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Avalon Group, Inc. Unveils New Interactive Kiosk With Launch of the X-po! Pro

 CEDAR RAPIDS, Iowa--(BUSINESS WIRE)--June 24, 1998-- Avalon Group, Inc. 
today announced its new line of Internet-ready, interactive multimedia kiosks 
being launched under the brand name X-po!(TM) . The kiosk is a state-of-the-art 
touchscreen terminal that uses standard personal computer architecture and 
Internet communications/network protocols. This product provides a direct link 
between a consumer and specialized information, or encourages the intelligent 
purchase of products and services by the consumer.

     X-po! is being marketed to distributors, systems integrators and to 
customers across a variety of vertical markets. Applications include: airline 
ticketing in airports; dissemination of health information in physician and 
hospital clinics; member services in fitness centers and gyms; parts catalogs 
and automotive retail stores; product catalogs in shopping malls; and other 
high-traffic or targeted retail locations.

     Initial kiosk units already have been sold and discussions with potential 
customers have been underway for several months. Many customers see the kiosks 
as a way to increase sales of products and services and/or reduce the amount of 
time that their own employees need to spend with customers for routine 
inquiries or transactions.

     X-po! kiosks are designed as an all-in-one unit with the computer and the 
flatscreen monitor housed in a single, portable casing. X-po! terminals provide 
a competitive advantage by offering a smaller, less obtrusive footprint that is 
ideal for desktop or wall mounting in locations where space is at a premium 
such as hotels, physician clinics, gas stations, retail stores, pharmacies, 
etc. The modular system design allows for expansion through the addition of 
peripheral devices and display enclosures, if the units are placed in larger 
environments where space is not a concern and higher visibility is important to 
attract attention.

     X-po! kiosks are capable of displaying full-motion, full-screen video and 
stereo sound with enough storage to contain three full-length digitized movies 
or millions of pages of text and graphics. Since the units are Internet-ready 
and carry a wide variety of built-in network capabilities, they offer added 
flexibility over other, similar units on the market today.

     Other advantages offered by X-po! include proprietary hardware and 
software technological advancements and aesthetic enhancements such as a 
patented ceramic composite housing, which enables the Company to offer 
customized shapes, colors and finishes at a significantly lower cost than 
traditional plastic or metal housings.

     The company has launched the product range at a cost-competitive price, 
linked with a subsidized business model that allows customers for the kiosks to 
participate in revenue sharing programs.

     "This Internet-ready, interactive kiosk is the right product at exactly 
the right time for today's business marketplace," says Ron Green, Avalon Group, 
Inc. president & CEO. "The launch of the X-po! product line permits Avalon to 
begin a determined sales and marketing effort over the medium and long term to 
build revenues for the company.       

     "Although the kiosk market in general has had a varied history over the 
past few years, newer technologies, improved communications and lower price 
points are fueling a renaissance in kiosk adoption by a wide variety of 
customers.       

     "We believe that the much-reported boom in the kiosk market is large 
enough, and durable enough, to support a number of kiosk vendors. Avalon has 
positioned itself to be one of the first companies to combine all of these 
features and customer-focused needs in one product line. Even a market share of 
less than 1 percent of the estimated North American kiosk shipments over the 
next few years will allow the Company to achieve its business forecasts."

     Avalon Group, Inc. has recently reorganized its resources to be able to 
concentrate on the introduction of the X-po! product line. Originally intended 
for the healthcare market, the X-po! terminals received so much attention from 
developers and potential customers in other markets that the Company decided to 
exploit this interest by placing more attention on selling kiosks, content and 
related sponsorship opportunities in a more generic form. The Company is 
currently developing relationships with a number of large strategic partners to 
complement its own sales and technology teams. This shift in emphasis places 
Avalon Group, Inc. more in the role of a technology company than its previous 
direction as a healthcare publishing company. This significantly broadens the 
market opportunity and revenue potential for the Company.

Stock symbol: OTC Bulletin Board(R): AVAL

X-po! is a trademark of Avalon Group, Inc.






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