July 12, 2002

AdStar to incorporate DynAccSys' Virtual AdTaker into its e-commerce product suite

MARINA DEL REY, Calif. - AdStar (Nasdaq: ADST, ADSTW), a leading software and application service provider for the classified advertising industry, today bolstered its suite of e-commerce products by signing a letter of intent to be the marketing agent for DynAccSys' web-based display ad transaction service. As part of the agreement, AdStar will begin selling to its customers Virtual AdTaker, an Internet browser-based technology that allows advertisers to compose, schedule and pay for display advertisements in print and online publications.

With Virtual AdTaker, AdStar's publishing customers can accept several types of display ads via the web, including in-column ads with photos, obituary, funeral and legal notices, and gallery ads. The gallery ad capability is especially attractive to car dealerships and real estate agencies that can use a combination of photos, text and graphics to showcase their products.

"The addition of Virtual AdTaker to our suite of products creates ultimate flexibility and choice for our customer's advertisers," said Leslie Bernhard, president of AdStar. "Our newspaper customers now have the ability to offer their advertisers self-service options in all classified formats. As the leading provider of online ad transaction services and now as the reseller of Virtual AdTaker, publications can now turn to AdStar as their main source for their online classified ad-transaction technology needs."

Virtual AdTaker features include the ability to create and compile ads online with full text, photos, banners, and logo graphics. The always-on technology extends publication deadlines, eliminates errors through online editing, proofing, and spell checking and provides direct delivery of ads to the newspaper production department via Internet delivery. The entire Virtual AdTaker solution is hosted by DynAccSys, which also minimizes implementation, operation and maintenance costs for both advertisers and publishers.

"Our technology drives revenues for newspapers by putting the power to create, schedule and pay for ads in the hands of the advertisers," said Alan R. Duncan, chief executive officer of DynAccSys. "AdStar has proven its technology and marketing capability in the publishing industry by solidifying contracts and securing loyal customers with many of the leading newspapers in the country. Together, our companies have created the ultimate advertising transaction solution that bridges the gap between the Internet and print, and we are confident that AdStar's customers will see great benefits from the added value that Virtual AdTaker offers."

AdStar's core application service provider model allows its publication customers to quickly turn their online presence into revenue-generating web sites by integrating AdStar's classified ad transaction technology into their sites. With Virtual AdTaker, AdStar will be able to offer its publishing customers the ability to accept all varieties of classified ads through the Web, from text- to graphic-based layouts.

About DynAccSys
DynAccSys designs, builds, operates, and supports customized data management tools - dynamic solutions that solve complex problems in data management, data transmission, and business processes. DynAccSys also offers business process services as a technology-enhanced alternative to customer processing with a focus on the print media, mortgage banking, and accounting industries. The company devises new ways to better business practices through Web solutions that transfer work from inside to outside a company, or through designs that offer breakthrough solutions to regulatory complexities. DynAccSys is based in Silver Spring, Md. For more information, visit www.dynaccsys.com.

About AdStar, Inc.
AdStar (Nasdaq: ADST, ADSTW), based in Marina del Rey, Calif., serves as an application service provider (ASP) for the $20+ billion classified advertising industry. AdStar turns publishers' Web sites into full-service classified ad sales channels for their print and online classified ad sections. Since 1986, AdStar has set the standard for remote ad entry software by giving advertisers the ability to place ads electronically with many of the largest newspapers in the United States. Today, AdStar's infrastructure, through its private label model, powers classified ad sales for more than 20 of the largest newspapers in the United States and the Newspaper Association of America's bonafideclassifieds.com, where ads can be placed in more than 120 newspapers.

Forward-Looking Statements
This press release contains forward-looking statements concerning the business and products of the Company. Actual results may differ from those projected or implied by such forward-looking statements depending on a number of risks and uncertainties, including, but not limited to the following: development, shipment and market acceptance. Other risks inherent in the business of the Company are described in Securities and Exchange Commission filings, including the Company prospectus on Form SB-2. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.