SmallCaps Online LLC Separately Brands Its Online Research Portal SmallCaps Online; Recommended List Up 106% Since Inception, 88% YTD

SmallCapsOnline.com Provides Investment Research on Small-Cap Companies via the Internet

New York, NY, May 24, 1999 -- SmallCaps Online LLC announced today that it has separately branded its online investment research division SmallCaps Online LLC, a registered investment advisor. All of the Company’s investment research are available at the online small-cap equity research portal: www.SmallCapsOnline.com. The SmallCaps Online Recommended List of compelling small-cap investment opportunities, focusing primarily on healthcare and information technology companies, is up 106% since inception on October 14, 1998, and 88% year to date, on a time-weighted average basis. Additionally, the 30-day average trading volume of the recommended companies is up an average of 111% in comparison to trading volume immediately prior to initiation of coverage.

The SmallCaps Online research portal, formerly www.SmallCapsOnline.com, is a leading destination website and equity research portal for online investors interested in small-cap investment opportunities. Based on positive user feedback, the site has been enhanced over the past several months to provide online investors access to SmallCaps Online’s proprietary research reports and financial models, online public filings, stock quotes and charts, and access to the individual companies’ websites with the simple click of a button. Visitors to the site are kept abreast of all current news and research on the covered companies, through the daily-updated "Today’s Hot Hot News" feature of the website, as well as provided easy access to online trading companies and market commentary sites. Online investors can get timely email updates on research and company news by joining the "opt-in" email list at the website.

Steven H. Rouhandeh, Chairman of SmallCaps Online LLC stated, "According to recently published data, over 20 million households now do their own investment research over the Internet and over 6.3 million individuals have online trading accounts. More importantly, these online investors have a higher percentage of their portfolios in individual stocks relative to mutual funds, in comparison to other investors. By branding our research portal SmallCaps Online, we hope to broaden our reach to this growing online audience who are actively seeking high-quality long-term equity investment ideas."

"One result of the prolonged bull market and the flood of new capital into equity funds has been a trend to invest in larger companies and sell-off, almost indiscriminately, small-cap companies," stated Jeffrey B. Davis, President of SmallCaps Online LLC. "We believe the online investor, through diligent analysis, can find extremely compelling investment opportunities in the small-cap segment of the market. We seek the undiscovered, or ‘institutionally orphaned’ companies, that are fundamentally undervalued, and represent long-term investment opportunities for investors. SmallCapsOnline.com is designed to assist sophisticated online analysts and investors with that diligence effort."

SmallCaps Online is currently recommending the following stocks: ACTV, Inc. (Nasdaq: IATV), Access Pharmaceuticals, Inc. (OTC BB: AXCS), Advanced Tissue Sciences Inc. (Nasdaq: ATIS), AMBI Inc. (Nasdaq: AMBI), ARIAD Pharmaceuticals, Inc. (Nasdaq: ARIA), Cell Therapeutics, Inc. (Nasdaq: CTIC), CTC Communications Corp. (Nasdaq: CPTL), Cubist Pharmaceuticals, Inc. (Nasdaq: CBST), Cypress Bioscience, Inc. (Nasdaq: CYPB), CytRx Corporation (Nasdaq: CYTR), Exigent International, Inc. (Nasdaq: XGNT), Futurelink Distribution Corp. (OTC BB: FLNK), HemaCare Corporation (OTC BB: HEMA), Medarex, Inc. (Nasdaq: MEDX) and Valentis, Inc. (Nasdaq: VLTS).

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SmallCaps Online LLC is a registered investment advisor 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, the company positions itself to provide a fully integrated package of value-added services to emerging growth companies. SmallCaps Online LLC is an affiliate of SmallCaps Online LLC, a provider of online financial investor relations and Internet communications consulting.

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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 or its affiliates 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 its affiliates, or persons associated with SmallCaps Online LLC or its affiliates, 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.