California News Tech Announces Morning CEOcast to Discuss the Growth Plans for MediaSentiment(TM) Services

SAN FRANCISCO, CA -- (MARKET WIRE) -- 08/03/2005 -- California News Tech (OTC BB: CNTE), innovator in tracking the sentiment behind news media, and giving an edge to information-savvy investors, announced today that an interview will be held this morning with the Company's president and chief executive officer, Marian Munz. The interview may be heard today, August 3rd, at 10:30 AM PST on the web at CEOcast.com. Additionally, a transcript of the interview will be available on California News Tech's website, www.MediaSentiment.com, by tomorrow morning. In the interview Mr. Munz discusses the Company's products, including MediaSentiment™ Heads Up, which tracks companies based on earnings reports-generated investor sentiment, and strategy for growth as a leader in researching media sentiment about the stock market.

CEOcast is a premier source of original and syndicated streaming broadcast interviews of Chief Executive Officers at public and private news-making companies. CEOcast's programming is distributed to millions of on-line investors at over 700 financial web sites as well as to more than 20,000 portfolio managers, buy-side analysts and traders at over 3,300 North American institutions. CEOcast's content is also disseminated to more than 7,000 investment research professionals representing over 425 institutions. The interview can be heard at www.ceocast.com. Hit "Register Free" and insert your name and e-mail address, and make up a password. Then go to the "Register" box and click it.

About California News Tech

This press release and the CEOcast interview contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding California News Tech's growth strategy, introduction of new products and the impact of the new products and the expansion on California News Tech's leadership, benefits to customers and future growth. These forward-looking statements involve risks and uncertainties. Factors that could cause actual results to differ materially from those predicted in any such forward-looking statement include California News Tech's timely development and customers' acceptance of California News Tech's media research products, rapid technological changes in the industry, growth of the media research market, increased competition and adverse changes in general economic conditions. These and other risks are detailed from time to time in California News Tech's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its report on Form 10-K for its fiscal year ended June 30, 2005.

More information at: www.mediasentiment.com or 415.861.3421.

Media contact:
Marian Munz
415.205.1695
Email Contact

Interview content:

1. Company and its Mission

California News Tech is the creator of MediaSentiment trademark, the only service of its kind available on the market. For the first time, users have a powerful tool which revolutionizes the way research is being done online.
For instance, MediaSentiment's HeadsUp gives an almost instantaneous measurement of the sentiment resulting from a company's earnings release. Individual and professional investors as well as active traders can now have a tool in their arsenal to make better investment decisions, in a timely manner.
Our mission is to take the web from a search era it into the research era.
You know, in my opinion, Google has brought the internet text search to maturity. They are doing a great job at helping users find web sites.
However, I personally believe that within the next 18 months, internet users will come to expect a lot more from their tools than just text search. They will come to expect decision support tools to help them to make better decisions in a timely fashion.
That is where MediaSentiment comes in.
As we speak, our MediaSentiment tools are helping to tremendously increase the odds of success when making an investment decision.
As an example, an Average investor considering 4 stocks, before applying any other knowledge, would have a 6% chance of success. With MediaSentiment that chance can go up by 300%, even at a 50% correlation; but we have shown correlations as high as 94%. That kind of performance could result even before applying any other type of judgment or considering another information source.
MediaSentiment enables a fantastic paradigm shift and investors everywhere must immediately consider this set of tools.

2. MediaSentiment:

Investors rely on the news media more than they realize to make decisions about stocks. The common knowledge is that stocks trade on fundamentals. However, whether it's predicting how an individual company will perform, or trying to anticipate how other investors will behave and how the market will move, investors look to the news media.
There is no secret that every single online trading system includes, as a major component, a news sub-system.
Sometimes, something said in the news can even have a subconscious effect on the choices investors make, and understanding these influences can be very critical when making a buy or sell decision.
Until now, however, there hasn't been a tool to help to systematically, timely and efficiently look at all of the vast amounts of information available.

What it is and What it does:
a) Like never before, California News Tech's MediaSentiment A Heads Up service uses artificial intelligence to track stock market sentiment. This powerful research tool evaluates earnings and news media reports, and within seconds, rates them based on the positive or negative sentiment their message creates.

b) It then makes a thumbs up or thumbs down recommendation that investors can use when they make buy and sell decisions, right after releases, beating out slower investors who don't have this information. MediaSentiment research have shown correlations in the 80th percentile between Heads Up earnings reports recommendations and next session stock highs and lows. MediaSentiment subscribers are also able to research sentiment about companies over time, looking at measurements of the amount of negative, neutral and positive press they generate over time. This is another service only available through California News Tech.

Giving Investors a Competitive Edge:
c) These unique services offer an unprecedented competitive advantage to investors, in terms of investment research speed while, overall, increasing their chances of success.

3. MediaSentiment Market:

- Initial Market and Size
Our initial focus is on the online investor market segment.
Celent research estimates that there are more than 25 million retail accounts with online brokers alone. Also, there are perhaps 1 million investors who trade at least 50 times a year. Many in the industry believe that this segment is poised to grow.

Research shows, you know, that the top priority for the online investor has become the ability to have access to sophisticated analytical tools that provide information that is timely and useful. The major online brokerage houses have seen the demand for better tools grow tremendously over the last few years.
Online investors having accounts with such firms as Fidelity, Charles Schwab, E*TRADE, Ameritrade, BrownCo or Scottrade could greatly benefit from MediaSentiment's set of tools.

- Future Markets
MediaSentiment technology will be used for other markets as well. As a case study, MediaSentiment was used this last fall by Stanford University's Political Communication Lab to identify Voter Attention Share - trends in the US electronic media coverage of presidential election issues.
California News Tech used the findings to show in September that President Bush would likely win re-election based on the number of news stories that focused on Iraq. Likewise, MediaSentiment will most likely be able to predict what toys will be hot sellers at Christmas-time, and what retailers might expect in terms of shortages, all based on the sentiment of their media coverage.
Being the first to know has its advantages. I believe that the market opportunities are huge.

4. Company's Growth plans

- Profitability is the #1 target.
With the announcement of the first release of the MediaSentiment set of tools, we are ready to embark on a fast path to profitability.
Our value proposition is so powerful and unique. We need to communicate the power of our tools to investors everywhere. Once investors get a taste of what MediaSentiment can do for them, I believe that it'd be hard for them to go back to the old way of doing business.
It would be like, you know, using a tape recorder when you can have an iPod.
We are launching full speed on the path to profitability; nothing is ever certain you know, but I believe that all things going the way they should, profitability should be achievable within the next two quarters.

- Exponential growth is target #2.
Like with any new technology, I see that there will be a tipping point which will be bringing us towards exponential growth. We have our internal estimates of what the number of users should be to get us to that point.
The goal is to very rapidly become the leading service within the online media sentiment research category, for both individual and corporate users.

With an expanding range of research tools, fresh financial commentary and analysis, in addition to a wide range of research applications outside of finance, the door for a bright future is wide open for California News Tech’s set of tools.