Portal S.A. Launches VRUM, AdStar-Powered Brazilian Automotive Classified Advertising Site

Portal Uses AdStar's Ad Transaction Technology to Empower VRUM as the Leading Online Destination for Buying and Selling of Vehicles in South America's Largest Nation

MARINA DEL REY, Calif. and BELO HORIZONTE, Brazil, Sept. 28 -- AdStar, Inc., the leading provider of e-commerce transaction software and services for the advertising and publishing industries, and Portal S.A., a subsidiary of the Associados Group, have launched an online classifieds ads portal focused on the electronic trade of vehicles in Brazil, which represented more than 52 percent of all retail sales in Brazil in 2005. The site, VRUM, was launched by Associados Group newspapers Estado de Minas and Correio Braziliense in partnership with two other Brazilian newspapers, Folha de Londrina in Parana and A Gazeta in Espirito Santo. Additional Brazilian newspapers are expected to join the portal in coming months.

Portal S.A. has invested more than $35 million BRL ($16 million USD) to develop three vertical classified ad portals. In addition to VRUM, Portal S.A. will introduce a real estate portal in early November, and a portal for employment classifieds shortly thereafter. Portal S.A. utilizes AdStar's XML Gateway Platform to create a seamless connection to the newspapers' front-end publishing systems and to power ad transactions for VRUM and future portals. As a result, advertisers can create, schedule, submit and pay for one or more ads through a single online transaction for publication online and/or in participating newspapers.

"Following almost two years of research and development, we have arrived at the most satisfactory and advanced solution for our project," said Geraldo Teixeira da Costa Neto, organizational development CEO for Estado de Minas and Correio Braziliense -- newspapers belonging to the Associados Group. "With the help of companies such as AdStar, we are implementing in Brazil a proven technology from the more mature North American classified ad market."

According to Costa Neto, Portal S.A. is following the footsteps of Classified Ventures, a joint-venture owned and funded by Belo Corporation, Gannett Company, The McClatchy Company, Tribune Company and The Washington Post Company that capitalizes on the growth in the online classified advertising categories of automotive, apartments and real estate.

"VRUM and the other portals soon to be launched by Portal S.A. bring excitement, creativity, and new revenue potential to the classified ad market in Brazil, and we are pleased to be a part of this nationwide, multi-channel Web advertising deployment," said Leslie Bernhard, president and chief executive officer of AdStar, Inc. "Our technology plays an integral part in providing a user-friendly experience and a seamless advertising connection to newspapers, and our partnership with Portal S.A. and Associados demonstrates what can be accomplished by combining the power of the Internet and the reach and audience of newspapers. This successful project will definitely serve as a springboard for other recurring revenue projects with AdStar partners around the world."

VRUM provides a single destination for car buyers and sellers throughout Brazil to list, search, research and find vehicles. When visiting VRUM, users can access information on more than eight thousand vehicles, including motorcycles and 4WD-vehicles. Users are also able to receive notifications of new offers via cell phone or e-mail, and have full access to data and services concerning product releases, comparative tests and news on special sales events.

"We expect VRUM to become the largest portal for automotive classified ads on the Brazilian Internet," added Costa Neto. "In the first four days of operation, VRUM registered more than one million visits. At the end of 10 days, we had attracted more than three million visitors, generated 19,000 ad offers and recorded more than 300 vehicle sales. The Portal S.A. operations are likely to achieve a turnover close to $20 million BRL ($9.1 million USD) in the first 12 months of operation."

The electronic trade of vehicles in Brazil has grown 35 percent during the last three years. According to the Brazilian Chamber of Electronic Trade (Camara e.Net), online car buyers represent a contingent of nearly five million people, which is equivalent to more than 16 percent of the approximately 29.3 million Internet users in Brazil today.

About Associados

The Associados Group is present in 10 Brazilian states by means of 35 communication vehicles, including the newspapers Estado de Minas and Correio Braziliense. Previously known as Diarios e Emissoras Associadas and founded by Assis Chateubriand in the 1920s, the Associados comprise a total of 39 companies: twelve newspapers, seven TV stations, twelve radio broadcasting companies, along with internet providers, video producers and the Assis Chateubriand Foundation, which is dedicated to educational and cultural projects. For more information about Associados, visit www.uai.com.br.

About AdStar, Inc.

AdStar, Inc. is the leading provider of e-commerce transaction software and services for the advertising and publishing industries. AdStar's proprietary suite of e-commerce services includes remote ad entry software and web-based ad transaction services, as well as payment processing and content processing solutions that are provided through its Edgil Associates subsidiary, the industry's largest supplier of automated payment processing services. AdStar's ad transaction infrastructure powers classified ad sales for more than 40 of the largest newspapers in the United States, CareerBuilder, and a growing number of other online and print media companies. EdgCapture, Edgil's automated payment process solution, is currently employed by call centers at more than 100 of the nation's leading newspaper and magazines. AdStar is headquartered in Marina del Rey, Calif., and its Edgil office is located in North Chelmsford, Mass. For additional information on AdStar, Inc., visit www.adstar.com.

Forward Looking Statements

This release contains forward-looking statements concerning the business and products of the company. Actual results may differ from those projected or implied by such forward-looking statements depending on a number of risks and uncertainties including, but not limited to, the following: historical business has already matured, new online business is unproven and may not generate expected revenues, and Internet security risks. Other risks inherent in the business of the company are described in Securities and Exchange Commission filings, including the company's annual report on Form 10-KSB. The company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

  AdStar Company Contact:  Jeff Baudo, 310-577-8255, jbaudo@adstar.com

  AdStar Media Contact:    Kevin Wilson, 513-898-1008,
                           kwilson@kevinwilsonpr.com