The Right Information on Time Comes with Security, Storage
Management, and the Most Advanced XML Java technology in the Upgraded
Release of DataChannel RIO

Bellevue, WA - January 18, 1999 - DataChannel, Inc., the leader in
two-way corporate portal infrastructure, today announced the
immediate availability of the 3.2 version of DataChannel RIO, the
company's flagship product. DataChannel RIO is an XML-enabled
solution designed to build a dynamic two-way corporate portal with
input (i.e. publishing) and output (i.e. retrieval) capabilities that
make Intranets and Extranets easier to use, integrate, manage, and
support. With this release, new features and functionality have been
added to ensure smoother deployment in a secure environment, help
better manage documents and integrate data. This newest release also
represents the first implementation of the XML Java parser
co-developed by Microsoft and DataChannel in a commercial product.

The 45-day trial can be downloaded at http://www.datachannel.com/download

"DataChannel RIO 3.2 was upgraded with DataChannel customers needs in
mind. It allows for the easier management of corporate data," said
David Pool, CEO of DataChannel. "DataChannel's goal is to empower
corporations to prepare for the future by providing a standards-based
XML-enabled strategy/solution to 'Webify' their architecture and
distribute information based on their knowledge needs."

The need for a corporate portal Corporations today are inundated with
a wealth of information from different content sources: from legacy
systems, to a variety of different databases systems, to multiple
applications. In an August 28, 1998 Gartner Group Research Note
titled "Portals: Not Just for the Internet," analyst Gene Phifer
wrote, "The sheer volume of information contained on intranet Web
sites is beginning to overwhelm enterprises. An Intranet portal will
provide structure and organization to that data, turning data into
information and information into knowledge. Providing an overlay
structure relevant to the enterprise will be more effective than
performing a traditional search to find information on the Internet."
Even further, DataChannel sees the corporate portal as being the
starting point into a company's Intranet/Extranet and acts as an
information hub aggregating links that connect users of the portal to
relevant information sources. DataChannel RIO provides a personalized
corporate portal that utilizes XML to organize and distribute
customized information to its users. Using DataChannel RIO's Save to
the Web(tm) technology, users can publish documents directly to a Web
server without using the corporate Webmaster as an intermediary.
Corporate data can be saved to channels and folders to be published
and distributed with instant notification to the appropriate users in
an efficient manner.

"Koch Industries has been a customer of DataChannel's since the 1.0
version of their flagship product. Their continual upgrade and
enhancement of the product shows me that they are listening to Koch's
mission-critical needs," said Dave Fletcher, Business Systems
Analyst, Petroleum Group, Koch Industries. Koch Industries is the
second largest privately held company in the US and has offered their
commodities traders the flexibility and ease to re-aggregate and
combine data, manage risks, and provide market data analysis using
DataChannel RIO.

New Enhancements in DataChannel RIO 3.2 include:

* Extensible Security Architecture

DataChannel RIO 3.2 provides an open security architecture that
supports standard directory services; an API to access proprietary
directory services; and integration of SSL support. It ensures that
the right people see private information and that their user sessions
are encrypted to protect data transfer. Additionally, DataChannel RIO
can utilize existing security technologies such X-509 certificates
and ADSI to make certificate-authenticated login and secure user
sessions possible by leveraging existing security systems. As a
result of this new security feature, businesses will save
considerable development time and money and greatly reduce support
costs in general.

* Extended Channel and Folder Capabilities

Publishers can now assign URLs to Channels and Folders just as with
items in previous versions of DataChannel RIO. This functionality
provides greater flexibility for organizing information and
simplifying navigation for end-users.

* Enhanced Content Management

To help manage and preserve valuable server storage space, content
owners can easily remove files that they have published from the
storage locations they utilize with the upgraded Save to the Web
capabilities. When the original publisher deletes a specific Channel,
Folder, or Item, the associated documents or URLs are automatically
removed from their storage location to free up needed server storage
space.

* Includes the most advanced XML Java technology

The latest release of the XML Java parser that has been co-developed
by DataChannel and Microsoft extends XML processing capabilities to
allow developers to access and manipulate data moved between
applications across different platforms such as Unix, Linux and NT.
It also allows for XML to be viewed through its XSL capabilities. The
parser also allows corporations to prepare for future applications
such as Office 2000.

DataChannel RIO core functionality includes: centralized
administration and access control, instant content publishing,
personalized distribution and notification.

Pricing & Availability

The 3.2 version of DataChannel RIO is immediately available by
calling sales at 425.462.1999. A free 45-day trial download or CD can
be requested by visiting www.datachannel.com\download or by calling
sales at 425.462.1999. Pricing starts at $9, 500 for the DataChannel
RIO server for Windows NT and $14,500 for DataChannel RIO for UNIX.
Pricing varies according to the number of desktop supported and
quantities purchased. Technical support is provided via telephone at
425. 974.4151, or via email at support@datachannel.com.

About DataChannel, Inc.

DataChannel, Inc., based in Bellevue, Wash., is the leader in two-way
corporate portal infrastructure for Intranets and Extranets making
them easier to integrate, manage and support. Founded in 1996,
DataChannel offers products and services designed to utilize
extensible mark-up language (XML). . DataChannel provides a framework
for information interchangeability so that any application that can
read XML can participate in global computing. DataChannel's flagship
product, DataChannel RIO, simplifies the process of delivering
critical information to the right people at the right time through
the instant distribution of organized content including external
newsfeeds such as NewsEdge; search engines such as Yahoo!, Excite
[Nasdaq: XCIT], InfoSeek [Nasdaq: SEEK], and Lycos [Nasdaq: LCOS];
relational databases from companies such as Informix Software
[Nasdaq: IFMX], Sybase [Nasdaq: SYBS], and Oracle [Nasdaq: ORCL];
Enterprise applications, such as SAP, PeopleSoft [Nasdaq: PSFT], and
Baan [Nasdaq: BAANF]; and enterprise corporate data from companies
such as Wall Data [Nasdaq: WALL] and IBM (NYSE: IBM] - all within a
customizable employee desktop environment.

For more information contact:
Sunny Lauritzen
DataChannel Inc.
Tel. (425) 974.4109
Fax (425) 637-1192
sunny@datachannel.com