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                                  News Release
For Immediate Release
Contact: Gilbert Steinberg- Treasurer

    516-222-2595

                 Astrosystems Announces $2.90 Cash Distribution

         Hockessin,  Delaware,  January 24, 2000. Astrosystems  Inc.(OTCBB:ASTZ)
today announced that a cash  distribution of $2.90 per share will be paid to all
shareholders  of record as of the close of business on Feb 7, 2000. In addition,
the Company announced that, as provided for in its Plan of Complete  Liquidation
and Dissolution approved by stockholders on February 2, 1996,  Astrosystems will
be dissolved on Feb 8, 2000 and all  remaining  assets and  liabilities  will be
transferred to a liquidating trust. All Astrosystems stock outstanding as of the
close of business on Feb 7, 2000 will  represent  a  nontransferable  beneficial
interest in the liquidating trust and holders of such shares will be entitled to
receive pro rata  distributions  in  liquidation  of the trust.  All trading and
stock transfers will be discontinued after Feb 7, 2000.

         It is anticipated that approximately $9,900,000, or approximately $1.67
per share, will be transferred to the liquidating trust and held as a reserve to
cover both known and unanticipated liabilities.  The only known and quantifiable
liability at the present time is an estimated  tax liability of  $4,300,000,  or
approximately  $.72 per share.  The trust will  continue  to hold all  remaining
assets as a reserve against claims that may be made. It is currently anticipated
that complete liquidation of the trust will occur in 2003. At that time assuming
no further  liabilities exist, the remaining assets will be distributed on a pro
rata basis to all holders of interest in the liquidating trust.

         This  release  includes  forward  looking  statements   concerning  the
Company's  intent,  belief  or  current  expectations  with  respect  to  future
distributions  to  shareholders.   Such  forward  looking   statements  are  not
guarantees  of future  action and  involve  risks and  uncertainties,  including
unanticipated  claims  brought  against  the  Company,  that  may  cause  actual
distributions to differ materially from those currently  anticipated to be made.
The Company does not  undertake  any  obligation to update or revise any forward
looking statements.

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  ASTROSYSTEMS, INC. o P.O. Box 1639 o HOCKESSIN, DE 19707 o tel: 302-652-3115