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Dega Signs Agreement with Jaguar and Range Rover Parts Distributor

17 May 1999

Dega Signs Agreement with Jaguar and Range Rover Parts Distributor for Internet Catalogue

    SAN LUIS OBISPO, Calif., May 14 -- Dega Technology, Inc.
(OTC Bulletin Board: DEGA) today announced that it has entered into an
agreement with XKs Unlimited, a specialty parts warehouse distributor, to
build a Jaguar, Range Rover and Specialty Gauges Internet parts catalogue.
The parts catalogue, accessible to anyone on-line, will allow users to search
for, identify and order parts real-time, using Dega's 3-click user interface.
    "The benefits of adding the Internet to XKs current business will be
enormous," stated Dega Director of Marketing Amye Mueller.  "By using an
Internet catalogue with ordering capability, the XKs customer, using a
standard browser, will be able to search for parts and/or accessories, and
obtain accurate and up-to-the-minute pricing and information.  From the supply
side, XKs will be able to provide an efficient ordering system to their
customers.  Improved response time to customer part orders, decreased
telephone costs, upselling using Dega's automatic merchandising features,
attracting a new market segment via electronic commerce, maintaining and
expanding their current customer base, and distributing promotional material
and new product information quickly and efficiently are among the many
features."
    The agreement with XKs is for a five-year period and will provide Dega
with a recurring revenue stream generated from both Business-to-Business and
Business-to-Consumer commerce.  In addition, as part of the agreement, XKs has
made an investment in Dega by purchasing shares.
    Jean-Pierre Makeyev, President and Chief Executive Officer of Dega stated,
"We are proud to have the prominence of XKs Unlimited's affiliation as we
begin the commercialization of our on-line cataloguing technology.  This is
the first of several specialty catalogues, in addition to our main aftermarket
solutions, targeted to be launched before year end."
    Dega.com is a worldwide leader in the design and development of on-line
parts catalogues for the automotive industry.