Integrated Business Systems and Services, Inc. Completes $2.8 Million Recapitalization

Swamp Fox

Integrated Business Systems and Services, Inc. Completes $2.8 Million
Recapitalization; Funding Objectives Achieved With Closing of $750,000 in New
Capital

Business Editors/High Tech Writers

COLUMBIA, S.C.--(BUSINESS WIRE)--March 12, 2002--Integrated Business
Systems and Services, Inc. (OTCBB: IBSS), a leading provider of Collaborative
Production Management software, announced today the closing of $750,000 of new
investment in the Company as part of a private placement of convertible
debentures and common stock purchase warrants.
The private placement follows the Company's December 2001 recapitalization
of approximately $2.8 million of convertible debt, comprising substantially all
of the Company's year-end liabilities, excluding trade payables. The
restructuring replaced approximately $2 million of short-term debt and
approximately $200,000 of long-term debt with two-year convertible debentures
and warrants, effectively extending to 2004 the Company's repayment obligation
on the prior debt. Interest on the debt is not payable until 2003.
"The restructuring of almost ninety percent of our outstanding debt has
greatly strengthened our balance sheet and has enhanced our cash flow for the
next two years. With the closing of $750,000 in additional funding, IBSS has
successfully achieved a critical milestone in its overall capital raising
strategy. The investors in the recapitalization share management's excitement
for the tremendous growth opportunities that lie ahead for IBSS. They also
concur in our confidence that IBSS will be able to successfully take advantage
of those growth opportunities," said Dr. George Mendenhall, Chairman and Chief
Executive Officer of IBSS.
Consistent with its success in achieving greater industry visibility and
customer acceptance of its proprietary suite of Synapse software solutions,
IBSS announced last week the establishment of its global reseller relationship
with EDS, a worldwide leader in systems integration services. Included in that
announcement was the commencement of a project-specific teaming agreement under
which EDS and IBSS are to jointly design a solution to address improvements for
tracking and inventory control for a large automaker customer of EDS.

About IBSS

IBSS is a national software provider of quick payback solutions to complex,
industry-specific information problems. The Company's flagship product,
Synapse, is targeted to be the preferred architecture for dynamic, distributed,
real-time software applications. The ease and speed of Synapse installation,
its low maintenance and enormous versatility give Synapse users a true
competitive advantage. The Synapse suite of products includes Synapse for
Manufacturing, designed to maximize flexibility in implementing site-specific
manufacturing solutions at the lowest possible cost and time-to-benefit;
Synapse EAI+ for enterprise modeling and application integration in highly
dynamic environments; and Synapse ASP for flexible, highly scalable ASP
enablement. IBSS has offices in Columbia and Detroit. For more information
about IBSS' technology and services, please call 800-553-1038 or visit
www.ibss.net.

Synapse, Synapse for Manufacturing, Synapse EAI+, and Synapse ASP are
trademarks of IBSS.

Except for the historical information herein, the matters discussed in this
news release include forward-looking statements that may involve a number of
risks and uncertainties. Actual results may vary significantly based on a
number of factors, including, but not limited to, risks in product and
technology development and integration, market acceptance of new products and
continuing product demand, the impact of competitive products and pricing,
changing economic conditions and other risk factors are detailed in the
Company's most recent annual report and its other filings with the Securities
and Exchange Commission.

--30--CG/ch*

CONTACT: Integrated Business Systems and Services, Inc., Columbia
William S. McMaster, 803/736-5595, Ext. 107

KEYWORD: SOUTH CAROLINA MICHIGAN
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS SOFTWARE
SOURCE: Integrated Business Systems and Services, Inc.

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