IMSI Achieves Operating Profit.

Business Editors

NOVATO, Calif.--(BUSINESS WIRE)--July 10, 2000

IMSI(R), (OTC "Pink Sheets": IMSI), developer of design software including TurboCAD and FloorPlan3D, and owner of ArtToday.com and HomeDesignToday.com, Monday announced that it has achieved operating profits and positive operating cash flow for the quarter ending June 30, 2000.

IMSI will hold a national conference call on Thursday, July 13, 2000 at 8:00 a.m. PST to brief investors on current and upcoming corporate events. The call-in number is 800/218-0204 and the confirmation code is 735744. The toll-free call will be accessible to the first 200 participants who call in. Participants are encouraged to call five minutes prior to the scheduled start time. There will be a brief question and answer period at the end of the call.

The conference call can also be heard over the Internet through Vcall at http://www.vcall.com. To listen to the live call, listeners should go to the Web site at least 15 minutes early to register, download and install any necessary audio software. For those who are unable to listen to the live broadcast, a replay will be available shortly after the call on the Vcall.com Web site.

"IMSI had a positive EBITDA and positive cash flow from operations for the quarter ending June 30, 2000, on revenues for the three months of over $3.7 million," said Geoffrey Koblick, chief executive officer and president of IMSI. "Of equal importance, in the four months since I returned to IMSI, we have implemented a new strategic plan and restructured the company for future growth on a profitable operating basis."

"We started by adding experienced management with proven success records, including Jeff Morgan, CFO, and executive vice presidents, Paul Jakab and Mike Gariepy, to an already experienced management team (see more detail below). We have also added three new members to our board. I am confident this team can execute our plans."

"We are pleased with the progress we have made, but the company has several challenges ahead with respect to our balance sheet. While IMSI continues to be in default under its loan agreements, our creditors are working with the company by providing time to remedy this situation. In addition to our goal of continuing to operate profitably, we are exploring a wide range of alternatives to address these issues including…