GreyStone's Lender Calls Note Due to Distributor's Dissolution; OptMark Agreement Will Not Be Funded

Apr 12, 2001, 01:00 ET from GreyStone Digital Technology, Inc.

    SAN DIEGO, April 12 /PRNewswire/ -- GreyStone Digital Technology, Inc.
 (Nasdaq:   GSTN) announced today that its 12-month $2.5 million line of credit
 has been called by the lender as a result of the dissolution of GreyStone's
 exclusive distributor, Virtual Distribution, Inc. (VDI), by VDI's parent,
 Jillian's Entertainment Corporation.  The lender has requested GreyStone to
 repay the $1,050,000 that has been drawn on the line to date.  GreyStone is
 working to obtain replacement financing to support the Company's near term
 cash requirements.
     As a separate matter, the Company has learned that OptMark, Inc., cannot
 raise, and cannot pay GreyStone the $1.3 million anticipated by the
 January 2001 services agreement between the two companies.  Under the
 agreement, OptMark was to pay GreyStone to develop enhanced software
 applications of enhanced interactive content for wireless media platforms.
 GreyStone intends to market its Virtual-Info-Space development capabilities
 directly to prospective customers.
 
     Based in San Diego, California, GreyStone Digital Technology's goal is to
 position itself as a leading provider of applications of advanced digital
 technology that customers use to help people solve problems, communicate, and
 improve their businesses, products, and services.  The company is experienced
 in providing powerful real-time, interactive and networked 3-D digital
 immersion software and systems for defense customers and has applied this
 experience in the development of products for entertainment markets.
 GreyStone's products and services address a demand from military,
 entertainment, law enforcement, and other markets such as education, wireless
 communications, the Internet, e-commerce, and e-services for improved ways to
 access and use digital information.
     More company information is available on the company's website at
 http://www.gstone.com.
 
     This news release contains statements that are not purely historical, and
 as such are forward-looking statements under the federal securities laws.
 These include forward-looking statements regarding management's intentions,
 plans, hopes, beliefs, expectations or projections of the future.  These
 forward-looking statements involve risks and uncertainties, including without
 limitation, acceptance of the company's products and services; additional
 financing requirements; the impact of competitive products or pricing;
 technological changes; the effect of economic conditions; the ability to
 successfully commercialize the company's entertainment products; the company's
 dependence on key engineering, technical, and other skilled personnel and
 other risks and uncertainties detailed from time to time in the company's
 reports filed with the Securities and Exchange Commission.  One or more of
 these factors could affect the company's business and financial results in
 future periods, and could cause actual results to differ materially from plans
 and projections.  There can be no assurance that the forward-looking
 statements made in this news release will prove to be accurate, and issuance
 of such forward-looking statements should not be regarded as a representation
 by the company, or any other person, that the objectives and plans of the
 company will be achieved.  All forward-looking statements made in this news
 release are based on information presently available to management, and the
 company assumes no obligation to update any forward-looking statements.
 
 

SOURCE GreyStone Digital Technology, Inc.
    SAN DIEGO, April 12 /PRNewswire/ -- GreyStone Digital Technology, Inc.
 (Nasdaq:   GSTN) announced today that its 12-month $2.5 million line of credit
 has been called by the lender as a result of the dissolution of GreyStone's
 exclusive distributor, Virtual Distribution, Inc. (VDI), by VDI's parent,
 Jillian's Entertainment Corporation.  The lender has requested GreyStone to
 repay the $1,050,000 that has been drawn on the line to date.  GreyStone is
 working to obtain replacement financing to support the Company's near term
 cash requirements.
     As a separate matter, the Company has learned that OptMark, Inc., cannot
 raise, and cannot pay GreyStone the $1.3 million anticipated by the
 January 2001 services agreement between the two companies.  Under the
 agreement, OptMark was to pay GreyStone to develop enhanced software
 applications of enhanced interactive content for wireless media platforms.
 GreyStone intends to market its Virtual-Info-Space development capabilities
 directly to prospective customers.
 
     Based in San Diego, California, GreyStone Digital Technology's goal is to
 position itself as a leading provider of applications of advanced digital
 technology that customers use to help people solve problems, communicate, and
 improve their businesses, products, and services.  The company is experienced
 in providing powerful real-time, interactive and networked 3-D digital
 immersion software and systems for defense customers and has applied this
 experience in the development of products for entertainment markets.
 GreyStone's products and services address a demand from military,
 entertainment, law enforcement, and other markets such as education, wireless
 communications, the Internet, e-commerce, and e-services for improved ways to
 access and use digital information.
     More company information is available on the company's website at
 http://www.gstone.com.
 
     This news release contains statements that are not purely historical, and
 as such are forward-looking statements under the federal securities laws.
 These include forward-looking statements regarding management's intentions,
 plans, hopes, beliefs, expectations or projections of the future.  These
 forward-looking statements involve risks and uncertainties, including without
 limitation, acceptance of the company's products and services; additional
 financing requirements; the impact of competitive products or pricing;
 technological changes; the effect of economic conditions; the ability to
 successfully commercialize the company's entertainment products; the company's
 dependence on key engineering, technical, and other skilled personnel and
 other risks and uncertainties detailed from time to time in the company's
 reports filed with the Securities and Exchange Commission.  One or more of
 these factors could affect the company's business and financial results in
 future periods, and could cause actual results to differ materially from plans
 and projections.  There can be no assurance that the forward-looking
 statements made in this news release will prove to be accurate, and issuance
 of such forward-looking statements should not be regarded as a representation
 by the company, or any other person, that the objectives and plans of the
 company will be achieved.  All forward-looking statements made in this news
 release are based on information presently available to management, and the
 company assumes no obligation to update any forward-looking statements.
 
 SOURCE  GreyStone Digital Technology, Inc.