For the fourth quarter ended December 31, 2001 the Company reported net sales of $583,462 as compared to $2,533,473 for the quarter ended December 31, 2000. While this represented a decline in sales of almost 77%, it should be noted that for the same period last year the company had a new product release, QuickVerse 7, as compared to no significant new product releases during fourth quarter of 2001. Net loss declined for the quarter from a net of ($1,874,801) in 2000 to a loss of ($1,245,985) in the fourth quarter of 2001, a 33% improvement.

Sales for the fiscal year ended December 31, 2001 decreased 61% to $2,755,658 from $7,154,964 for the year ended December 2000. Net loss increased from ($2,354,139) in the year ended December 2000 to a loss of ($7,600,353) in the year ended 2001. While this represents a significant increase, it should be noted that approximately $3,251,000 results from non-cash charges against net income.

Commenting on the above results, Steven Malone, Chairman and President of FindEx said, “The fiscal year 2001 was an incredibly difficult year for FindEx. Our direct marketing activities that constitute a major percentage of our company’s revenues were in effect shut down due to a dispute we had with The Learning Company. Numerous commitments for funding our company that fell through coupled with a dispute that we have with one of our major content providers forced us to cease shipping one of our flagship titles in the fourth quarter. This has cost us immeasurably in our ability to capitalize on the holiday season, ordinarily our best selling period of the year.

“Once it became apparent to us very late in 2001 that no outside funding was likely to materialize in the near-term, we implemented a strategy to turn the company around strictly on the basis of cost reductions and revenue development. Towards this end, we first reduced our staff by approximately 50%, closed remote offices, cut expenditures wherever possible and cancelled all distribution contracts that didn’t meet strict profit criteria. These steps are expected to result in annual savings to FindEx of over $750,000. Second, we focused on developing our direct-marketing infrastructure. Although we’ve started small in this regard, our direct-marketing activities have already allowed us to slowly redevelop our cash flow. This, in turn, provides the necessary support for us to rebuild our product development team and introduce new products again in 2002.” Malone added, “We also have a tentative settlement in place with The Learning Company and are hopeful that we can resolve our issues with our content providers in the near future. All things considered, we believe the company is getting back on track and is finally heading towards a meaningful turn-around.”

In discussing the operating results of the Company, Kirk Rowland, Chief Financial Officer for FindEx, stated that “While the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the twelve months ended December 31, 2001 was a loss of $4,852,000, the loss included several non-cash expenses related to Corporate and Investor Services and a large bad debt provision. The charges totaled $3,251,000 and overshadow the fact that the company had negative cash flow from operations of only $66,000 for the year. The cost reductions and shift in marketing focus in late 2001 prevented the negative cash flow from being worse and have put us in position to restore profitability, cash flow, and repair relationships with our customers, vendors and content providers.”

FindEx is a developer, publisher, distributor and supplier of “inspirational” and faith-based, off-the-shelf software products to individuals and religious and other spiritual organizations including schools, churches and other faith-based ministries.

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In addition to the historical financial information contained herein, this release contains certain forward-looking statements. Forward-looking statements in this press release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations and involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. A number of factors, including those identified below, could adversely affect the Company’s ability to obtain these results: the Company is experiencing and may continue to experience reduced revenues due to delays in the introduction and distribution of its products, the Company is under-capitalized and requires additional equity investment, the loss of key executives could harm our business, the Company has a limited operating history, product returns that exceed anticipated reserves could result in worse than expected operating results, the failure of the Company to obtain CD-rom manufacturing and packaging services on a timely basis could materially harm the business, the ability to consummate suitable acquisitions, the ability to effectively integrate acquisitions or implement new production programs, economic factors which affect the Company’s customers, the manufacturing industry, or the economy in general and changes in government regulations. Certain of these risks are described in the Company’s Form 10-Q for the quarter ended September 30, 2001.