AdStar to Provide Web-Based Classified Ad Transaction Services to Pacific Newspapers Inc., Publishers of The Vancouver Sun and The Province

MARINA DEL REY, Calif., Jan. 4 /PRNewswire-FirstCall/ — AdStar, Inc. , the leading provider of e-commerce transaction software and services for the advertising and publishing industries, today announced that Pacific Newspaper Group Inc., publishers of The Vancouver Sun and The Province, will integrate AdStar’s Web-based ad transaction technology for the enhancement of the publications’ print and online classified ad offerings. Advertisers will be able to create, schedule and pay for their classified ads for publication in the print and online versions of the newspapers. Pacific Newspapers Inc., owned by CanWest Global Communications Corp., operates the two largest daily newspapers in British Columbia, and the newspapers’ Web sites, http://www.vancouversun.com/ and http://www.theprovince.com/, are part of the Canada.com Network.

AdStar provides the ad transaction infrastructure utilized by many of the leading newspapers in North America. AdStar’s Web-based Ad Sales solution provides advertisers with user-friendly ad templates, online and print-specific layouts and feature-rich formatting options, including font size, bold type, borders, indentation, and special characters. AdStar also offers real-time credit card authorization and processing services; a variety of ad enhancement tools, including photos, borders, graphics and shading; e-mail renewal notices and comprehensive management reports.

“We are pleased to further expand our presence beyond the borders of the United States into new markets,” said Leslie Bernhard, president and chief executive officer of AdStar, Inc. “Like their U.S. counterparts, Canadian newspapers are dealing with the multiple opportunities associated with the growth of the Internet, as well as the challenges of online competition. Our technology has proven that it can expedite and facilitate the ad placement process for advertisers by increasing the size and value of ads placed per transaction and creating a variety of revenue-generating opportunities for publishers. We are confident that it will work equally well for Pacific Newspapers and its advertisers.”

Once created on the Web, ads will flow through AdStar’s XML Gateway platform to the newspapers’ classified advertising front-end publishing systems and/or Web sites. AdStar’s Web-based ad-transaction technology extends classified advertising “self-publishing” opportunities for newspapers by placing the power of ad creation, scheduling and payment directly upon advertisers.

A daily newspaper since 1912, The Vancouver Sun has an average weekday circulation of more than 180,000 and nearly 220,000 on Saturday. The Province is B.C.’s oldest daily and second-largest newspaper with a daily circulation of more than 150,000.

About AdStar, Inc.

AdStar, Inc. is the 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 and web-based ad transaction services, as well as payment processing and content processing solutions that are provided through its Edgil Associates subsidiary, the industry’s largest supplier of automated payment processing services. AdStar’s ad transaction infrastructure powers classified ad sales for more than 40 of the largest newspapers in the United States, 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 at more than 100 of the nation’s leading newspaper and magazines. AdStar is headquartered in Marina del Rey, Calif., and its Edgil office is located in Billerica, Mass. For additional information on AdStar, Inc., visit http://www.adstar.com/.

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, jbaudo@adstar.com

AdStar Media Contact: Kevin Wilson, 513-898-1008, kwilson@kevinwilsonpr.com

AdStar, Inc.

CONTACT: Jeff Baudo of AdStar, Inc., +1-310-577-8255, jbaudo@adstar.com;or Media, Kevin Wilson, +1-513-898-1008, kwilson@kevinwilsonpr.com, forAdStar, Inc.

Web site: http://www.vancouversun.com/

Web site: http://www.theprovince.com/

Web site: http://www.adstar.com/