MERLIN Software Signs Agreement With Koch For Distribution of Linux BackUP Software.

Koch Distribution will sell MERLIN's PerfectBackUP+ (TM) Linux backup and crash recovery software to its retail channel, including Dixons Stores Group, which possess a dominant market share in the U.K. Koch Distribution also has agreements with SuSE, Caldera and Macmillan Software.

PerfectBackUP+ (TM) for Linux is an extremely easy to use, fully automated, backup software application for backing up Linux, UNIX, Windows and Macintosh computers for as low as $69. It is the most economical, powerful, network backup and crash recovery tool available. It provides backup scheduling and remote backup, recovery, encryption, robotics module, enhanced security and many other features with both a graphical and character user interface. PerfectBackUP+ is available for all major versions of Linux.

"We are very pleased to have completed this agreement with Koch," said Robert Heller, President, MERLIN Software Technologies. "We are confIDEnt this is the beginning of a long, profitable relationship for both companies.

"Adding MERLIN's PerfectBackUP+ for Linux to our growing portfolio of Linux packages allows us to continue on our quest of providing alternative products to the market. We are delighted to have secured this agreement. Our signing with MERLIN Software Technologies Inc. highlights our strong position in the industry," said Craig McNichols, Koch Distribution.

PerfectBackUP+ is in use at more than 230,000 locations world wide and continues to lead the way with innovation, performance and reliability. Its users include small as well as Fortune 500 companies. MERLIN Software Technologies Inc. (MERLIN Softech), is a software publishing company that provides Linux, UNIX, Windows and Mac users with unique Linux and UNIX based software that dramatically improves a system's reliability and speed. MERLIN Softech has offices in Altamonte Springs, Florida and Burnaby, British Columbia.

For more information, contact:

MERLIN Software Technologies International, Inc.
405 Douglas Avenue, Suite 1305
Altamonte Springs, Florida 32714

Toll Free: (888) 414-3311
Phone: (407) 774-2914, Fax: (604) 320-7277
Web site: www.merlinsoftech.com

Statements in this news release which are not purely historical are forward-looking statements, including any statements regarding belief, plans, expectations or intentions regarding the future. Forward looking statements in this news release include the expectation that Koch will distribute PerfectBackUP to its retail channel pursuant to the terms of the announced agreement. Unforeseen factors could cause results to differ materially from expectations, and include risks that Koch's marketing efforts may not result in sales, that a competitor's product may prove superior to PerfectBACKUP, or that the agreement with Koch is not consummated, among other potential risks.

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