New York, NY, April 26, 1999 -- SmallCaps Online LLC announced today that the stocks currently under coverage are up an average of 91% on a time-weighted average basis, in the six months since launching its research division on October 14, 1998 and ending April 14, 1999. SmallCaps Online provides all of its research at its website at www.SmallCapsOnline.com.

Steven H. Rouhandeh, Chairman of SmallCaps Online stated, "We are extremely pleased with the results of our recommendations over the past six months. We continue to believe that there are many undervalued small-cap companies whose stories are not being heard. By using the Internet as our primary method of distribution, we are providing one of the first mechanisms by which individual investors can easily access institutional-quality research on these companies. We believe this investor base to be large, highly educated and seeking new long-term investment ideas."

SmallCaps is currently recommending the following stocks:

ACTV, Inc. (Nasdaq: IATV): an Internet technology company creating state-of-the-art programming for the emerging digital TV and Internet platforms. SmallCaps Online believes the potential applications for ACTV's Individualized Television and HyperTV are very broad, and include interactive advertising, electronic commerce and a host of enhanced, interactive entertainment programming.

Access Pharmaceuticals (OTC BB: AXCS): an emerging pharmaceutical company developing a portfolio of drugs and advanced drug delivery systems. SmallCaps Online characterizes AXCS as an emerging pharmaceutical company, rather than a traditional biotech company, as they believe its business model has components that are less risky than the typical one-compound, or one-technology-platform, biotech company.

Advanced Tissue Sciences (Nasdaq: ATIS): a tissue-engineering company developing living human tissue products for therapeutic applications such as tissue repair and transplants. SmallCaps Online believes ATIS presents a unique investment opportunity at this time–in the short term, due to pending results on the company's lead product and longer term, based on related uses for the company's proprietary technology.

AMBI Inc. (Nasdaq: AMBI): a nutritional products company focused on the development and commercialization of products for cardiovascular, diabetic and other medical conditions. The SmallCaps Online analysts believe AMBI has completed its financial turnaround, becoming cash flow positive, cleaning up its balance sheet, completing multiple acquisitions and corporate partnerships, and is poised for significant growth.

Cell Therapeutics (Nasdaq: CTIC): an emerging pharmaceutical company focusing on drugs useful in treating cancer and the serious side effects of cancer treatments. CTIC has a rich pipeline of oncology products in clinical and preclinical trials. The SmallCaps Online analysts anticipate a steady stream of news from CTIC over the next 6-12 months and feel that the stock, which is trading roughly at cash value, is significantly undervalued.

CTC Communications (Nasdaq: CPTL): an integrated communications provider (ICP) offering a comprehensive package of services, including local, long distance, Internet access, frame relay and other data services, on a single, integrated bill. Based on its depth of service, its strong marketing and customer service system and a recent settlement with Bell Atlantic, SmallCaps Online sees great growth potential for the company.

Cubist Pharmaceuticals (Nasdaq: CBST): an emerging pharmaceutical company with a focus on anti-infectives. CBST is not only developing a novel antibiotic, currently in late-stage clinical trials, but has also developed a proprietary technology designed to accelerate the discovery of novel anti-infective targets. With strong corporate partners and near-term potential revenues, SmallCaps Online believes CBST to be significantly undervalued.

Cypress Bioscience, Inc. (Nasdaq: CYPB) a medical products company that recently received FDA approval to market a device that treats moderate to severe rheumatoid arthritis. With a strong corporate partner, a strong balance sheet and another promising product in development, SmallCaps Online believes CYPB stock to be undervalued, particularly relative to its peers.

CytRx Corporation (Nasdaq: CYTR): a development-stage pharmaceutical company with a unique product in late-stage development targeted sickle cell crisis. The SmallCaps Online analysts think this is an opportune time to purchase CYTR shares, as interim results in its sickle cell trial should be released the first week in May.

Megabios (Valentis) (Nasdaq: MBIO): a gene therapy company that recently merged with GeneMedicine to create Valentis, a leader in the development of plasmid-based gene medicines. SmallCaps Online believes the merger to be extremely synergistic–creating a company with seven products in clinical trials and a pipeline behind them, strong corporate partnerships, an excellent balance sheet and a low cash burn rate.

Ortec International (Nasdaq: ORTC): a development-stage, tissue-engineering company developing and commercializing a skin regeneration product. Expected to be on the market by the end of the year for a rare skin disease, SmallCaps Online expects the product to generate significant sales for other therapeutic indications as well.

SmallCaps Online LLC is a registered investment advisor (NY State) focused on identifying emerging growth companies in the healthcare and information technology sectors that offer compelling investment opportunities over the long term. By providing comprehensive financial services, including corporate finance, M&A advisory, strategic partnering and communications consulting, the company positions itself to provide a fully integrated package of value-added services to emerging growth companies.

The information in this press release has been obtained from sources that SmallCaps Online LLC believes to be reliable, but the Company does not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation by SmallCaps Online LLC for the purchase or sale of any securities. SmallCaps Online LLC may have performed investment banking, consulting or other services for and may solicit investment banking, consulting or other business from, any company mentioned in this release. SmallCaps Online LLC or persons associated with SmallCaps Online LLC may at anytime be long or short any of the securities referred to herein and may make purchases or sales thereof while the Company's reports are in circulation or posted on the SmallCaps Online LLC web site at www.SmallCapsOnline.com. This material, or any portion thereof, may not be reproduced without prior permission from SmallCaps Online LLC. SmallCaps Online LLC is not responsible for the contents of this document that is intended for electronic transmission and could be thus subjected to tampering or alteration. Copyright © 1999 by SmallCaps Online LLC. All rights reserved.