MERLIN Software Announces Arcana Linux Appliance for Small
Business Networking

NEW YORK - (BUSINESS WIRE) - January 31, 2001 - MERLIN Software Technologies International, Inc. (OTC:MLSW) announced today at LinuxWorld, Arcana, a family of Linux appliances for small business networking.

An easy-to-install networking solution, Arcana provides print, file, web, email and fax server software; a domain controller and backup software; as well as a 4 or 8 port hub and management software. To meet the needs of the marketplace, Arcana is priced starting at $1,000.

"The Arcana solution finally allows small businesses to take advantage of the Linux environment", commented Robert Heller, president of MERLIN Software. "Arcana allows MERLIN to bring a complete solution to the marketplace and to leverage our development in our award-winning backup and communication suites."

Arcana is fully compatible with Linux, Windows/NT, Macintosh, and UNIX clients.

About MERLIN Software Technologies International, Inc.

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

MERLIN is known for award winning software, such as PerfectBackUP+ 7.0, a fast, easy and powerful system backup application and CommunicadoFAX 4.0, a cross platform fax utility for Linux, UNIX and Microsoft Windows users. MERLIN's applications operate on all major Linux distributions including those from Turbolinux, RedHat (Nasdaq:RHAT), Caldera (Nasdaq:CALD), S.u.S.E, Debian, Mandrake and Corel (Nasdaq:CORL).

CONTACT:

MERLIN Software Technologies International, Inc.
Kevin O'Reilly, (877) 988-7227
pr@merlintechnologies.com
www.merlinsoftech.com

or

Thomas PR
Karen Thomas/Gina Prescia, (631) 549-7575
kthomas@thomas-pr.com

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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