BASIS TECHNOLOGY CONFIDENT OF CONTINUING SUCCESS IN FACE OF NEW AMAZON.COM LAWSUIT

CAMBRIDGE, MA; June 27, 2006 – Basis Technology Corp. says a lawsuit filed against it by Amazon.com last week is without merit and characterized the suit as a continuation of a legal battle that Amazon.com has been losing in the courts.

Last year, Basis Technology successfully sued Amazon.com, which at the time was a preferred shareholder in Basis. After just three days of trial testimony, Amazon agreed to settle Basis’s claims by, among other things, agreeing to convert all of its shares into common stock. When Amazon.com later tried to renege on the settlement, the trial judge upheld the agreement. Unhappy with the result, Amazon.com appealed. It filed the current suit while the appeal in the initial case is still pending.

Basis Technology CEO Carl Hoffman says the suit is simply an inappropriate attempt to pressure Basis Technology during the ongoing appeal process. “We are confident that the courts will once again rule in our favor,” he says.

Basis Technology, based in Cambridge, Mass., provides multilingual software for text mining, informational retrieval, e-commerce, and national security applications.

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