MERLIN Announces Agreement With Major Mexican UNIX Services Group

BURNABY, British Columbia - (BUSINESS WIRE) - Sept. 1 2000 - MERLIN Software Technologies International Inc. , a leading developer of Linux based software applications and utilities, today announced an agreement with Servicios Humanos Especializados en Computo, S.A. under which S.H.E.C will distribute PerfectBackUP+ throughout Mexico.

S.H.E.C., one of the biggest providers of UNIX based products and services in Mexico for the past five years, is now focusing on being the premier Linux applications provider. Cuauhtemoc Trejo, the company's Special Products Manager, said "our orientation is reseller channel development, working with resellers and distributors throughout the country. Our strategy is to begin seminars on Backup & Crash Recovery for Linux resellers and end-users."

"We are very pleased to be able to call S.H.E.C. one of our distributors. They are a very professional group and will represent us well in Mexico." said Shelley Montgomery, Vice President of Sales at MERLIN Software Technologies. "Mr. Trejo has indicated that they are currently negotiating with representatives from major high technology companies in Mexico including IBM Mexico, Conectiva and others, to promote PerfectBackUP+^TM through their channels."

"This agreement, coupled with our recent announcement to support Sun's Solaris operating system and other proprietary UNIX variants with the release of version 7.0 of PerfectBackUP+^TM , is indicative of the kind of synergistic relationship between Linux and UNIX. By porting PerfectBackUP+ to other UNIX variants and continuing to provide full Linux support, MERLIN Software is becoming a one stop shop for distributors looking for quality applications to add to their product line." said Robert Heller, President of MERLIN Software Technologies.

MERLIN develops high quality applications software for the Linux operating system, such as the award-winning PerfectBackUP+ 6.2, the most economical and powerful network backup 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. PerfectBackUP+^TM is available for all major Linux distributions including Caldera 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 Linux 1.0 release from Corel.

MERLIN's software products are in use at more than 230,000 locations worldwide and continue to lead the way with innovation, performance and reliability. Its users include small as well as Fortune 500 companies.

IDC, the premier Linux market research firm, recently reported that Linux has now overtaken Novell's NetWare as the network operating system of choice. IDC also expects Linux shipment growth to outpace all other server operating systems with an annual compounded growth rate of 28%. Total new license shipments are expected to rise to 4.7 million per year by 2004. Linux revenues are projected to grow at an annual compounded rate of 23%.

About MERLIN Software Technologies International, Inc.

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 productivity and reliability. MERLIN Softech has offices in Burnaby, British Columbia and Seattle, Washington.

For more information, contact:

Terry Jeffrey
MERLIN Software Technologies International, Inc.
Suite 200 & 201 - 4199 Lougheed Hwy.
Burnaby, B.C. V5G 3Y6.

Toll Free: (877) 988-7227
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. Unforeseen factors could cause results to differ materially from expectations, and include risks that marketing efforts may not result in sales, among other potential risks.

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