For the past four years, U-Ship's core business has been the development, manufacture and operation of automated shipping centers for shipping packages and letters through high-tech use-interactive kiosks. The company has also produced and marketed computerized kiosks for other business, such as electronic advertising.

``The success of these efforts, '' said Lytle, ``provides a unique opportunity for the company to broaden our OEM (original equipment manufacturer) base and leverage our patents and proprietary software and hardware systems to other markets.''

The new division will do business under the name The Intelligent Kiosk Company and will be headed by Greg Vannelli. Vannelli was the former President of Super Sharp, a company that sold and managed skate sharpening kiosks throughout the United States.

The Intelligent Kiosk Company is currently in negotiations with several firms to provide up to 100 kiosks this year based on the company's existing designs and patents. The division also plans to sell supportive services, customer service, technical support, credit card management and ``back office'' management.

Lytle stated that, ``As the company has concentrated on its core business, it has gained an expertise in the development and manufacture of intelligent kiosks. These have been test marketed to other businesses on a limited basis since the mid 90's, with encouraging results. We continue to refine and diversify our technology, and now feel the time is right to manufacture these systems on an OEM basis for appropriate businesses with developed markets. By doing so, we feel we can both leverage our capabilities and spread our overhead over various markets.''

Lytle believes that intelligent kiosks are a big business, with tremendous growth potential over the next five to seven years. The market for job-related kiosk growth, fueled by low employment numbers and the consumers' need to have more information and service exemplifies the trend. The growth in the internet and computer penetration in the home has been responsible for much of the increased usage of intelligent kiosks.

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, l997.

     U-Ship, Inc., Minneapolis
     Media Contact:
     Peter Lytle, Chairman and, CEO 6
     612 941-4080, Extension no.113
     or
     Joan Knight, Knight Public Relations, 612/593-1508

Newsbit furnished by:

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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!