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                                                                    EXHIBIT 99.1

[PNI TECHNOLOGIES, INC. LOGO]                                       NEWS RELEASE

FOR MORE INFORMATION CONTACT:
Mark B. Jones
770/582-3500

              PNI TECHNOLOGIES, INC. FILES FOR VOLUNTARY CHAPTER 11
             BANKRUPTCY PROTECTION AS PART OF BUSINESS RESTRUCTURING

         Atlanta, GEORGIA, JUNE 8, 2001 - PNI Technologies, Inc. (OTCBB: PNLG)
announced today that it and all of its subsidiaries have filed voluntary
petitions for reorganization under Chapter 11 of the federal bankruptcy laws in
the United States Bankruptcy Court for the Northern District of Georgia as part
of its efforts to restructure and reorganize its business.

         As previously disclosed, PNI has sought to restructure its indebtedness
either in connection with a strategic transaction or on a stand-alone basis. PNI
continues to discuss with a third party a potential merger transaction that, if
concluded, may enable PNI to retire its debt obligations and to access
additional working capital for growth. However, due to the expense associated
with a bankruptcy proceeding and the need to have some resources available to
fund the bankruptcy process at the time of filing, PNI has determined to proceed
with a Chapter 11 filing at this time. Because Chapter 11 provides an orderly,
court-supervised process for a restructuring, PNI believes this forum will
better enable PNI to continue to serve its customers and maintain its business
through the restructuring process.

         As part of the reorganization, PNI reduced its workforce by
approximately 50%. PNI has retained employees that it believes are necessary for
the continued operations of its networks and related customer support
activities. Mark B. Jones, who has been Vice President of Legal Affairs for PNI
since 1995, has assumed the role of President and Chief Executive Officer during
the reorganization period. As part of PNI's cost savings measures, Mark H.
Dunaway and Kathryn Loev Putnam have stepped down as Chief Executive Officer and
Chief Financial Officer, respectively. However, Mr. Dunaway will continue as
Chairman of PNI's Board of Directors and Ms. Putnam will continue as a member of
the Board of Directors; and in that capacity both will assist Mr. Jones with the
plan of reorganization.

         Mark B. Jones said, "While we are disappointed that the anticipated
merger has not yet occurred, we hope that this reorganization will enable us to
provide the best opportunities for PNI's stakeholders." Jones added, "We expect
to file a plan of reorganization shortly and are hopeful that PNI will emerge as
a stronger company."


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PNI Technologies, Inc. Files for Voluntary Chapter 11
Bankruptcy Protection as Part of Business Restructuring
June 8, 2001
Page 2

         Mark H. Dunaway said, "I have great confidence in Mark Jones and his
team. We are grateful to our employees, customers and vendors who have supported
us during a difficult time in the industry."

         PNI has not yet filed a plan of reorganization in its Chapter 11
proceeding. There can be no assurance that the funding necessary to satisfy
PNI's cash requirements through the bankruptcy process will become available or
that it will be available on a timely basis, that PNI will be able to
successfully reorganize in Chapter 11, or that PNI's existing common or
preferred stock will have any value following the Chapter 11 reorganization.

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Forward-Looking Statements

         The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in this
press release, the Company's Quarterly Report on Form 10-Q, its Annual Report on
Form 10-K, and other materials filed or to be filed by PNI with the Securities
and Exchange Commission (as well as information included in oral statements or
other written statements made or to be made by PNI) contains statements that are
or will be forward-looking, such as statements relating to future sales activity
or financial performance, marketing efforts and their possible results,
financing and restructuring alternatives and their possible results, the
possibility of any reorganization, acquisition or other strategic transaction,
future capital expenditures, financing sources and availability and the effects
of laws and regulations (including FCC regulations) and competition. Such
forward-looking information involves important risks and uncertainties that
could significantly affect anticipated results in the future and, accordingly,
such results may differ from those expressed in any forward-looking statements
made by or on behalf of PNI. These risks and uncertainties include, but are not
limited to, uncertainties affecting the wireless industries generally; risks
relating to PNI's expansion and other business development activities; risks
related to the deployment and feasibility of PNI's new networking technologies
and products; risks relating to technological change in the wireless industries;
risks associated with PNI's efforts to commercialize and market successfully its
networking products, such as the Platform1(R) and iTerminal(TM) products; the
relatively unproven nature of PNI's networking products, which represent a new
product line for PNI; challenges to PNI's technologies (such as challenges to
the validity of patents on PNI's switching technology); risks relating to the
ability of PNI to obtain additional funds in the form of debt or equity
(including availability of financing terms acceptable to PNI); fluctuations in
interest rates; and the existence of and changes to federal and state laws and
regulations. In particular, statements relating to the competitive position and
performance of PNI's current and future networking products and their expected
performance in the marketplace are forward-looking statements that are subject
to risks and uncertainties. PNI operates in a highly competitive marketplace and
new product developments by competitors can occur at any time, thereby
diminishing the attractiveness of PNI's products.


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