ORTHSTAR ANNOUNCES PURCHASE OF
HUGHES TRAINING'S RAIL SIMULATION BUSINESS

 

ELMIRA, NEW YORK, July 3, 1996 -- ORTHSTAR, Inc., a Systems, Simulation and Software Engineering organization, today announced it has purchased Hughes Training, Inc.'s Rail Simulation business. The sale includes all business assets, technology, field service operations and customer bases associated with Hughes Training's Rail Simulation business in Binghamton, New York.

ORTHSTAR's business relationship with Hughes Training started in 1982 by assisting in the development of B-52 flight simulators and has continued with other aspects of simulation development, including most recently the B-2 flight simulator. ORTHSTAR's current markets include system and software development for aerospace and aircraft, railroad and transit, industrial automation and process control, as well as power generating utilities (conventional and nuclear).

ORTHSTAR, a New York State corporation, has created over 100 real-time and on-line systems since 1974. ORTHSTAR's technology extends from developing intricate flight and engine controls, submarine systems, locomotive and transit systems, simulation modeling, navigation and global positioning software and on-line testing systems to total factory automation and automatic train control.

Mr. James Orsillo, CEO of ORTHSTAR, stated "The acquisition of Hughes Training's Rail Simulation business is a natural adjunct to the system development business that ORTHSTAR now enjoys with its clients. This advanced technology is an important phase of our five-year plan and allows ORTHSTAR to offer our rail and transit clients technology that was not available until recent years."

On June 3, 1996, ORTHSTAR broke ground for their new, 30,000 square foot, corporate offices in the Chemung County Airport Corporate Park. ORTHSTAR will relocate its current system and software development activities to the new corporate offices as well as use this location to establish the base activities for the Rail Simulation business.

Mr. Orsillo further stated, "This is an important step in our plan to become a world-class system and software engineering company. As ORTHSTAR expands internationally in the next few years, we will undergo many changes and face many new challenges. After all, if it wasn't pure fun to test our limits, we would never try."

                                                                                                                                                                       
07/96


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