology also allows us to integrate with a variety of XML-based applications we may use as we continue to enrich our publishers' offerings over the Internet." "AdStar has also committed to an accelerated implementation program for our newspapers, which will help us to quickly optimize the performance of our newspaper properties," added Grilly. "This corporate-wide implementation by MediaNews Group represents one of the largest contracts in our company's history, and is a 'first' for AdStar and for the newspaper industry," commented Leslie Bernhard, president and CEO of AdStar, Inc. "The adoption of our entire platform, including our XML Gateway and e-commerce-enabling technologies, will allow us to more easily integrate CityXpress Marketplace and other complex components." AdStar's extendable e-commerce platform, XML Gateway, integrates the company's Web-based classified ad transaction technology, reverse publishing and workflow management systems, EdgCapture payment processing software, and a variety of other API-based third-party Web applications, including online auctions and event components. "Publishers have recognized that their online presence represents more than an extension of their newspaper production systems," Bernhard continued. "MNGi reached out to us because we can provide the entire platform and suite of services necessary to maximize the productivity of the Internet. Our ability to offer payment processing, while integrating with third-party auction tools and 'click-and-buy' options, has broadened our appeal to newspapers and positioned us as an even larger e-commerce player. Additionally, as publishers derive more revenue from the Internet, the requirements for accountability increase, and we will soon be able to help our customers meet these new accounting requirements by providing an SAS-70, Sarbanes-Oxley-compliant environment." About MediaNews Group MediaNews Group, Inc. is the nation's seventh largest newspaper company, with headquarters in Denver, CO. MediaNews Group and its affiliated companies publish 50 daily newspapers and 121 non-daily publications in 12 states with daily and Sunday circulation of approximately 2.1 million and 2.4 million, respectively. In addition, MediaNews Group owns a CBS affiliate in Anchorage, Alaska and four radio stations in Texas. MediaNews Group maintains 74 Web sites for its daily newspapers and an umbrella site, newschoice.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, MNGi Company Contact: Cheryl O'Hearn, 303-563-6391 co' DATASOURCE: AdStar, Inc. CONTACT: Jeff Baudo, +1-310-577-8255, , or Media, Kevin Wilson, +1-513-885-5520, , both of AdStar, Inc.; or Cheryl O'Hearn of MNGi, +1-303-563-6391, co' Web site: http://www.newschoice.com/ Web site: http://www.adstar.com/

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