ORTHSTAR ANNOUNCES FORMATION OF CANADIAN OPERATION

      ELMIRA, NEW YORK, September 7, 2001-- ORTHSTAR, Inc. announced the recent formation of a 

        new Canadian Operation. Based in Toronto, the office will assist with international marketing initiatives 

        set forth by ORTHSTAR's CEO, James E. Orsillo.

        Mr. Orsillo states "The Canadian Operation is a natural extension of ORTHSTAR's current business activities 

        and is designed to complement ORTHSTAR's marketing efforts currently taking place at the corporate 

        headquarters facility in Horseheads, NY. Many of our large clients in the rail and transit industries have affiliations 

        with Canadian organizations that we could utilize to expand our business activities."

        Heading up the Canadian Operation are Richard Wolfsgruber, P. Eng. and Michael Weiss, P. Eng.  Mr.   

        Wolfsgruber has been appointed Director of International Marketing and Mr. Weiss has been appointed 

        as the Director of Application Engineering.  Mr. Wolfsgruber and Mr. Weiss have extensive backgrounds 

        in the rail and transit industries in both Canada and the United States.

        Mr. Orsillo said, "ORTHSTAR is pleased that both Michael and Richard have joined our organization. 

        Both have unique skill sets that will complement each other well and benefit ORTHSTAR's interests in the 

        North American and International marketplace."

        ORTHSTAR, Inc. is a Horseheads, NY based systems, software and product development organization 

        with a global presence that is celebrating its 27th year serving Fortune 500 clients. ORTHSTAR conducts 

        software and systems development activities in the aerospace and aircraft, railroad and transit, industrial 

       automation, and power utilities industries.