MERLIN Ships First Fully Integrated Storage and Backup Solution for Data Protection with Maximum Data Availability and Recovery

Burnaby, BC - October 4, 2001 - MERLIN Software Technologies International, Inc. (OTCBB: MLSW) ) today started shipping the EssentialServer, a high-performance network server with fully integrated data backup and recovery. The EssentialServer is a cost effective, user installable system that does not require expensive IT technical support. It is designed to meet the data storage, backup and recovery needs of small to mid-size enterprises, regional offices and corporate departments.

Merlin's EssentialServer is the first, fully-integrated solution that combines hard disk storage, tape drive, and CD-RW along with proven backup, mirroring and recovery software. It's a cost-effective, easy to install and manage alternative to building a solution based on Microsoft® Windows NT.

"Reaching commercial release is an extremely important milestone for the company," said Robert Heller, President and CEO of Merlin. "Our beta-test program was an unqualified success, confirming the EssentialServer is a product that businesses need. I'm happy to report that all beta sites have endorsed the product. In addition to providing complete data protection, back-up and availability, the EssentialServer doesn't require IT technicians to install, operate or maintain it. EssentialServer takes care of itself while it takes care of your data."

"We are very excited to be able to offer the EssentialServer to our client base," said David Bull, owner and president of MicroAge Vancouver, a value-added reseller with 70 offices across Western Canada. "It fills a real need in the small and mid-size enterprise market for a cost effective and intelligent storage and backup appliance. EssentialServer is an innovative product and there's nothing like it in the market today."

"We installed the EssentialServer in minutes and it's performed perfectly," said Stacey Bodnaruk, owner of Reactive Design, a local graphic and website design company . "The product is eye-catching, very solidly built and really solves our problem for easy and reliable data storage and backup. We're keeping the beta unit."

"In our business, ensuring the security and availability of our client's data is critical," says Joyce Wishart, managing director of Need a Little Help Bookkeeping Services, one of the largest bookkeeping services in Vancouver. "We looked at implementing a Windows NT-based solution for file sharing and backups but were introduced to the EssentialServer through our computer reseller. The EssentialServer saved us over $3,000 compared to the NT solution, it's cost effective and the implementation hasn't disrupted our business."

The EssentialServer is available immediately through selected resellers. The complete solution, including tape backup, starts below $3,000USD and is a perfect fit for small to medium-sized businesses, regional offices, or corporate departments. Please contact Merlin for the name of a reseller near you.

About MERLIN Software Technologies International, Inc.

Merlin turns technology into solutions for small to mid-sized enterprises. Merlin's EssentialServer is a new line of high performance network servers that combine data storage with fully integrated data backup and recovery. EssentialServer addresses the two biggest challenges in managing a company's information: scaling data storage capacity as the number of digital files grow, and protecting a business from financial and legal disaster that arises from the loss of important data. Essential Server is a perfect fit for small to mid-size businesses, regional offices, or corporate departments

MERLIN recently announced EssentialServer, a new line of network attached storage appliances that meet the needs of small to medium-sized enterprises, with 1-100 employees. EssentialServer addresses the two biggest challenges in managing a company's information, scaling data storage capacity as digital files grow, and protecting a business from financial and legal disaster that arises from the loss of important information. EssentialServer is a perfect fit for a small business, regional office, or corporate department.

MERLIN has offices in Burnaby, British Columbia and Seattle, Washington. Website: http://www.merlintechnologies.com/

For more information, contact:

Randy Halischuk Director, Investor Relations MERLIN Software Technologies International, Inc. Tel: (604) 320-7227 Toll Free: (877) 988-7227 Email: ir@merlintechnologies.com

Cheryl McReynolds VP Sales MERLIN Software Technologies International, Inc. Tel: (604) 320-7227 Toll Free: (877) 988-7227 Email: sales@merlintechnologies.com

Merlin Software Technologies and EssentialServer are trademarks of Merlin Software Technologies International Inc.

Microsoft, Windows and Windows NT are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

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