AdStar Raises Approximately $595,000 From the Exercise of Warrants

AdStar Raises Approximately $595,000 From the Exercise of
Warrants 


MARINA DEL REY, Calif., Jan. 6  /PRNewswire-FirstCall/ -- AdStar, Inc.
(NASDAQ:ADSTNASDAQ:ADSTW) today announced that it has raised $594,872 from the
exercise of 699,850 warrants at $0.85 per warrant.  The warrants had been
issued to Paulson Investment Company, or certain of its officers and employees,
primarily as compensation for their services in prior securities offerings and
originally had exercise prices ranging from $0.75 to $1.87 and expiration dates
ranging from September 25, 2005 to March 31, 2009.

According to Leslie Bernhard, chief executive officer of AdStar, proceeds from
the warrant exercise were primarily used to increase the company's working
capital, which had declined due to deposits and other expenses associated with
proposed acquisitions and related expansion activities that had not been
consummated by year-end 2004.

About AdStar, Inc.

AdStar, Inc. (NASDAQ:ADSTNASDAQ:ADSTW) 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, the
Newspaper Association of America's bonafideclassifieds.com, 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
North Chelmsford, 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, 
   AdStar Media Contact: Kevin Wilson, 513.885.5520,
                         

DATASOURCE: AdStar, Inc.



CONTACT:  Jeff Baudo of AdStar, Inc., [phone], ;

or Media, Kevin Wilson, [phone], , for

AdStar, Inc.



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

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