Supplement to Proxy Statement of Computer Outsourcing Services, Inc. dated April
25, 2000
Computer Outsourcing Services, Inc. (Nasdaq:COSI) today announced that Zach
Lonstein, Chairman of CEO of COSI has agreed to grant to DB Capital Partners and
Sandler Capital an option to purchase up to an aggregate of 750,000 shares of
his common stock in COSI at a purchase price of $25.00 per share. The option
will expire on the 7th anniversary of the date of grant. This option is being
granted in connection with the proposed investment by DB Capital Partners and
Sandler Capital in convertible preferred stock and warrants to purchase common
stock of the Company and the granting of the option is contingent upon the
consummation of that investment.
