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CustomTracks Corporation to Develop Internet Transaction Payment System

DALLAS, Feb. 1 /PRNewswire/ -- CustomTracks Corporation (Nasdaq: CUST) announced today that its board of directors has approved a significant investment in a new business that will focus on charging and collecting transaction payments over the Internet.

David P. Cook, chairman and chief executive officer of the company, stated, "Our company has been exploring various Internet-related business opportunities, as previously announced, but the system design for this transaction payment business came as a by-product of our ongoing efforts to obtain music content rights from the major record companies. We expect this system to be operational by the third quarter of 1999."

Mr. Cook added: "Our previously announced plan to enter the customized compact disc business has been impacted by two recent music industry developments. First, the Secure Digital Music Initiative, an effort sponsored by the major music record companies to establish standards for the digital distribution of protected music via the Internet and other means, has delayed our efforts to obtain music content rights. Secondly, the availability of the handheld MP3 player will likely impact customized compact disc pricing. We will evaluate our customized compact disc strategy further as these developments evolve."

CustomTracks Corporation is developing an Internet transaction payment system and is exploring additional Internet-related businesses, including selling customized compact discs over the Internet. The company's new Internet transaction payment system is expected to be operational by the third quarter of 1999. CustomTracks' headquarters is in Dallas. For further information about CustomTracks, visit the company's investor Web site at www.stockprofiles.com/cust or contact investor relations at 972-702-7057.

"Safe Harbor Statement"

The following is a "Safe Harbor Statement," made under the Private Securities Litigation Reform Act of 1995: The comments of David P. Cook include forward-looking statements. These statements involve management assumptions, risks, and uncertainties, including, but not limited to, the following: (1) the ability of the company to successfully develop the transaction payment system and to marshal the resources to complete the development of the transaction payment system in a timely fashion; and (2) the ability of the company to gain market acceptance for its transaction payment system. Consequently, if such management assumptions prove to be incorrect or such risks or uncertainties materialize, the company's actual results could differ materially from the results, if any, forecast in the forward-looking statements.