SSGI Records 32% Annual Revenue Growth; Auditors Remove Company's 'Going Concern' Status

Apr 12, 2001, 01:00 ET from Strategic Solutions Group, Inc.

    ANNAPOLIS, Md., April 12 /PRNewswire/ -- Strategic Solutions Group, Inc.
 (OTC Bulletin Board:   SSGI), a leading services provider of technology-based
 training and just-in-time information applications for the manufacturing
 market, today announced that it has recorded the highest annual revenue in
 Company history.  One of the most notable points in the Company's Annual
 Report, filed today with the SEC, was an item not included in the form 10-KSB,
 as the Company's independent auditors no longer express uncertainty as to
 whether the Company can continue as a going concern.
     The Company experienced significant growth in revenue, with total revenues
 for the year ended December 31, 2000 of $1,312,613 as compared to $992,331 for
 1999, an increase of approximately $320,000 or 32%.  The Company also
 recognized net income resulting in a .01 earnings per share (EPS) for the year
 2000.
     The Company has entered 2001 with a record backlog for its multimedia
 products, and with indications that market demand is increasing.  Moreover,
 with the ramp up of the VarsityHeavyDuty.com portal, management anticipates
 that the Company will experience significant growth in revenue for the year
 2001.
     Citing the Company's accomplishments of the past year, SSGI's President
 and COO Ernie Wagner stated: "We reshaped the Company during the year 2000 so
 that the core business would sustain itself through operating profitability.
 We repurchased outstanding debt and achieved operating profitability in the
 second quarter, while maintaining a record revenue growth rate.  Recently, the
 Company obtained some very significant private placements, and is actively
 making strategic changes to the composition of its Board of Directors.  Most
 noticeably during the year, we demonstrated our vision for developing online
 university application services with the launch of the VarsityHeavyDuty.com
 portal, which we see as having an extremely high market potential,
 particularly in the area of product marketing.  With those accomplishments, we
 believe we have effectively and successfully positioned the Company for
 operating profitability going forward.  Now with our sustainable business
 model in place, we believe the stage is set for the rapid acceleration of
 SSGI's revenues and earnings."
     The loss from operations for the year ended December 31, 2000 was 13%,
 less than the operational loss for the year ended December 31, 1999.  In
 addition, the cost of service fees for custom multimedia software services
 resulted in both an increase of over 55% in gross profits, and improved
 overall gross margins of approximately 55%, as compared to 48%, for the prior
 year.  The Company attributes the improvement in gross margin to several
 factors, including reuse of previously developed application utilities, a
 higher caliber work force, and a streamlining of the production process.  The
 Company anticipates margins to remain consistent at this level in the future.
     The report of the Company's independent auditors no longer expresses
 uncertainty as to whether the company can continue as a going concern.  "The
 removal of the "doubt as a going concern" is significant in that, as a
 Company, we have had to make some very difficult choices," Wagner continued.
 "The focus of our efforts over the past year has been to solidify the core
 business within SSGI and to ensure its effective operation.  Now, as evidenced
 by our auditors' recent assessment, we have effectively positioned the Company
 going forward so that we should have the ability to address what's best for
 both the short term operations and the long term investment value."
     The Company expects that it will release more detailed information
 concerning recent developments within the coming weeks.
 
     Corporate e-Learning
     According to a March 2000 industry research report on e-learning conducted
 by WR Hambrecht & Co., corporate training accounts for $66 billion of the
 overall education industry, with corporate e-learning being one of the fastest
 growing markets in the education industry.  The report indicated that the
 online training market segment is expected to nearly double in size every year
 through 2003, when it will reach approximately $11.5 billion, making online
 education the hottest trend in corporate training.  Within the e-learning
 market segments, the research report noted that the services segment of the e-
 learning market was the fastest growing segment, with a Compounded Annual
 Growth Rate (CAGR) of 111%.
 
     About Strategic Solutions Group:
     Strategic Solutions Group, Inc. is a leading services provider of
 Technology-Based Training and Just-In-Time Information software applications
 that seamlessly link digital video and audio content with rich text and
 graphics, comprehensive animations and simulations and dynamic Web links.
 These customized solutions provide end-users with a robust, fully integrated
 and highly interactive and intuitive learning experience on their computer
 desktops delivered via the Internet, Intranets, DVD, CD-ROM or any combination
 thereof.
     For more information or to view copies of recent SEC filings, please visit
 their web site at http://www.ssgi.net or contact SSGI's Investor Relations at
 1-480-839-2266.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform
 Act:  With the exception of the historical information contained in this
 document the matters described herein contain forward looking statements that
 involve risk and uncertainties that may individually or mutually impact the
 matters herein described, including but not limited to product demand,
 competition, and market conditions, the result of litigation, technological
 difficulties, the ability of the company to obtain financing on acceptable
 terms and/or factors outside the control of the Company, which are detailed
 from time to time in the Company's SEC reports.
 
 

SOURCE Strategic Solutions Group, Inc.
    ANNAPOLIS, Md., April 12 /PRNewswire/ -- Strategic Solutions Group, Inc.
 (OTC Bulletin Board:   SSGI), a leading services provider of technology-based
 training and just-in-time information applications for the manufacturing
 market, today announced that it has recorded the highest annual revenue in
 Company history.  One of the most notable points in the Company's Annual
 Report, filed today with the SEC, was an item not included in the form 10-KSB,
 as the Company's independent auditors no longer express uncertainty as to
 whether the Company can continue as a going concern.
     The Company experienced significant growth in revenue, with total revenues
 for the year ended December 31, 2000 of $1,312,613 as compared to $992,331 for
 1999, an increase of approximately $320,000 or 32%.  The Company also
 recognized net income resulting in a .01 earnings per share (EPS) for the year
 2000.
     The Company has entered 2001 with a record backlog for its multimedia
 products, and with indications that market demand is increasing.  Moreover,
 with the ramp up of the VarsityHeavyDuty.com portal, management anticipates
 that the Company will experience significant growth in revenue for the year
 2001.
     Citing the Company's accomplishments of the past year, SSGI's President
 and COO Ernie Wagner stated: "We reshaped the Company during the year 2000 so
 that the core business would sustain itself through operating profitability.
 We repurchased outstanding debt and achieved operating profitability in the
 second quarter, while maintaining a record revenue growth rate.  Recently, the
 Company obtained some very significant private placements, and is actively
 making strategic changes to the composition of its Board of Directors.  Most
 noticeably during the year, we demonstrated our vision for developing online
 university application services with the launch of the VarsityHeavyDuty.com
 portal, which we see as having an extremely high market potential,
 particularly in the area of product marketing.  With those accomplishments, we
 believe we have effectively and successfully positioned the Company for
 operating profitability going forward.  Now with our sustainable business
 model in place, we believe the stage is set for the rapid acceleration of
 SSGI's revenues and earnings."
     The loss from operations for the year ended December 31, 2000 was 13%,
 less than the operational loss for the year ended December 31, 1999.  In
 addition, the cost of service fees for custom multimedia software services
 resulted in both an increase of over 55% in gross profits, and improved
 overall gross margins of approximately 55%, as compared to 48%, for the prior
 year.  The Company attributes the improvement in gross margin to several
 factors, including reuse of previously developed application utilities, a
 higher caliber work force, and a streamlining of the production process.  The
 Company anticipates margins to remain consistent at this level in the future.
     The report of the Company's independent auditors no longer expresses
 uncertainty as to whether the company can continue as a going concern.  "The
 removal of the "doubt as a going concern" is significant in that, as a
 Company, we have had to make some very difficult choices," Wagner continued.
 "The focus of our efforts over the past year has been to solidify the core
 business within SSGI and to ensure its effective operation.  Now, as evidenced
 by our auditors' recent assessment, we have effectively positioned the Company
 going forward so that we should have the ability to address what's best for
 both the short term operations and the long term investment value."
     The Company expects that it will release more detailed information
 concerning recent developments within the coming weeks.
 
     Corporate e-Learning
     According to a March 2000 industry research report on e-learning conducted
 by WR Hambrecht & Co., corporate training accounts for $66 billion of the
 overall education industry, with corporate e-learning being one of the fastest
 growing markets in the education industry.  The report indicated that the
 online training market segment is expected to nearly double in size every year
 through 2003, when it will reach approximately $11.5 billion, making online
 education the hottest trend in corporate training.  Within the e-learning
 market segments, the research report noted that the services segment of the e-
 learning market was the fastest growing segment, with a Compounded Annual
 Growth Rate (CAGR) of 111%.
 
     About Strategic Solutions Group:
     Strategic Solutions Group, Inc. is a leading services provider of
 Technology-Based Training and Just-In-Time Information software applications
 that seamlessly link digital video and audio content with rich text and
 graphics, comprehensive animations and simulations and dynamic Web links.
 These customized solutions provide end-users with a robust, fully integrated
 and highly interactive and intuitive learning experience on their computer
 desktops delivered via the Internet, Intranets, DVD, CD-ROM or any combination
 thereof.
     For more information or to view copies of recent SEC filings, please visit
 their web site at http://www.ssgi.net or contact SSGI's Investor Relations at
 1-480-839-2266.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform
 Act:  With the exception of the historical information contained in this
 document the matters described herein contain forward looking statements that
 involve risk and uncertainties that may individually or mutually impact the
 matters herein described, including but not limited to product demand,
 competition, and market conditions, the result of litigation, technological
 difficulties, the ability of the company to obtain financing on acceptable
 terms and/or factors outside the control of the Company, which are detailed
 from time to time in the Company's SEC reports.
 
 SOURCE  Strategic Solutions Group, Inc.