SEPARATION AGREEMENT AND RELEASE


       This   Separation   Agreement  and  Release   ("Separation
Agreement"), dated this June 12th, 2003, shall be effective as of
June  30th,  2003 (the "Effective Date"), by and  between  Comtex
News  Network,  Inc.  (the "Employer") and  C.  W.  Gilluly  (the
"Employee").

      WHEREAS, Employee is employed by the Employer and holds the
title  of  Vice  Chairman of the Board of Directors,  an  officer
position with Employer; and

      WHEREAS, the Employee has elected to resign as an  employee
and Vice Chairman of the Board of Directors, effective as of June
30, 2003;

     NOW,  THEREFORE,  in  consideration of the  promises  herein
stated and other good and valuable consideration, the receipt and
adequacy of which is acknowledged by each of the parties and  who
intend  to  be  legally bound by this Separation  Agreement,  the
parties state and agree as follows:

1.    Termination  of  Employment.  The parties  hereto  mutually
agree  that the Employee's employment shall be terminated  as  of
the effective date hereof.  Employee further agrees to resign  as
Vice  Chairman of the Board of Directors as of the effective date
hereof.

2.    Effect  of  Termination.  It is  agreed  that  a  severance
payment of $26,777.00 is payable by Employer to Employee, at such
time   and  in  such  installments  as  determined  in  the  sole
discretion  of  the Employer, but no later than  June  30,  2007.
Employee  shall also be entitled to elect continuing health  care
coverage  under  Employer's health plan, at  Employee's  expense,
subject  to  the  requirements of Title  X  of  the  Consolidated
Omnibus Budget Reconciliation Act of 1985, Internal Revenue  Code
section 4980B, and subsequent legislation ("COBRA").  The parties
hereto  hereby  waive and release each other  from  any  and  all
causes  of actions, debts, claims and liabilities, whether  known
or  unknown, which either party now has or may have in the future
against the other, except as otherwise provided herein.

3.    No Effect on Board Position.  This Separation Agreement  is
not  intended  and  shall not be construed as  a  termination  by
Employee of his position as a member of the Board of Directors of
Employer  and  Employee shall remain a member  of  the  Board  of
Directors of employer for his duly elected term.

4.    Counterparts.  This Separation Agreement may be executed in
one  or  more  counterparts, each of which  shall  be  deemed  to
constitute an original.

5.    Governing Law.  This Separation Agreement shall be governed
by,   and  interpreted  in  accordance  with,  the  laws  of  the
Commonwealth of Virginia, without regard to the conflict  of  law
principles thereof.

IN   WITNESS  WHEREOF,  the  parties  hereto  have  caused   this
instrument  to  be  executed on this 12th day of  June  2003,  in
counterparts, with an Effective Date as defined hereinabove.


                                   COMTEX NEWS NETWORK, INC.


Date: June 12, 2003                By:/S/ STEVE ELLIS
                                   ----------------------------
                                   Steve Ellis, Chairman of the
                                   Board
                                   Acting on Behalf of the Board
                                    of Directors


Date: June 12, 2003                EMPLOYEE


                                   By:/S/ C.W. GILLULY
                                   ----------------------------
                                        C. W. Gilluly

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