EMPLOYMENT AGREEMENT

      THIS AGREEMENT ("Agreement") is made and entered into as of
the 25th day of April 2003 (the "Effective Date"), by and between
Comtex   News   Network,  Inc.,  a  Delaware   corporation   (the
"Company"), and Raymond P. Capece ("Executive").

                            Recitals:

     A.     The  Company  desires  to  retain  Executive  as  its
President and Chief Executive Officer on the terms and conditions
hereinafter set forth; and

     B.    Executive desires to commence such employment, on  the
terms and conditions hereinafter set forth.

      NOW,  THEREFORE, in consideration of the promises  and  the
mutual  covenants set forth herein, the parties hereto  agree  as
follows:

     1.   Employment and Term.

          a.    Employment.  The Company hereby agrees to  employ
Executive  and Executive hereby accepts employment  as  President
and  Chief  Executive Officer of the Company under the conditions
hereinafter specified.

          b.    Term.  Subject to earlier termination as provided
in Paragraph 5, the initial term of this Agreement shall commence
on  the  Effective Date of this Agreement and  end  on  the  date
twelve  (12) months thereafter; provided, however, this Agreement
may  be  renewed for two successive terms of twelve  (12)  months
each,  commencing  on  the first and second  anniversary  of  the
Effective Date.  The Board of Directors shall notify Executive in
writing  of  its election to renew this Agreement at least  sixty
(60)  days prior to the expiration of the original or any renewal
term.

     2.   Duties.

          a.    Executive  shall  serve as  President  and  Chief
Executive Officer of the Company.  Executive shall perform all of
his  duties  diligently and faithfully, and shall report  to  the
Chairman and the Board of Directors.  Executive shall be  invited
to  attend all meetings of the Board of Directors of the Company.
Within  ninety (90) days of the Effective Date of this Agreement,
Executive shall be appointed to the Board of Directors.

          b.    Executive  shall at all times devote  his  entire
working  time,  attention, energies, efforts and  skills  to  the
business  of  the Company, and shall not, directly or indirectly,
engage in any other business activity, whether or not for profit,
gain  or  other pecuniary advantages, without the express written
permission   of  the  Company.   Notwithstanding  the  foregoing,
Executive  may  serve  on  the board of  directors  of  any  non-
competing company and receive compensation therefore, provided he
obtains the advance written approval of the Board of Directors of
the Company.

     3.   Compensation.

          a.    Base  Salary.   The Company shall  pay  Executive
basic  compensation of One Hundred Seventy-Five Thousand  Dollars
($175,000) per year ("Base Salary").  Such Base Salary  shall  be
payable  biweekly.   In  the  event this  Agreement  is  renewed,
Executive  shall  be entitled to an increase in Executive's  Base
Salary  for  the  applicable renewal term in an amount  which  is
commensurate, on a percentage basis, with the increases, if  any,
in  the  base annual salaries awarded to other executive officers
of  the  Company for such period, as determined by the  Board  of
Directors of the Company (and such increase in Base Salary  shall
become the Base Salary).  Any incentive compensation that may  be
paid to Executive from time to time shall have no impact upon the
Base Salary.

          b.   Signing Bonus.  As an incentive to enter into this
Agreement,  the  Company shall pay Executive a  one-time  signing
bonus   of  Ten  Thousand  Dollars  ($10,000.00),  less  standard
withholdings  and deductions, payable after thirty (30)  days  of
service under this Agreement.

          c.    Incentive Stock Options.  The Company shall grant
Executive  stock options ("Stock Options") to acquire Six-Hundred
Thousand  (600,000)  common shares of  the  Company's  stock,  in
accordance  with  the Company's Stock Option Plan  (the  "Plan"),
with  an exercise price per share equal to the Fair Market  Value
of  the common shares as of the date of grant.  For this purpose,
Fair  Market Value equals the average of the trailing 10 day high
and  low bids (as specified in the Plan).  Provided Executive  is
employed  by the Company on the date of vesting, Executive  shall
vest in such Stock Options pursuant to the following schedule:

Length of Service From Effective Date   Number of Vested Options
     90 Days                                      150,000 shares
     12 Months                                    150,000 shares
     24 Months                                    150,000 shares
     36 Months                                    150,000 shares

      Upon  the occurrence of any of the following within one  of
the  time  periods listed under Length of Service From  Effective
Date  in  the table immediately above, the unvested options  only
for  the  number  of  shares associated with such  specific  time
period  shall accelerate as to vesting and shall be deemed vested
at the date of occurrence of said event:

                (i)  Executive is required to work more  than  50
miles  outside  of the current Company headquarters,  located  at
Alexandria, Virginia, on a regular basis;

               (ii) Change of Control: A "Change of Control"
shall have occurred if:

                    (a) Any "person" within the meaning of
Section 14(d) of the Securities Exchange Act of 1934 (the
"Exchange Act"), other than the Company, a subsidiary or
"affiliate" as defined under the Exchange Act, any employee
benefit plan sponsored by the Company or any subsidiary of the
Company, becomes the "beneficial owner" as defined in Rule 13d-3
under the Exchange Act, directly or indirectly, of 51% or more of
the combined voting power of the securities of the Company
entitled to vote in an election of directors to the Board, and
Executive's employment with the Company is terminated by the
Company at any time during the remainder of such period during
which vesting would otherwise have occurred but for such
termination (the "Protection Period"); or

                    (b) A merger or equivalent combination occurs
after which 51% or more of the voting stock of the surviving
Company is held by persons other than former stockholders of the
Company, and Executive's employment with the Company is
terminated by the Company at any time during the Protection
Period; or

                    (c) The sale, assignment, transfer or other
disposition of assets of the Company having a value in excess of
50% of the total assets of the Company, and Executive's
employment with the Company is terminated by the Company at any
time during the Protection Period.

           d.    Incentive  Cash Bonus.  The  Company  shall  pay
Executive an annual incentive cash bonus pursuant to the  formula
attached  hereto  as  Schedule A. Within 45 days  following  each
fiscal  quarter  end,  the Company will estimate  the  cumulative
incentive  cash  bonus due to Executive for the  fiscal  year-to-
date,  less  a  reserve amount equal to 20% of such  amount  (the
"Estimated  Cumulative Incentive Cash Payment"), except  for  the
fourth  fiscal quarter whereupon no such reserve amount shall  be
deducted.  Within 10 days thereafter, the Company will pay to the
Executive  the Estimated Cumulative Incentive Cash Payment,  less
the  total  of  all  prior  Estimated Cumulative  Incentive  Cash
Payments made thus far for the fiscal year in question.

      For any year that does not fall entirely within the term of
employment,  the bonus for that year shall be prorated  according
to  the  following  formula:  the bonus  for  that  entire  year,
calculated  according to the formula attached hereto as  Schedule
A,  multiplied by a fraction, the numerator of which shall be the
number  of  days  in  that  year that fall  within  the  term  of
employment and the denominator of which shall be 365.

      If  Executive's employment be terminated at  other  than  a
fiscal year end, the Incentive Cash Bonus due to Executive  shall
be  calculated by replacing the annual Plan amounts stipulated in
Schedule A with the year-to-date Plan amount that corresponds  to
the  month  ended immediately preceding such date of  termination
(the  Year-to-Date Plan) and comparing such Year-to-Date Plan  to
the  Company's  actual revenue and profitability performance,  as
stipulated  in  Schedule  A, through  the  comparable  month  end
immediately  preceding  such date of termination.  The  Executive
need not be employed by the Corporation at the time of payment in
order  to  receive any bonus to which the Executive is  otherwise
entitled pursuant to the terms of this Paragraph 3d.

          e.   Reimbursement of Reasonable Expenses.  The Company
shall  pay  or reimburse Executive for all reasonable travel  and
other  reasonable expenses incurred by Executive  performing  his
obligations under this Agreement.

     4.   Benefits.

          a.   Retirement and/or Pension Plan(s). Executive shall
be  entitled  to  participate in any  retirement  and/or  pension
plan(s)   offered  to  the  Company's  employees   generally   in
accordance  with  the  terms of such  plan(s),  as  they  may  be
modified at the Company's discretion from time to time.

            b.    Insurance.   Executive  shall  be  entitled  to
participate in any health, medical, life and disability insurance
plans  offered to the Company's employees generally in accordance
with  the terms of such plan(s), as they may be modified in their
application  to  all employees at the Company's  discretion  from
time to time.

           c.   Paid Sick and Personal Leave.  Executive shall be
entitled  to  a maximum of ten (10) days of paid sick  leave  per
year,  which shall accrue in accordance with the Company's policy
applicable  to employees generally.  Executive shall also  accrue
two (2) additional personal days per calendar year.

          d.   Paid Vacation. Executive shall be entitled to four
(4) weeks of paid vacation during each calendar year; however, in
no  event  shall Executive use more than two contiguous weeks  at
any  one time.  Accrued, but unused, vacation may be carried over
from one year to the next in accordance with the policy in effect
for the Company employees in general.

     5.   Termination of Employment by the Company.

          a.   Termination for Cause. The employment of Executive
under this Agreement may be terminated for "Cause" by the Company
at any time by action of the Board upon the occurrence of any one
or   more  of  the  following  events:   (i)  Executive's  fraud,
dishonesty,  gross  negligence  or  willful  misconduct  in   the
performance of his duties hereunder, including willful failure to
perform such duties as may properly be assigned him hereunder; or
(ii)  Executive's  material  breach  of  any  provision  of  this
Agreement.   Executive  shall  be notified  in  writing  of  such
termination,  which notification shall specify the grounds  cited
by  the Board for such termination for cause.  Any termination by
reason  of the foregoing shall not be in limitation of any  right
or  remedy  which  the Company may have under this  Agreement  or
otherwise.

          b.   Termination Without Cause.

               (i)   The   Company   may  terminate   Executive's
employment  without  cause and at any time.  Executive  shall  be
notified  in  writing of such termination  on  or  prior  to  the
effective date of such termination.

               (ii)   If  Executive's  employment  is  terminated
without  cause,  and  Executive waives  all  claims  against  the
Company  relating  to  or arising out of his  employment  or  the
termination of his employment by executing a general  release  of
such claims, Executive shall receive, as severance pay, an amount
equal to his Base Salary divided by twelve (12) (as defined,  his
"Monthly Base Salary") and multiplied by the appropriate multiple
set  forth  below for Executive's length of service  at  time  of
termination:

   Length of Service                   Severance Compensation
   Less than 90 Days                                  Zero
   90 Days to less than First 6 Months                Two
   First 6 Months to less than 12 Months              Three
   First Year to less than 24 Months                  Five
   Second Year to less than 36 Months                 Six

     Such  amount  shall  represent  the  agreed-upon  liquidated
damages  for  any loss, cost, expense or damages  suffered  as  a
result  of  such  termination,  as  well  as  consideration   for
Executive's execution of a General Release of all claims  against
the Company.  The Company shall pay such amount to Executive on a
bi-weekly  basis, less standard withholdings and deductions,  and
in  an amount equal to the Executive's then current rate of  Base
Pay  until  such  time  as the severance obligation  due  to  the
Executive by the Company has thereby been extinguished, with  the
exception that the Executive may elect to receive up to  100%  of
this  payment in a lump sum not later than 30 days following  the
date of termination, in the event that the lump-sum payment shall
be  used exclusively for the purposes of exercising vested  stock
options in the Corporation.

          c.    Resignation  from  Board.   Executive  agrees  to
resign  from  the  Board of Directors of the Company  immediately
upon  his termination of employment, whether such termination  is
voluntary or involuntary, with or without cause.

     6.   Protection of the Company.

          a.    Non-Compete.  To induce the Company to enter into
this Agreement, Executive agrees, during the term hereof and  for
a  period of one year after the termination of his employment for
any reason, not to directly or indirectly engage or be interested
(as  owner,  partner,  shareholder,  director,  employee,  agent,
consultant  or otherwise), with or without compensation,  in  the
rental, sale, or service of products of the type rented, sold  or
serviced by the Company ("Products") within any geographical area
in  which  the  Company or any of its subsidiaries is  conducting
business or actively planning to conduct business as of the  date
of  such  termination  ("Subject Area").  Executive  acknowledges
that  the  provisions  of  this  Paragraph  are  reasonable   and
necessary  for the protection of the Company and its subsidiaries
and  that  the  Company and its subsidiaries will be  irrevocably
damaged   if  such  provisions  are  not  specifically  enforced.
Accordingly,  Executive agrees that, in  addition  to  any  other
remedy to which the Company may be entitled, the Company shall be
entitled  to seek and obtain injunctive relief from  a  court  of
competent  jurisdiction for the purposes of restraining  it  from
any  actual or threatened breach of such provisions, without bond
or other security being required.  The provisions of this section
shall  survive  the  expiration or earlier  termination  of  this
Agreement.

          b.     In   the   event  that  a  court  of   competent
jurisdiction  finds Paragraph 6a. or any of its restrictions,  to
be  ambiguous, unenforceable, and/or invalid, Executive  and  the
Corporation agree that such court shall read Paragraph 6a.  as  a
whole and interpret the restriction(s) at issue to be enforceable
and  valid  to  the  maximum extent as allowed  by  law  for  the
protection of the Corporation's business interests.

          c.    If  the  court declines to enforce this Agreement
pursuant  to  Paragraph 6b. above, the Corporation and  Executive
agree  that  Paragraph  6a.  will be  automatically  modified  to
provide  the  Corporation  with the  maximum  protection  of  the
Corporation's  business interests as allowed by  law  and  to  be
bound by Paragraph 6a. as modified.

          d.     If   any   provision  of  Paragraph  6a.   shall
nonetheless be declared ambiguous, unenforceable or invalid,  the
remainder of Paragraph 6a. shall remain in full force and effect,
and  Paragraph  6a. shall remain in full force  and  effect,  and
Paragraph 6a. shall be read as if the ambiguous, unenforceable or
invalid provision was not contained herein.

            e.     Confidential  Information.   As  used  herein,
"Confidential  Information"  means  all  technical  and  business
information (including financial statements and related books and
records,  personnel  records, customer lists,  arrangements  with
customers and suppliers, manuals and reports) of the Company  and
its  subsidiaries (whether such information is owned by, licensed
to  or  otherwise  possessed by the Company or  any  subsidiary),
whether patentable or not, which is of confidential, trade secret
and/or  proprietary  character and which is either  developed  by
Executive  (alone or with others) or to which Executive  has  had
access  during his employment.  "Confidential Information"  shall
include,  but  is not limited to, information of a  technical  or
business   nature   such   as   ideas  discoveries,   inventions,
improvements, trade secretes, know-how, manufacturing  processes,
specifications, writings and other works of authorship,  computer
programs,   financial  figures  and  reports,  marketing   plans,
customer  lists  and data, and/or business plans  or  data  which
relate  to  the actual or anticipated business of the Company  or
any subsidiary or its actual or anticipated areas of research and
development.  "Confidential Information" shall also include,  but
is   not  limited  to,  confidential  evaluations  of,  and   the
confidential  use  or  non-use by  the  Company  or  any  of  its
subsidiaries of, technical or business information in the  public
domain.   Executive shall, both during and after  his  employment
with  the  Company, protect and maintain the confidential,  trade
secret   and/or   proprietary  character  of   all   Confidential
Information.  Executive shall not, during or after termination of
his  employment,  directly or indirectly,  use  (for  himself  or
another) or disclose any Confidential Information, for so long as
it  shall  remain  proprietary or protectible as confidential  or
trade  secret  information, except as may be  necessary  for  the
performance of his duties under this Agreement.  Executive  shall
deliver  promptly  to  the Company, at  the  termination  of  his
employment,  or  at  any  other time at  the  Company's  request,
without retaining any copies, all documents and other material in
his   possession  relating,  directly  or  indirectly,   to   any
Confidential   Information.   Each  of  Executive's   obligations
hereunder shall also apply to the confidential, trade secret  and
proprietary  information learned or acquired by  him  during  his
employment  from others with whom the Company or  any  subsidiary
has a business relationship.

          f.   The provisions of this Paragraph shall survive the
expiration or earlier termination of this Agreement.

     7.    Death  or Incapacitation.  In the event that Executive
dies  or, due to a physical or mental impairment, becomes  unable
to  perform  the  essential functions of  his  position  with  or
without reasonable accommodation, this Agreement shall be  deemed
terminated and Executive or his estate, as the case may be, shall
be  entitled  to  no  further salary,  compensation  or  benefits
hereunder,  except (i) any unpaid salary, incentive payments  and
vacation accrued and earned by Executive up to and including  the
date of such termination, and (ii) any disability, life insurance
or  other  benefits  to  which Executive or  his  estate  may  be
entitled  on the date of such termination in accordance with  the
terms  and  conditions of any applicable benefit plan(s)  as  set
forth in official plan documents.

     8.    Assignment.  This  Agreement  is  a  personal  service
agreement  and neither party shall have the right to assign  this
Agreement  or  any  rights or obligations hereunder  without  the
prior written consent of the other party.

     9.   Notices.  All  notices required or permitted  hereunder
shall  be  in  writing  and  shall be deemed  properly  given  if
delivered  personally or sent by certified  or  registered  mail,
postage  prepaid,  return receipt requested.  If  mailed  to  the
Company,  such notices shall be sent to their principal place  of
business,  attention: Chairman of the Board,  or  at  such  other
address  as  the Company may hereafter designate  in  writing  to
Executive.   If  mailed  to  Executive,  such  notices  shall  be
addressed to him at his home address last known on the records of
the  Company, or at such other address as Executive may hereafter
designate in writing to the Company.

     10.  Successors Bound. This Agreement shall bind  and  inure
to  the benefit of the parties hereto and their respective heirs,
personal  representatives, estates and permitted  successors  and
assigns.

     11.  Waiver. No provision hereof may be waived, except by  a
written  instrument signed by the party against whom such  waiver
is  sought to be enforced.  The failure or waiver of either party
hereto  at any time, or from time to time, to require performance
by  the  other party of such other party's obligation  hereunder,
shall  not deprive that party of the right to insist upon  strict
adherence to such obligation at any subsequent time.  Each  party
hereto  agrees that any waiver of its rights arising out  of  any
breach  of  this  Agreement  by the  other  party  shall  not  be
construed as a waiver of any subsequent breach.

     12.  Amendment.  No  provision  hereof  may  be  altered  or
amended,  except  by  a written instrument signed  by  the  party
against whom such alteration or amendment is to be enforced.

     13.  Governing  Law. The parties agree that  this  Agreement
shall  in all respects be construed, interpreted and enforced  in
accordance  with  and  governed by  the  laws  of  the  State  of
Delaware,  without regard to the principles of conflict  of  laws
thereof.

     14.  Arbitration.  Whenever a "dispute" arises  between  the
parties   concerning   this   Agreement   or   their   employment
relationship  (other than a dispute arising under  Paragraph  6),
including without limitation the termination thereof, the parties
shall  use their best efforts to resolve the "dispute" by  mutual
agreement.  If such a "dispute" cannot be so resolved,  it  shall
be submitted to final and binding arbitration to the exclusion of
all other avenues of relief.  For the purposes of this paragraph,
the term "dispute" means all controversies or claims relating  to
terms,  conditions or privileges of employment, including without
limitation   claims  for  breach  of  contract,   discrimination,
harassment,  wrongful  discharge, misrepresentation,  defamation,
emotional  distress or any other personal injury,  but  excluding
claims  for  unemployment compensation or worker's  compensation.
The  dispute  shall  be  submitted to  the  American  Arbitration
Association  ("AAA") at an office located in the Commonwealth  of
Virginia  and  adjudicated in accordance  with  AAA's  Rules  for
Commercial  Arbitration  then in effect.   The  decision  of  the
Arbitrator  must be in writing and shall be final and binding  on
the  parties,  and  judgment may be entered on  the  arbitrator's
award in any court having jurisdiction thereof.  The expenses  of
the  arbitration shall be borne equally by the parties, and  each
party  shall  be  responsible  for  his  or  its  own  costs  and
attorneys'  fees.  The Arbitrator shall be deemed to possess  the
powers  to  issue  mandatory  orders and  restraining  orders  in
connection with such arbitration; provided, however, that nothing
in  this  paragraph shall be construed so as to deny the  Company
the  right  and power to seek and obtain injunctive relief  in  a
court  of equity for any breach or threatened breach by Executive
of  any  of  the  provisions contained in  Paragraph  6  of  this
Agreement.  This paragraph shall survive the termination of  this
Agreement.

     15.   Severability.  In the event that any provision of this
Agreement conflicts with the law under which this Agreement is to
be  construed,  or  if  any such provision  is  held  invalid  or
unenforceable  by  a  court  of  competent  jurisdiction  or   an
arbitrator,  such provision shall be deleted from this  Agreement
and  the Agreement shall be construed to give full effect to  the
remaining provisions thereof.

     16.   Headings  and  Captions.  The paragraph  headings  and
captions contained in this Agreement are for convenience only and
shall  not be construed to define, limit or affect the  scope  or
meaning of the provisions hereof.

     17.    Entire   Agreement.   This  Agreement  contains   and
represents the entire agreement of the parties and supersedes all
representations  or understandings, oral or written,  express  or
implied  with  respect  to  the  subject  matter  hereof.    This
Agreement  may  not be modified or amended in any way  unless  in
writing signed by both Executive and the Chairman of the Board of
the  Company.  No representation, promise or inducement has  been
made  by  either  party  hereto that  is  not  embodied  in  this
Agreement,  and  neither party shall be bound or liable  for  any
alleged  representation, promise or inducement  not  specifically
set forth herein.

     IN   WITNESS   WHEREOF,  the  parties  have  executed   this
Employment Agreement effective on the date and year first written
above.


                                   COMTEX NEWS NETWORK, INC.

                              By:  /S/ STEPHEN W. ELLIS
                                   Stephen W. Ellis
                                   Chairman of the Board


                                   EXECUTIVE

                              By:  /S/ RAYMOND P. CAPECE
                                   Raymond P. Capece
<PAGE>
<TABLE>
                                   Schedule A

<S>               <C>                                             <C>
Incentive Cash     Components (where X, Y and Z are > 0 only):     Payable within 30 days
Bonus Formula                                                      after FQE (20% reserve
                                                                   withheld only for Q1 - Q3)
                   A. Where W = Total Revenue:
                      If Act. W = Plan W                           $65,000;
                      If 90% Plan W = Act. W < 100% Plan W         $52,000 (80%);
                      If Act. W < 90% Plan                         Zero.

                   B. Revenue Above Plan from Existing Products:   2.0% times X
                      For X = Act. Rev. less Plan Rev.

                   C. Revenue Above Plan from New Products:        3.5% times Y
                      For Y = Act. Rev. less Plan Rev.

                   D. Total EBITDA:                                4.5% times Z.
                      For Z = Act. EBITDA less Plan EBITDA.

</TABLE>
<PAGE>