Stronghold Technologies Introduces Version 3.3 of DealerAdvance; Auto Dealerships Report Increased Sales Using New System

BASKING RIDGE, N.J.--Oct. 9, 2003--Stronghold Technologies, Inc. (OTCBB:SGHT) today announced the general release of Version 3.3 of DealerAdvance(TM), the wireless enterprise technology for the automotive retail market. The release features enhanced functionality and a new interface that is more intuitive to users. Stronghold began deploying DealerAdvance(TM) Version 3.3 to new dealership customers in August 2003. Currently eight customers have the latest DealerAdvance(TM) software installed.

"The new interface was designed from the ground up with ease of use in mind," said Lenard Berger, Stronghold's Chief Technology Officer. "We decided to focus on the most important aspects of the follow-up process, without distracting users with nonessential functions. Now a new user can pick up DealerAdvance(TM) and be productive with the system in a matter of minutes."

With a new work-plan, Version 3.3 delivers many improvements that are integral to dealership performance and help increase the number of vehicles sold. Specifically, it improves 1) prioritization, tracking and management of work-flow which enables dealers to sell more vehicles in a shorter period of time; 2) reinforces proven selling practices; 3) manages the sales force and holds them accountable; and 4) reduces the learning cycle to become proficient using the system.

Industry Reaction

"Stronghold has once again proven that DealerAdvance(TM) is the best solution in the business for turning prospects into 'sold' customers," said Tim Pohanka of Pohanka Automotive Group, the ownership and management organization for 12 retail locations representing 21 franchises in the Virginia, Maryland and Washington, DC area. "Stronghold continues to deliver technology improvements and endless client support. To date, three Pohanka dealerships are using DealerAdvance(TM) Version 3.3 as the backbone for their follow-up processes. The latest release of DealerAdvance(TM) enables our sales people to better manage their funnel of potential buyers and should increase the return on investment from our advertising and marketing campaigns. The enhancements that Version 3.3 brings to DealerAdvance(TM) further distances Stronghold's product from everything else we have seen in the market."

Pohanka Honda of Fredericksburg, Va., is a new Stronghold customer that, along with other new and existing customers, received DealerAdvance(TM) Version 3.3. These customers are reporting substantial improvements in sales and other dealership performance areas. Highlights from Pohanka Honda's first full month of use include:

-- Record level of sales in September 2003 with an increase of 33% from the previous best September;

-- Second largest volume month in dealership history;

-- 50% of the sales staff set personal best sales records; and

-- Highest percentage of clients in dealership history responded that they were contacted as part of the follow-up process.

"Management of nearly every dealership believes their sales people are following up on prospects, but they aren't," commented Mike Bowers, editor of Dealers Edge magazine, a leading retail automotive industry publication. "And with nearly 90% of a dealership's traffic leaving without making a purchase, there's a lot of potential vehicle sales to follow-up on. Stronghold has developed a best-in-class product to capitalize on prospect follow-up activities and for dealership executives to manage their sales force. Stronghold's latest software release, DealerAdvance(TM) Version 3.3, improves upon what already was a very impressive offering."

Version 3.3 Overview

Version 3.3 was developed to allow for improved work-flow through DealerAdvance(TM). The system automatically prioritizes a salesperson's follow-up activities (appointments, calls, etc.) according to industry-recognized best practices to produce a daily work plan. The system now acts more intuitively to generate appropriate prompts to guide users through the follow-up process. The screens of both PDAs and desktop PCs with DealerAdvance(TM) have been simplified for easing and accelerating the sales process. These changes will allow a sales force to be more productive through frequent and timely interaction with customers -- a proven formula for increasing sales. The numerous enhancements of DealerAdvance(TM) Version 3.3 also make learning the system easier, which reduces the demands on dealership management and minimizes disruptions to a dealership's business.

DealerAdvance(TM) Background

DealerAdvance(TM) is a proprietary software developed by Stronghold. Marketed to automotive dealerships as part of DealerAdvance Sales Solution(TM), an enterprise software system using wireless technologies, it has at its core a Customer Relationship Management (CRM) application that has been designed to maximize the revenues and reduce the operating expenses of automobile dealerships. The system is used by dealerships to increase sales by effectively capturing a greater percentage of unsold customer prospects and maximizing customer "be-back" (return) and closure rates.

Since inception, Stronghold has spent approximately $2.5 million on research and development activities related to DealerAdvance(TM). Initially launched with Version 1.0 through six pilot dealerships during 2001, Stronghold reported at June 30, 2003 that a total of 55 dealers were using DealerAdvance(TM). The software is improving business performance for 22 major automobile brands, with a concentration in mid-line dealers such as Toyota, Honda, Ford, Chevrolet, Nissan, Volkswagen and Chrysler.

Stronghold Technologies, Inc., is an innovator in applying wireless technology and process improvement methods to increase business efficiency and sales. The Company has developed an integrated wireless technology, called DealerAdvance(TM), which, among many features, allows automobile dealers to capture a customer's purchasing requirements, search inventory at multiple locations, locate an appropriate vehicle in stock and print out the necessary forms. Through an integrated CRM (Customer Relationship Management) application, the systems sends detailed tasks for prospect and customer follow-up and produces management reports to measure compliance. DealerAdvance(TM) allows sales professionals to increase sales, improve customer follow-up, and reduce administrative costs. Additional information is available at Stronghold's Web site at www.strongholdtech.com.

The statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 ("the Securities Act"), as amended and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In particular, the our statements regarding the anticipated growth in the markets for the our technologies, the continued development of our products, the approval of the our Patent Applications, the successful implementation of the our sales and marketing strategies, the anticipated longer term growth of our business, and the timing of the projects and trends in future operating performance are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the timing of revenues due to the uncertainty of market acceptance and the timing and completion of pilot project analysis, and other factors, including general economic conditions, not within our control. The factors discussed herein and expressed from time to time in our filings with the Securities and Exchange Commission could cause actual results to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this filing and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.