MERLIN Software Signs Distribution/Bundling
Agreement with LinuxLand.

ALTAMONTE SPRINGS, Fla. - (BUSINESS WIRE) - February 17, 2000 - MERLIN Software Technologies International Inc. (the "Company"), a leading provider of Linux based software applications and utilities including PerfectBackUP+ and HotWire Fax, today announced the signing of a distribution agreement with LinuxLand, a division of California based Circadian Software.

Under the agreement between Circadian and MERLIN, Circadian will begin selling MERLIN's PerfectBackUP+ 6.2 to its international customer base through its online retail outlet. Circadian will also begin bundling PerfectBackUP+ with their No. 1 selling Linux product, Linux Mandrake.

This agreement with Circadian Software, following so closely on the recently announced business partner agreement with Caldera Systems Inc., and the distribution agreement with UK based Koch Distribution, continues to move MERLIN's PerfectBackUP+ into the main distribution channels for the rapidly growing market for Linux products.

PerfectBackUP+ 6.2 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 interface for all major versions of Linux, including Caldera's OpenLinux 2.3, eServer 2.3, Turbolinux 4.0 and 6.0, versions 6.0 and 6.1 from RedHat, SuSE 6.0/1/2/3, Debian 2.0, Mandrake 6.1, and the latest Linux 1.0 release from Corel.

"We are excited about offering the new PerfectBackUP+ 6.2 to our customers," states Bryan Kennedy, President of Circadian Software and LinuxLand. Both Linux Mandrake, our oldest and best selling Linux product, and PerfectBackUP+ , the newest addition to our product line, have taken great strIDEs toward making Linux an operating system that's easy enough for the average computer user. With Mandrake version 7 and PerfectBackUP+ v6.2, I believe they have achieved that goal. That is why we're pleased to announce our Safe & Smart bundle, offering both the Linux Mandrake GoldPack 2000 and PerfectBackUP+ 6.2 with a 10'' Tux Penguin Mascot for $139.85."

"We are extremely pleased to be entering into this relationship with Circadian," states Robert Heller, President of MERLIN Software Technologies. "This agreement with Circadian Software, one of the top distributors of Linux Mandrake worldwide, and their subsidiary LinuxLand, provides MERLIN with yet another opportunity to supply PerfectBackUP+ to those individuals and corporations that are looking for an economical, robust and reliable backup solution."

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's recent signing of Koch Distribution, a leading UK retail distributor and supplier to the 347 store electronics retailer Dixons Group Plc (LSE:DXNS), and Caldera Systems Inc., the leader in providing Linux-based business solutions with over 750 resellers worldwide and now Circadian Software provides access to MERLIN's PerfectBACKUP software to the growing millions of Linux users worldwide.

MERLIN Software Technologies International, 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 Circadian/Linuxland 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 marketing efforts may not result in sales, or that the agreement with Circadian is not consummated as signed, among other potential risks.

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