<PAGE> 1
[CYSIVE LOGO]
Contact: John R. Lund, CFO
Press: Penny Karas
Cysive, Inc.
703.259.2300
Katherine Mittelbusher
Press: Eileen King
Morgen Walke Associates
212.850.5600
FOR IMMEDIATE RELEASE
CYSIVE(TM) ENDS CLIENT RELATIONSHIP
Reston, Va. - August 23, 2000 - Cysive, Inc. (Nasdaq: CYSV), premier
builders of e-business architectures, today announced that it terminated a time
and materials contract with CorPay Solutions, Inc. for failure to pay its
outstanding invoices. Cysive will take the necessary legal steps to recover the
amounts owed by CorPay under the contract and protect its intellectual property
rights.
CorPay engaged Cysive in October of 1999 and has paid a total of
approximately $4.5 million for services rendered. Due to this termination,
Cysive expects revenues in the third quarter to be approximately $3.9 million
lower than anticipated and expects revenues in the fourth quarter to be
approximately $1.5 million lower than anticipated. As a result of this
termination, the financial impact anticipated in the third quarter from loss of
revenues, costs incurred, bad debt expense and other charges is expected to be
approximately $5.0 million, or $0.12 per share after tax, on a fully diluted
basis.
"While we regret being forced to make this decision, the termination of
the CorPay contract will free up valuable engineering resources for existing and
new clients." said Nelson A. Carbonell, Jr., Chairman, President and Chief
Executive Officer of Cysive.
ABOUT CYSIVE(TM)
Combining an experienced and highly skilled software engineering staff with the
use of cutting-edge technologies, Cysive has established itself as a leading
builder of custom e-business systems for customers ranging from dot com startups
to Global 2000 leaders - including Cisco Systems, Classified Ventures
(cars.com), First Union, Equifax and medibuy.com. Cysive is headquartered in
Reston, Va. with additional offices in Atlanta, Boston, Chicago, Dallas,
Mountain View, Calif., New York, Southern California and a sales office in
Houston. Cysive can be found on the Internet at www.cysive.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding Cysive's business which are not
historical facts are "forward-looking statements" that involve risks and
uncertainties. For a discussion of such risks and uncertainties, which could
cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in the Company's prospectus dated March 17, 2000
and its other filings under the 1934 Act, as amended.
