Business Editors
 
	    BALTIMORE--(BUSINESS WIRE)--July 10, 2000--Carnegie International
Corporation (OTC BB: CGYC), an Internet support and computer telephony
holding company, announced today that it has signed a Letter of Intent
to acquire the business of ARC Communications of Piscataway, New
Jersey. The projected closing on the acquisition is within 60 days,
following legal review of contracts and finalization of due diligence.
	    ARC (www.arccom.com) is an authorized Lucent(R) (NYSE: LU)
Business Partner, a Cisco(R) (NASDAQ: CSCO) Premier Partner, and a
dealer/distributor for Samsung(R), VoySys(R), Key Voice(R) and
Nokia(R) (NYSE: NOK)/Telekol(R) Intelligent Applications Inc., U.S.
Robotics(R)/3Com(R) (NASDAQ: COMS) Telephone Products, Polycom(R)
Audit Conferencing products, and ECI/Tadiran(R) Digital PBX's and
CoralAir(R) wireless solutions. ARC also has a 35% interest in a
master dealer/distributor for Nextel(R) digital wireless products and
services in the New York Metropolitan Area.
	    In addition to representing companies and products, ARC
remanufactures telephone products -- primarily Lucent. The
remanufacturing business provides an opportunity for greater margins
with costs substantially less for both ARC and its customers. ARC
maintains inventory of approximately $2 million in refurbished
equipment, and can service customer needs directly and through its
wholesale business on a one-day notice.
	    The combined sales and services business have put ARC on an
annualized revenue stream of approximately $7 million for the current
fiscal year.
 
     ARC, Carnegie Share a Vision
 
	    "ARC has a shared vision with Carnegie regarding convergence of
voice and data," said Lowell Farkas, president of Carnegie. "That
vision includes the ability with the convergence of these technologies
to provide a range of B2B solutions which encompass voice and data,
software and hardware, unified messaging business solution software,
networking local and long-distance dial tone, web access and page
design, and an ASP model where companies can access state-of-the-art
services without up-front purchase.
	    Farkas said Carnegie "has begun due diligence regarding ARC and
looks forward to closing on the acquisition. ARC's business
complements and enhances the business of ACC Telecom, A Carnegie
subsidiary based in Columbia, Maryland, as well as our Illinois
subsidiary, American Telephone and Computers," he said.
	    "ARC'S management team brings unique talents to Carnegie," Farkas
added. "ARC has been led by Alan Borck, its president and a long term
leader in the interconnect business, including being a Board member of
the CT Pioneers, an independent organization which represents VARs in
the voice, data and convergence industry. He is also a past president
of North-American Association of Telecommunications Dealers.
	    Farkas said that Borck's industry insights and contracts will be
instrumental in the future development and marketing of Carnegie's
MAVIS (Multi-Language Automated Voice Independent System), a
breakthrough in speech recognition-driven automated attendant/voice
mail systems, which uses proprietary IVR (interactive voice response)
software to recognize/respond to callers. The third release of MAVIS
is due out shortly.
 
     Carnegie Very Active
 
	    "Since mid-May, the company has been very active," said Farkas
"Through Paramount International Telecommunications, Inc., subsidiary,
we acquired the Federation of Associated Health Systems, Inc., of San
Antonio, Texas, which serves more than 700 hospitals with
telecommunications services, primarily in 0+/0- call auditing and
international one-plus sectors; through American Telephone & Computer
subsidiary, we became an authorized Ameritech(R) distributor in the
Midwest, and we announced that Paramount has signed a three-year
agreement with RoomLinX, Inc., to offer wireless, high-speed Internet
access in hotel and hospital rooms in North America, which we
anticipate will generate $15 million in incremental income over the
next 24 months and move Paramount into a new business model as
increasing use of cell phones erode its 0+/0- bill and clearing
business segment. In addition," he said, "we added two new outside
members to our Board: Steven R. Wood, the CEO, CTO and co-founder of
Seattle-based Odyssey Technology, Inc., and a preeminent software
architect responsible for a significant portion of the basis of
Windows(R) and Window NT(R) during a 14 career with Microsoft(R), and
William M. Reffett, president and a principal in Reffett and
Associates, Ltd., a Seattle-based executive search and
retail-consulting firm, and previously was senior vice president and
vice chairman of Grand Union, a major East Coast grocery store chain."
	    Farkas said Carnegie is on-track and expects revenues to total
approximately $22.6 million for fiscal 2000, with losses reduced
substantially. He said the company's revenues should top $35 million
in 2001.
	    Carnegie also announced that its letter of intent to acquire
Transnational Telecommunication of San Antonio, Texas, and Express
Telecommunication, Inc. of Fort Worth, Texas, has expired
 
     About Carnegie International Corporation
 
	    Carnegie International Corporation (OTC BB: CGYC,
www.carnegieint.com) is an Internet support and computer telephony
holding company with specialization in telecommunications products,
services and distribution, and in E-Commerce and EDI. Its primary
wholly-owned subsidiaries include: RomNet Support Services, Inc., an
Internet, e-business and technical support services company, Profit
Through Telecommunications (Europe) Ltd. (PTT), a telecommunications
software company providing business solutions utilizing proprietary
speech recognition, touch tone and bar code responses to send and/or
receive information; ACC Telecom of Columbia, Maryland, a leading
reseller of equipment and business telephone systems from Comdial,
Lucent, SONY(R) and Sprint(R); American Telephone & Computer, an
Ameritech and Comdial dealer based in Elmhurst, Illinois, in the
Chicago suburbs; Voice Quest, Inc., of Sarasota, Florida, a developer
and provider of speech recognition and voice mail technologies and
products, Paramount International Telecommunications, Inc., of Vista,
California, which serves hotels and other businesses, primarily in
0+/- call auditing and international one-plus sectors, and Federation
of Associated Health Systems, Inc., of San Antonio, Texas, which
serves more than 700 hospitals with telecommunications services,
primarily in 0+/- call auditing and international one-plus sectors.
 
	    Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included
in this Press Release (as well as information in oral statements or
other written statements made or to be made by Carnegie International
Corporation) contain statements that are forward-looking, such as
statements relating to the future anticipated direction of the
telecommunications industry, plans for future expansion, various
business development activities, planned capital expenditures, future
funding sources, anticipated sales growth, and potential contracts.
Such forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results in
the future, and accordingly, such results may differ from those
expressed in any forward-looking statements made by or on behalf of
Carnegie International Corporation. These risks and uncertainties
included, but are not limited to, those relating to development and
expansion activities, dependence on existing management, financing
activities, domestic and global economic conditions, change in Federal
or state laws, and market competition factors.
	    MAVIS is a trademark of Carnegie International Corporation. Other
trademarks are properties of their respective owners.
 
     --30--lp/ny*
 
     CONTACT: Carnegie International Corporation, Baltimore
              Lowell Farkas, 410/785-7400
              lfarkas@carnegieint.com
              or
              The Kaminer Group, White Plains, NY
              David A. Kaminer, 914/684-1934
              dkaminer@kamgrp.com