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Waterstone's and Versaware Take the Lead In UK eBOOK Revolution

Waterstone's and Versaware Take the Lead In UK eBOOK RevolutionWaterstone's, the UK's leading bookseller, and Versaware (www.versaware.com), a global leader in Internet and electronic publishing, today announced an agreement that will allow Waterstone's to sell thousands of electronic books from its website, Waterstone's Online, at www.waterstones.co.uk.

Waterstone's is taking a pioneering role in the United Kingdom for the sale of eBooks. This agreement will allow customers to search for e-Books at Waterstone's Online, then link to Versaware's website to place their order for Versabooks, the premiere electronic book format available today. In the future customers will be able to both search for and purchase e-Books through Waterstone's Online.

The partnership is being launched with a special e-Books promotion. A link from www.waterstones.co.uk to eBookCity.com (Versaware's eBookstore) will enable customers to download Sams Teach Yourself Windows 98 in 24 Hours and Sams Teach Yourself to Create Webpages in 24 Hours on to their PCs or to read these titles in their own online library. If customers buy both books, they will also receive, free of charge, Sams Teach Yourself Microsoft Office 2000 in Ten Minutes.

Ian Newman, Waterstone's IT Director, comments, "Waterstone's is committed to providing its customers with the most enjoyable and rewarding reading experience available and we recognize the unique value of electronic books. Versaware's e-Book is an excellent format and we are delighted to be working with them.

"We are excited that Waterstone's, the leading UK bookseller, has embraced the Versaware technology," said Sol Rosenberg, a co-founder of Versaware. "The combination of the Waterstone's brand with Versaware e-Book technologies will enable thousands of users to build their own libraries of electronic books."

Versaware's e-Book format greatly enhances the e-Book experience, enabling customers to build and research within their own library of e-Books, searching electronically across all, or any part, of the collection.

Notes to Editors

Individual retail prices for the three e-Books featured in the Waterstone's promotion are (pound)8.10 for Sams Teach Yourself Windows 98 in 24 Hours, (pound)10.16 for Sam's Teach Yourself to Create Web Pages in 24 Hours retails and (pound)5.39 for Sams Teach Yourself Microsoft Office 2000 in Ten Minutes.

About Versaware

Versaware Inc., a world leader in Internet and electronic publishing, has fueled the exploding world-wide demand for intelligent, feature-rich content with its proprietary enabling technology and platform-neutral distribution channels. Versaware technology enables readers to create and organize personalized electronic libraries with recurring updates and sophisticated search and cross-reference capabilities.

Some of Versaware's key clients include ZDNet (NYSE: ZDZ), McGraw-Hill (NYSE: MHP), Lycos (NasdaqNM: LCOS), barnesandnoble.com, Pearson, Funk & Wagnalls, XOOM.com (Nasdaq: NBCI) and Simon & Schuster Interactive.

Headquartered in New York City, Versaware has sales and marketing offices in Silicon Valley, research and development facilities in Jerusalem, Israel, and production facilities in Pune, India.

About Waterstone's

There are 212 Waterstone's bookshops in the United Kingdom, Ireland and Europe, including the company's flagship, the biggest bookshop in Europe in London's Piccadilly, which opened in September 1999.

Waterstone's Online address is: www.waterstones.co.uk.

Features at www.waterstones.co.uk include

- Free delivery of books ordered online to 182 High Street and main

academic branches.

- Up to 50% off current bestsellers.

- Waterstone's booksellers' recommendations and reviews and specialist book
advice by e-mail.

- Customers' own personal libraries.