ADSTW Adstar Wts 12/16/2004 (MM)

AdStar Raises $1.635 Million in Private Placement MARINA DEL REY, Calif., Dec. 24 /PRNewswire-FirstCall/ -- AdStar, Inc. , a leading software and application service provider (ASP) for the classified advertising industry, today announced that it has completed a private placement of common stock, raising $1.635 million. The company initiated the private placement on November 20, 2003 and sold 1,257,692 million shares to accredited investors. "This private placement continues to show the investment community's confidence in our company and its technology," said Leslie Bernhard, president and chief executive officer of AdStar. "The capital raised in this recent private placement and the remaining proceeds from our prior financing will provide us with the resources we need to continue to aggressively grow our ASP business and execute on our business plan. The fruits of our plan have already been demonstrated with the recent acquisition of profitable Edgil Associates." About AdStar, Inc. AdStar (NASDAQ:ADSTNASDAQ:ADSTW), headquartered in Marina del Rey, Calif., is a leading provider of remote advertising technology products and services to the $20+ billion classified advertising industry. AdStar transforms publishers' Web sites into full-service classified ad sales channels for their print and online classified ad departments. Since 1986, AdStar has set the standard for remote ad entry software by allowing advertisers the ability to place ads electronically with many of the largest newspapers in the United States. Today, AdStar's infrastructure, through its private label model, powers classified ad sales for more than 40 of the largest newspapers in the United States, the Newspaper Association of America's bonafideclassifieds.com (where ads can be placed in more than 120 newspapers), CareerBuilder, and a growing number of other online and print media companies. The company's common stock is listed on the Nasdaq Stock Market under the symbol "ADST." Forward Looking Statements This release contains forward-looking statements concerning the business and products of the company. Actual results may differ from those projected or implied by such forward-looking statements depending on a number of risks and uncertainties including, but not limited to, the following: historical business has already matured, new online business is unproven and may not generate expected revenues, and Internet security risks. Other risks inherent in the business of the company are described in Securities and Exchange Commission filings, including the company's annual report on Form 10-KSB. The company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release. AdStar Company Contact: Jeff Baudo, 310-577-8255, AdStar Media Contact: Kevin Wilson, 801-898-5520, AdStar Broker Contact: RJ Falkner & Company, Inc., 800-377-9893, DATASOURCE: AdStar, Inc. CONTACT: Jeff Baudo of AdStar, +1-310-577-8255, ; or Media, Kevin Wilson, +1-801-898-5520, , for AdStar; or AdStar Broker, RJ Falkner & Company, Inc., +1-800-377-9893, , for AdStar

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