Chicago, IL - January 10, 2003 - DOUBLE MATRIX Systems, Inc., one of the chicagoland's leading providers of e-business solutions, announces that it has spun-off its Engineering Services Provider (ESP) division to a new company, DM Engineering llc.. While still remaining under the umbrella of DOUBLE MATRIX, DM Engineering llc. will function as a separate business entity dedicated to providing CAD, CAM and CAE solutions. This action will allow both companies to execute independent strategies and provide greater focus on their respective opportunities, while still benefiting from the resources each company possesses.

"We are beginning an exciting new phase of our life as a leader in our industry," said Chandra Varma, CEO of DOUBLE MATRIX "As an independent company, DM Engineering llc. will sharpen our focus on our target markets and forge deeper, more strategic relationships with our clients."

"Our industry-leading solutions, strong client base and talented team of employees have enabled us to build a solid foundation for our business. With the steps we are taking to improve our performance and reduce our cost structure, we are positioning DM Engineering llc. to take full advantage of the opportunities ahead."

This new structure will enable each company to independently focus on growth opportunities in the most promising markets.

"We are proud to launch DM Engineering llc.." said DOUBLE MATRIX Systems, Inc. Chief Operating Officer Harry Jun. "We wish them every success as they begin an exciting new chapter in our history."

Before the spin-off DOUBLE MATRIX's ESP Division had expanded rapidly to become one of the market leaders in the Engineering Services arena for an increasing array of engineering applications. This restructuring will allow DOUBLE MATRIX to be focused exclusively on building custom applications and IT solutions development. DM Engineering llc.'s focus will be centered around datacenter network performance, application availability and infrastructure reliability.

Both companies remain committed to achieve breakthroughs in simplicity, efficiency and convergence in all businesses solutions they provide. Additionally, each company can further extend the exceptional leadership position of its respective brand.