SPI Technologies Inc. Wins New US General Conversion Contract

July 16, 1999 PSE CIRCULAR FOR BROKERS NO. 1769-99 NEWS RELEASE SPI Technologies Inc . Wins New US General Conversion Contract Listed company SPI Technologies Inc. (Philippine Stock Exchange, ticker symbol "SPI"), a leading exporter of information technology services, announced today that it was recently awarded a $1.8 million data conversion contract by the American Theological Library Association (ATLA), through SPI's wholly-owned US subsidiary, Pacific Data Conversion Corporation (PDCC). ATLA is an international not-for-profit organization that provides quality library and information services in support of teaching, learning, and research in theology, religion, and related disciplines. The latest ATLA initiative called ATLA Serials: Fifty Years of Fifty Journals (ATLAS) is funded primarily by the Lilly Endowment. According to ATLA, the project is designed to provide colleges, universities, theological schools, and individual scholars with the emerging electronic resources available in other disciplines, but currently lacking in the discipline of theology. SPI's contract is the initial part of the client's overall program to convert their collection of journals into an image and Extensible Markup Language (XML) full text automated version. In addition, the journals will be linked to the comprehensive index of more than 1,000,000 records in the ATLA Religion Database and made accessible for classroom teaching and scholarly research through the World Wide Web and on CD/DVD-ROM. According to PDCC's Vice President for sales and Marketing/General Manager, Iris Hanney, "This latest win in the US General Conversion arena validates our belief that SPI's general conversion business line will continue to be a major growth driver for the Company going forward." SPI's President and CEO, Ernest Cu added, "Our overseas marketing offices are building a strong pipeline for SPI's general conversion business, largely due to the increasing global demand for structured data. The Internet in particular, is fueling the need for Web-enabled services that support information retrieval." Mr. Cu further added, "This new contract reinforces our expectation that, after posting a small loss in the second quarter, we will experience a gradual recovery to profitability in the third quarter, and further significant improvement in the fourth quarter. Our prospects for next year and beyond are very good." SPI provides information technology services including (1) conversion of news, professional and technical information into electronic form for major Internet and online content providers, (2) conversion of legacy document collections into a standardized electronic form for use on corporate intranets or networks, (3) conversion of evidence related documents into a searchable CD-ROM format for corporations involved in major litigation, (4) electronic mapping and database building for utilities, and (5) software services, SPI is an ISO 9002 certified exporter whose clients are located largely in North American and Europe. aisadc Authenticated by: (SGD.) ERNEST L. CU President & CEO