ADSTW Adstar Wts 12/16/2004 (MM)

AdStar's Stock Price Triggers Conversion of Series A Preferred Stock Into Common Stock MARINA DEL REY, Calif., April 1 /PRNewswire-FirstCall/ -- AdStar, Inc. , a leading software and application service provider for the classified advertising industry, today announced that as a result of the company's common stock closing above $2.25 per share on March 31, 2004, 1,443,457 shares of Series A preferred stock issued to Tribune Company in March 2002 have automatically converted to common stock. As a result of this conversion, the shares have lost their liquidation preference to the common stock of approximately $1.8 million, plus accrued and unpaid dividends. About AdStar, Inc. AdStar, Inc. (NASDAQ:ADSTNASDAQ:ADSTW) is a leading provider of e-commerce transaction software and services for the advertising and publishing industries. AdStar's proprietary suite of e-commerce services includes remote ad entry software, web-based ad transaction services, and payment processing and content processing solutions, which were acquired from Edgil Associates in October 2003. Today, AdStar's ad transaction infrastructure powers classified ad sales for more than 40 of the largest newspapers in the United States, the Newspaper Association of America's bonafideclassifieds.com, CareerBuilder, and a growing number of other online and print media companies. EdgCapture, Edgil's automated payment process solution, is currently employed by call centers in more than 100 of the nation's leading newspaper and magazines. AdStar is headquartered in Marina del Rey, Calif., and its Edgil office is in North Chelmsford, Mass. 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. For further information, please contact: Jeff Baudo, +1-310-577-8255, ,or Media, Kevin Wilson, +1-513-885-5520, , both of AdStar; or Broker Contact, RJ Falkner & Company, Inc., +1-800-377-9893, , for AdStar. DATASOURCE: AdStar, Inc. CONTACT: Company, Jeff Baudo, +1-310-577-8255, , or Media, Kevin Wilson, +1-513-885-5520, , both of AdStar; or Broker Contact, RJ Falkner & Company, Inc., +1-800-377-9893, , for AdStar Web site: http://www.adstar.com/

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