MERLIN Signs OEM Agreement With Caldera Systems Inc.

BURNABY, British Columbia - (BUSINESS WIRE) - Oct. 11, 2000 - MERLIN Software Technologies, a leading provider of Linux and UNIX based software applications today announced the signing of an OEM Agreement with Caldera Systems Inc.

As part of the agreement, Caldera Systems and MERLIN are offering a special promotional bundle of Caldera eServer and Caldera eDesktop bundled with PerfectBackup+ providing substantial savings to the purchaser. Caldera and MERLIN began offering the promotional bundle at a number of recent Linux trade shows and subsequently decIDEd to formalize an agreement to extend the relationship. Both Caldera and MERLIN agree that many Linux users try various operating systems before making the final switch from Windows and that all Linux users require a dependable backup and restore solution. Both Caldera and MERLIN believe PerfectBackUP+ 6.2 is the product of choice. Both companies believe that the promotional bundle will add value to a customer's decision in purchasing PerfectBackUP+ 6.2.

The promotional bundle, $69 for eDesktop with PerfectBackUP+ 6.2, and $89 for eServer with PerfectBackUP+ 6.2 will be available for sale on MERLIN's web site this month!

About Caldera Systems Inc.

Caldera Systems Inc. is a "Linux for Business" technology leader in developing and marketing successful Linux-based business solutions, including its award-winning OpenLinux, NetWare for Linux, Linux technical training, certification and support - with free 30-day phone support and on-site consulting. Based in Orem, Utah, Caldera Systems has offices and 800+ resellers worldwide. For more information, see www.calderasystems.com or in the U.S. call (888)-GO-Linux (888-465-4689).

About MERLIN Software Technologies International, Inc.

MERLIN Software develops high quality applications software for the Linux operating system, including the award-winning PerfectBackUP+ , 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+ 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 focuses on integrating the Windows and Macintosh desktop systems with Linux servers and desktops and continues to lead the way with innovation, performance and reliability. Its users include small as well as Fortune 500 companies.

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: http://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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