EMPLOYMENT AGREEMENT
      
          This Employment Agreement ("Agreement") dated as of
      October 1, 1998, is by and between COMTEX SCIENTIFIC
      CORPORATION, a Delaware corporation, with its principal
      executive offices at 4900 Seminary Road, Suite 800,
      Alexandria, Virginia 22311 ("Company"), and CHARLES W. TERRY,
      whose address is 13201 Dodie Drive, Darnestown, Maryland 20878
      ("Employee").
      
                          W I T N E S S E T H:
      
          WHEREAS, the Company and the Employee wish to provide for
      the employment of the Employee in an executive capacity in
      accordance with the provisions of this Agreement.
      
          NOW, THEREFORE, in consideration of the mutual covenants
      and agreements contained herein, the parties hereto agree as
      follows:
               1. Employment.  The Company hereby employs Employee and
      Employee hereby accepts employment with the Company on the
      terms hereof.
      
          2.   Position and Duties.  Employee hereby accepts
      employment, and shall serve the Company as President and Chief
      Executive Officer, and shall perform, faithfully and dili-
      gently, the services and functions relating to the office or
      otherwise reasonably incident to the office as may be desig-
      nated in the bylaws of the Company and from time to time by
      the Board of Directors of the Company.  Employee shall report
      to the Chairman of the Board of Directors of the Company. 
      Employee shall devote such time, attention, energies and
      business efforts as an executive of the Company as are
      reasonably necessary to perform his duties as specified above.
      
          3.   Compensation and Benefits.  The compensation and
      other benefits payable to Employee under this Agreement shall
      constitute the full consideration to be paid to Employee for
      all services to be rendered by Employee for the Company.
      
               3.1  The Company will pay to Employee an initial
      base annual salary of $152,900.00, payable bi-weekly, subject
      to payroll and withholding deductions as may be required by
      law and other deductions applied generally to employees of the
      Company for insurance or other employee benefit plans. 
      Employee's base salary for the future years shall be
      determined by the Compensation Committee of the Board in its
      sole discretion.
      
               3.2     During the term of Employee's employment,
      Employee shall be entitled to participate, on the same terms
      and conditions as other executive employees of the Company, in
      such major medical, dental, life insurance, 401(k), and other
      employee benefits which the Company now provides or in the
      future may provide to its executive employees generally,
      subject to the availability of such benefits at a reasonable
      cost.

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               3.3       The Company shall grant to Employee
      options in its Incentive Stock Option Plan in such amount as
      determined by the Board.  Such amount shall be commensurate
      with the duties and responsibilities of Employee.
      
               3.4     During the term of Employee's employment,
      Employee shall be entitled (a) to reimbursement for any and
      all reasonable expenses incurred by Employee in performance of
      his duties under this Agreement, in accordance with the
      Company's standard policy; and (b) to receive twenty (20) days
      of fully paid vacation time and ten (10) days of sick leave
      during each year of his employment.  In addition, and as part
      of Employee's compensation package, Employee shall receive a
      car allowance in the amount of $300 per month.
               
               3.5     Bonus compensation:  The budget for each fiscal
      year, as approved by the Board of Directors of the Company,
      shall contain annual gross revenue goals and annual net income
      goals for such fiscal year.  The difference between the
      projected budget revenue and net income numbers and the
      revenue and net income numbers from the preceding fiscal year
      will form the Target Revenue and Target Income Goals. 
      Employee shall be eligible to earn an annual bonus, in
      accordance with such targets, and/or by action of the Board at
      the recommendation of the Compensation Committee.
      
               3.6  Provided Employee remains employed by the
      Company at the end of the relevant fiscal year, (i) if the
      Company fully achieves the Target Revenue Goals for the
      relevant fiscal year, Employee shall be entitled to receive,
      as additional cash compensation, an amount equal to thirty-
      three percent (33%) of Employee's base annual salary for such
      fiscal year; and (ii) if the Company fully achieves the Target
      Income Goals for the relevant fiscal year, Employee shall be
      entitled to receive, as additional cash compensation, an
      amount equal to thirty-three percent (33%) of Employee's base
      annual salary for such fiscal year; and (iii) if the Company
      achieves only a percentage of either the Target Revenue Goals
      or Target Income Goals for the relevant fiscal year, Employee
      shall be entitled to receive, as additional cash compensation,
      an amount equal to the same percentage of thirty-three percent
      (33%) of Employee's base annual salary for such fiscal year. 
      Should Employee exceed both Target Goals, Employee is eligible
      to earn additional bonus compensation.  To the extent that
      both the Actual Total Revenue and the Actual Total Net Income
      for the relevant fiscal year maintain the Projected annual
      Margin for that fiscal year (defined as FY Net Income divided
      by FY Revenue), Employee can earn additional bonus
      compensation.  This additional bonus compensation will be
      twenty percent (20%) of the overage of the incremental growth
      in net income above the original Target Net Income Increase
      Goal for such fiscal year.
      
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               3.7  To the extent payable, this additional
      compensation shall be calculated quarterly (based on one-
      fourth of the Target Revenue Goals and one-fourth of the
      Target Income Goals) and paid quarterly following the filing
      of the Company's quarterly reports on Form 10-Q; provided,
      however, that twenty percent (20%) of each quarterly amount
      due shall be withheld by the Company pending final calculation
      at the end of the fiscal year and, if payable, shall be paid
      along with the final quarterly payment to Employee following
      the filing of the Company's annual report on Form 10-K with an
      unqualified opinion from the Company's independent auditors.
      
          4.   Conflicts of Interests; Covenant Not to Compete.
      
               4.1  During the term of his employment with the
      Company, Employee shall not engage in any other business
      activity (whether or not such business activity is pursued for
      gain, profit or other pecuniary advantage) if such business
      activity would conflict with the interests of the Company or
      impair Employee's ability to carry out his duties hereunder or
      any of its Subsidiaries.  For the purposes of this Agreement,
      the term "Subsidiary" shall mean any subsidiary, affiliate,
      associate, or successor corporation of the Company.  The terms
      and provisions of this Agreement that relate to any of the
      Subsidiaries of the Company shall inure to the benefit thereof
      and shall be enforceable against Employee by such Subsidiary
      or Subsidiaries.
      
               4.2  To induce the Company to enter into this
      Agreement, Employee 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, em-
      ployee, 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 or any of its
      Subsidiaries during the period of Employee's employment with
      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").  Employee acknowledges that
      the provisions of this Section 4.2 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, Employee 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.

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          5.   Confidential Information.
      
               5.1     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 a confidential, trade
      secret and/or proprietary character and which is either
      developed by Employee (alone or with others) or to which
      Employee 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 secrets, know-how, manufactur-
      ing 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, con-
      fidential 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.
      
               5.2  Employee shall, both during and after his
      employment with the Company, protect and maintain the con-
      fidential, trade secret and/or proprietary character of all
      Confidential Information.  Employee shall not, during or after
      termination of his employment, directly or indirectly, use
      (for himself or another) or disclose any Confidential Informa-      
      tion, for so long as it shall remain proprietary or pro-      
      tectible as confidential or trade secret information, except
      as may be necessary for the performance of his duties under
      this Agreement.
      
               5.3     Employee 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.
      
               5.4     Each of Employee's obligations in this Article
      5 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.
      
               5.5     The provisions of this Article 5 shall survive
      the expiration or earlier termination of this Agreement.

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          6.   Term.  Subject to earlier termination as provided in
      Article 7, the initial term of this Agreement shall commence
      on the 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 anniversary of the expiration of the
      original term and each renewal term upon mutual agreement by
      the parties.  Either party shall notify the other 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.  In the event this Agreement is renewed by mutual
      agreement of the parties as aforesaid, Employee shall be
      entitled to an increase in Employee's base annual 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.
      
          7.   Termination.  
      
          7.1  The Company may terminate Employee's employment any
      time during the employment period for "cause" (as hereinafter
      defined) by action of the Board of Directors of the Company
      upon giving Employee notice of such termination, which
      termination shall take effect immediately.  As used herein,
      the term "cause" shall mean any of the following events: 
      (i) Employee's conviction of a felony or a conviction or plea
      of guilty to a crime involving moral turpitude;
      (ii) Employee's willful gross misconduct or willful gross
      neglect of duties; or (iii) dishonesty by Employee in the
      performance of his duties or misappropriation of funds or
      property of the Company by Employee.  If the Company
      terminates Employee's employment in accordance with the
      provisions of this Section 7.1, all compensation pursuant to
      this Agreement shall cease as of the effective date of such
      termination.
      
          7.2  If Employee dies during the term of his employment,
      this Agreement shall automatically terminate as of the date of
      death and compensation due Employee hereunder shall be paid to
      Employee's estate or legal representatives through the date of
      death.
      
          7.3  The Company may terminate Employee's employment any
      time during the employment period other than for "cause" upon
      giving Employee notice of such termination, which termination
      shall be effective thirty (30) days after such notice.  If the
      Company shall terminate Employee's employment any time during
      the employment period other than for "cause", or if a new
      Agreement is not negotiated by the Company prior to the end of
      the second renewal term (September 30, 2001), (a) all
      compensation pursuant to this Agreement shall cease as of the
      effective date of such termination or expiration, and (b)
      Employee shall be entitled to receive, in full and complete
      satisfaction of any claim Employee may have or make by virtue
      of such termination of or failure to renew this Agreement, and
      as Employee's exclusive consideration for the waiver of any
      such claim, severance pay equal to six months of his base
      salary payable monthly in six equal monthly installments, plus
      any accrued additional compensation pursuant to Section 3.5
      hereof.

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          8.   Notices.  Any notice under this Agreement must be in
      writing and may be given by certified or registered mail,
      postage prepaid, addressed to the party or parties to be
      notified with return receipt requested, or by delivering the
      notice in person.  For purposes of notice, the address of
      Employee or any administrator, executor or legal representa-
      tive of Employee or his estate, as the case may be, shall be
      the last address of the Employee on the records of the
      Company.  The address of the Company shall be its principal
      business address.  The Company and Employee shall have the
      right from time to time and at any time to change their
      respective addresses by giving at least ten days' written
      notice to the other party.
      
          9.   Entire Agreement/Assignment/Governing Law.  This
      Agreement shall be binding upon and inure to the benefit of
      the Company and its successors and assigns.  This Agreement
      shall not be assignable by either party hereto without the
      written consent of the other party.  This Agreement
      constitutes the entire Agreement between the parties and shall
      supersede all previous communications, representations,
      understandings, and Agreements, either oral or written,
      between the parties or any officials or representatives
      thereof.  This Agreement shall be governed by and interpreted
      in accordance with the laws of the Commonwealth of Virginia. 
      The parties agree that any dispute arising under this
      Agreement shall be resolved by arbitration under the rules of
      the American Arbitration Association.
      
          10.  Remedies, Modification and Separability.  Employee
      and the Company agree that Employee's breach of Articles 4 or
      5 of this Agreement will result in irreparable harm to the
      Company, that no adequate remedy at law is available, and that
      the Company shall be entitled to injunctive relief; however,
      nothing herein shall prevent the Company from pursuing any
      other remedies at law or at equity available to the Company. 
      Should a court of competent jurisdiction declare any of the
      covenants set forth in Articles 4 or 5 unenforceable, the
      court shall be empowered to modify or reform such covenants so
      as to provide relief reasonably necessary to protect the
      interests of the Company and Employee and to award injunctive
      relief, or damages, or both, to which the Company may be
      entitled.  If any provision of this Agreement is declared by
      a court of last resort to be invalid, the Company and Employee
      agree that such declaration shall not affect the validity of
      the other provisions of this Agreement.  If any provision of
      this Agreement is capable to two constructions, one of which
      would render the provision void and the other of which would
      render the provision valid, then the provision shall have the
      construction which renders it valid.
      
          11.  Preservation of Business; Fiduciary Responsibility. 
      Employee shall use his best efforts to preserve the business
      and organization of the Company, to keep available to the
      Company the services of its present employees and to preserve
      the business relations of the Company with customers and
      others.  Employee shall not commit any act which would injure
      the Company.  Employee shall observe and fulfill proper
      standards of fiduciary responsibility attendant upon his
      service and office.

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          12.  Effect of Agreement.  Subject to the provisions of
      Article 9 with respect to assignment, this Agreement shall be
      binding upon Employee and his heirs, executors, adminis-
      trators, legal representatives, successors and assigns and
      upon the Company and its successors and assigns.
      
          13.  Waiver of Breach.  The waiver by the Company of a
      breach of any provision of this Agreement by Employee shall
      not operate or be construed as a waiver by the Company of any
      subsequent breach of Employee.
      
          14.  Headings.  The section headings in this Agreement
      are for convenience of reference and shall not be used in the
      interpretation or construction of this Agreement.
      
          15.  Execution.  This Agreement may be executed in
      multiple counterparts each of which shall be deemed an
      original and all of which shall constitute one instrument.
      
          Employee acknowledges that he has read this Agreement and
      understands that signing this Agreement is a condition of
      employment.
      
          IN WITNESS WHEREOF, this Agreement is executed and
      effective as of the day first above written.
      
      
      COMTEX SCIENTIFIC CORPORATION        ACCEPTED & AGREED TO:
      
      
          /S/ C.W. GILLULY                 /S/ CHARLES W. TERRY
      By: __________________________       ____________________
          C.W. Gilluly, Ed.D.                   Charles W. Terry
          Chairman
          Board of Directors
      
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