September 26, 1998

SPECIAL UPDATE REPORT

WORDCRAFT SYSTEMS, INC.

Subscribers, here is some important and exciting news on Wordcraft Systems (OTC BB: WORC).

We originally profiled Wordcraft Systems (OTC BB: WORC) on May 15, 1998. If you were not a subscriber at the time or did not read the profile, we strongly recommend that you go back and review the profile now. You can link to the original profile at http://www.otcjournal.com/may15.html. The event that occurred yesterday positions this small Company to have the potential to grow 500% over the next year.

Yesterday, after the stock market closed, Wordcraft Systems (OTC BB: WORC) put out the news release that we have all been waiting for. Before we present it to you, we'd like to provide a brief history of events at the Company and trading activity in the stock.

Wordcraft Systems (OTC BB: WORC) markets a software product called HydraFax. This is an integrated software solution for faxing, printing, and networking in large organizations. Their client base reads like the Who's Who of American companies. A list of their client base in the original profile.

We expected them to obtain the rights to market a product called SWIM, an acronym for Sewer/Water Infrastructure Management System, by the end of June. This is a revolutionary computer solution for managing municipal water systems. There are thousands of potential customers in the United States alone. For full details, go back and read our original profile. You can get an idea of how this system works by linking to http://www.sddpc.org/emergtec/emergtec.html#penbased

Oaktree Consulting Group of San Diego assessed the value of SWIM at $18 million. With 13 million shares issued and outstanding on Wordcraft (OTC BB: WORC), the stock could theoretically trade at $1.40 if Wordcraft (OTC BB: WORC) obtained the rights to distribute this product. On August 5, Howard Stillman, a registered securities analyst with the New York Stock Exchange, placed a buy recommendation on the stock with a target price of $1.50. For the full text of his research report, link to http://www.otcjournal.com/aug_5_98.html.

At the time we issued the profile, we were expecting Wordcraft Systems (OTC BB: WORC) to obtain the rights to market this product by the end of June.

When we issued the original profile, the stock was trading at $.21. Within two weeks the stock traded up 350% to $.73 before beginning a slow and painful four month descent, only to end up right back where it started at $.21.

The Company had not been able to sign the Agreement to market SWIM with San Diego Data Processing, the city owned corporation that developed the technology.

Today, Wordcraft Systems (OTC BB: WORC) finally announced that they have obtained the rights to market SWIM. More importantly, they have the exclusive rights and will actually own the technology after a certain period of time.

Discussions with senior management at the Company today revealed that, in anticipation of obtaining the rights to market SWIM, Wordcraft Systems (OTC BB: WORC) has already been out demonstrating the technology to potential customers. They have also been hiring personnel and building the infrastructure to launch this new. Management cautioned us not to expect the first purchase orders for at least 30 days, but expressed a high level of confidence that sales would begin in the near future.

The following is the full text of the press release:

Wordcraft Systems, Inc.
19782 MacArthur Blvd., Ste. 360, Irvine, CA 92612
Tel: 949-261-7044 (Fax: 949-261-9018)

WORDCRAFT SYSTEMS ACQUIRES SWIM(tm) SOFTWARE FROM SAN DIEGO DATA PROCESSING CORPORATION

IRVINE, CA.....September 25, 1998, Wordcraft Systems, Inc. (through its subsidiary Next Century Systems, Inc.) has entered into a Purchase/ Distribution Agreement with San Diego Data Processing Corporation (SDDPC) to acquire its powerful proprietary SWIM(tm)(GIS) and SWIM(tm) (Pen) software programs. SWIM(tm) (an acronym for Sewer Water Infrastructure Management), is a water, wastewater and reclaimed water facility maintenance and management PC based software system which allows the user (water/wastewater utility companies) to computerize its facility's data. It has very successfully been used by the City of San Diego since the spring of 1996.

The SWIM(tm) (GIS) software is the only software available which allows the user to convert the facility's paper mapping data into computer text and in addition it provides, by utilizing Geographic Information Systems (GIS) technology, a tight link between service orders, facility maintenance and facility data.

The SWIM(tm) (Pen based component) software utilizes state of the art Global Positioning Systems (GPS) technology, and thus provides work order management, field crew dispatch capability, facility service locations and maintenance history. Editing, data capture and modeling management can also be entered from a computer notebook in the field. The SWIM(tm) products are priced on a per workstation basis including software licenses, custom modifications and training. According to industry analyst, Oaktree Consulting Group, automated Water Utilities average approximately 12 workstations.

The SWIM(tm) software products have been a multi million dollar project that was developed by SDDPC for the City of San Diego Water and Wastewater departments. SDDPC had a Revenue of $41.1 million for the year ended June, 1997, and its shareholders' Equity is $11.8 million.

SWIM(tm) is a Microsoft Windows-based client/server application using Oracle, PowerBuilder and Visual Basic and running also on pen based computers. The software has been broadly designed and may be modified for the Gas and Electric Utilities as well.

Water Utilities are generally highly profitable entities, of which, approximately 85% are owned by Municipalities. Generally, the Water Utilities division is one of its major profit centers which can be further enhanced by our more efficient software management system (SWIM(tm)). According to the American Water Works Association, there are in excess of 60,000 Water Utilities in the United States. This translates into a combined software market potential of Water, Gas and Electric utilities in excess of $1.0 billion.

For further information, visit our public relations website at www.1stNetTech.com/worc.

This news release contains forms of forward-looking statements that are based on the company's beliefs as well as assumptions made by information currently available to the company. Such statements are subject to certain risks, uncertainties, and assumptions, which are identified in the company's Rule 15c-11 Information Statement. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results will vary materially from those anticipated, estimated or projected and the variations may be material.

Multi-National Designers & Makers of Computer/Fax Software Internet: http://www.wordcraft.com * e-Mail: wsinc@ix.net.com End news release

Wordcraft Systems (OTC BB: WORC) finally delivered the Agreement three months behind schedule. Perhaps, with a few contracts under their belt, this stock will trade to the $1.50 range that Mr. Stillman projected. In the meantime, if it trades back to where it went shortly after we originally released the profile, it will be a substantial improvement from its current levels.

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