According to Peter Lytle, CEO, ``This strategy will enable U-Ship to provide complete, same day shipping and delivery service for consumers and businesses, while augmenting the firm's proprietary automated shipping technology.'' He stated that U-Ship has entered into negotiations with five Twin Cities companies, with a possible acquisition as early as August/September.

``The acquisition strategy will allow U-Ship to utilize its advanced shipping technology to give our company a competitive advantage in this current low-tech market environment. We have seen courier business margins as high as 28% in certain segments. We believe they can become more lucrative when we combine technology solutions to manage these businesses more effectively. In addition, acquisitions will bring experience, logistics equipment and an existing customer base,'' said Lytle.

U-Ship is a manufacturer and operator of automated shipping centers (ASC's) for shipping packages and letters through a high-tech user-interactive kiosk. ``Our technology now allows customers to ship packages via UPS, electronically and hassle-free,'' says Lytle. ``Our next step is to allow customers to ship the same day via our courier service just as conveniently.''

Currently U-Ship has over 321 kiosks in 38 states. The company has spent millions developing and testing advanced delivery and management software and hardware technology. Lytle says that U-Ship is ready to begin business expansion on the basis of these technology assets.

``Businesses and consumers will now have the option of an automated courier system, in addition to the traditional courier and major carrier delivery options that we will provide,'' Lytle said. ``We envision that the customer can now drop the package into our kiosk, walk away and we will do the rest, 24 hours a day.''

The company plans to place up to two hundred automated shipping kiosks throughout the Minneapolis and St. Paul Metro area this fall to support its courier and shipping program. ``As this strategy proves itself in our core market, the company will pursue other geographic markets,'' Lytle said.

Some of the information in this release is forward-looking and subject to certain risks as described in the company's filings with the Securities and Exchange Commission, including the company's Form 10-K for fiscal year ended June 30, 1997.

     U-Ship, Inc.
     Peter Lytle, 612/941-4080 Ext. 113
     or
     Knight Public Relations
     Joan Knight, 612/593-1508

Newsbit furnished by:

A: NetShift Software Ltd.
A: Hughenden Yard, Marlborough, Wilts,SN8 1LT, UK
T: +44 (0)1672 511 094
F: +44 (0)1672 511 078
E: [email protected]
W: www.netshift.com

Thanks Tim!