TORONTO and BOSTON – May 17 , 2005 – Avotus® Corporation (TSX Venture: AVS) today announced that its common shareholders, at its annual meeting of shareholders which took place yesterday at Avotus’ offices, approved a going private transaction to be accomplished via a common share consolidation of one new Avotus common share for each 1,850,000 existing Avotus common shares. The common share consolidation was approved by holders of 99.89 % of the common shares present at the annual meeting or voting by proxy, according to Computershare Investor Services. The common share consideration was also approved by holders of 99.77% of those common shares that will be redeemed following the consolidation, present at the annual meeting or voting by proxy.

Avotus plans to immediately file an application with the TSX Venture Exchange to delist its common shares. It is anticipated that the Avotus common shares will be delisted as of the end of the trading day on Friday, May 20, 2005. Avotus also plans to file an amendment to its constating documents shortly after the delisting of its common shares in order to effect the consolidation. Upon filing of the amendment to the Avotus constating documents, Avotus plans to apply to applicable provincial securities commissions to cease to be a reporting issuer in the jurisdictions it currently has that status. Avotus anticipates this entire process will take two to three weeks to complete.

If you are a holder of Avotus common shares, following the effectiveness of the common share consolidation, your Avotus common shares will represent a right to receive $0.25 per pre-consolidation common share. In order to redeem your Avotus common shares for cash, you will need to complete and submit the Letter of Transmittal, in accordance with the directions set forth therein, that you received in your management information circular on or around April 20, 2005. If you have any questions or require a copy of the Letter of Transmittal, please contact Leslie Haddow of Avotus Corporation at mailto:leslie.haddow@avotus.com, or (905) 568-6918.

About Avotus

Avotus is the leader for groundbreaking technology-based telecommunications and data expense management (TEM) solutions. The company has a 20-year history of empowering companies of all sizes to gain lasting control over their complete worldwide communications environment through the effective management of their voice, data and converged communications spend. Only Avotus brings together e-Procurement, expense, and usage management into a fully integrated solution. Avotus provides dramatic and verifiable cost savings of as much as 50% of an enterprise’s current communications spend and a triple digit in-year ROI. Combining technology, automation, communications experts, and industry best practices, Avotus solutions make it possible to not only realize significant spend reduction but to continuously verify and permanently implement all cost and process improvements. Avotus offers the widest, deepest and most flexible solution set available including an onsite enterprise implementation, a hosted Application Service Provider (ASP) model, and a completely outsourced value-added managed solution.