EXHIBIT 99

Versatility Inc. Announces postponement of Third Quarter Financial Results And
Restatement of certain financial Results; Resignation of Chairman and CEO;
Filing of Securities Class Action Lawsuit

Thursday, March 12, 1998 04:08 PM


FAIRFAX, Va., March 12 /PRNewswire/ -- Versatility Inc. (Nasdaq: VERS) today
announced that it has temporarily postponed reporting final operating results
for the third quarter of fiscal 1998 and that it anticipates that it will not
file its Quarterly Report on Form 10-Q for the third quarter on time.
Versatility also announced that it expects to restate its earnings for fiscal
1997 and the first and second quarters of fiscal 1998.

The Company has postponed the release of its third quarter results while it
examines, under the supervision of its Audit Committee, the accounting treatment
of certain transactions. The Company said the issues include revenue recognition
criteria and timing, bad debt reserves and other matters. The Company expects
that these issues will affect fiscal 1997 results as well as the first and
second quarters of fiscal 1998. The Company expects to file its Form10-Q for the
third quarter of fiscal 1998 and any required restated quarterly or annual
reports as soon as possible after its examination is complete. Previously issued
financial statements for fiscal 1997 and interim periods for fiscal 1998 and any
related independent auditor's reports should not be relied upon.

The Company expects that the restatement of the financial results for the
periods indicated will decrease the revenue recognized during those periods and
will result in operating losses for each period.

Versatility also announced the resignation of Ronald Charnock as Chairman, Chief
Executive Officer and a Director of the Company. Marcus Heth also stepped down
as a Director, although he will continue with the Company as Senior Vice
President.

Paul Zoukis, Versatility's recently appointed President and Chief Operating
Officer, was elected to the Board of Directors, and will assume leadership of
the Company's management team. Mr. Zoukis said, "We are doing everything we can
to take all appropriate actions to investigate these matters and to report our
operating results as quickly as possible. The situation has not affected the
performance of our products or our commitment to our customers."

Versatility also announced that it, among other parties, has been named as a
defendant in a securities class action lawsuit filed in the United States
District Court for the Southern District of New York. The complaint alleges,
among other things, that the defendants made misstatements to the investing
public, relating primarily to its discontinued


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CallCenter product. Versatility believes that the allegations in the complaint
are without merit and intends to vigorously contest them.

About Versatility

Versatility Inc., based in Fairfax, Virginia, is a leading provider of
enterprise-wide customer care solutions for teleservicing and telesales call
center solutions in the services industries. Versatility is traded on Nasdaq
under the symbol VERS and can be reached at 1-800-VERSATILE (1-800-837-7284
extension: 111) or via the World Wide Web at http://www.versatility.com.

Statements other than statements of historical information contained in this
release including statements regarding expected restatement of previously-issued
financial information may constitute forward-looking statements which are
subject to risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements discussed herein. Those risks
involve the preliminary nature of the Company's investigation and the need to
complete that investigation as well as those other factors discussed from time
to time in the Company's public reports filed with the Securities and Exchange
Commission, such as those discussed under "Risk Factors" included in the
registration of the Company's Form S-1, filed December 13, 1996 and discussed
under "Factors Which May Effect Future Operating Results" in the Company's
quarterly report on Form 10-Q for the quarter ended October 31, 1997.

SOURCE Versatility Inc.

CONTACT: Ken Nelson, Chief Financial Officer of Versatility, 703-591-2900



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