Merlin introduces affordable security and loss prevention system at Canadian Security show

Burnaby, BC - October 16, 2001 - MERLIN Software Technologies International, Inc. (OTCBB: MLSW) today announced the launch of its new SecurDVR^TM, a security and loss prevention system that provides cost effective monitoring and surveillance for North American retailers, commercial/industrial property managers and hospitality operators. The product is being demonstrated at the Canadian Security show in Toronto, October 17-18.

Utilizing state-of-the-art digital recording and image capture, the SecurDVR^TM integrates up to 16 closed circuit television cameras for fast image retrieval and high-availability digital storage. The SecurDVR can be installed in minutes and presents an affordable alternative to traditional analog devices such as multiplexers and VHS recorders but with the greatly enhanced features and capabilities that only a digital video recorder offers.

"The protection of people, property and assets is critical to the success of any business, large or small," said Merlin's Senior Product Manager for the SecurDVR^TM, Jim Herringer. "Billions of dollars of shrinkage occur annually because of theft from both customers and employees. SecurDVR provides a cost effective, reliable and scaleable way to protect the financial health and viability of a business."

The SecurDVR^TM can monitor up to 16 separate cameras with extremely sensitive traffic areas redlined to identify, record and alarm any out-of-the ordinary activity. Frame rates can be programmed for specific cameras to ensure the digital images are acceptable for legal proceedings. Remote access over the Internet or Intranet allows security personnel to view, record, and "clip" images from virtually anywhere. For example, head office security staff can monitor activities from their desk to any number of remote store locations, "clip" a specific image and email that image to the remote location for action.

In a recent security report, the Retail Council of Canada found that Canadian retailers lost CDN$2.3B in 1999; $2.5M daily to shoplifting and $2.0M to employee theft. Canadian businesses spent more than $1.2B to prevent theft and vandalism in 2000, increasing at over 25% annually. According to a study by The Security Group, US businesses spent more than USD$2.5B on Close Circuit Television products in 2000.

About MERLIN Software Technologies International, Inc.

Merlin integrates leading-edge technologies into affordable, high-performance data storage and protection solutions for small to medium-sized business. Designed to protect critical data, commercial assets and the people who use these assets, Merlin's product lines utilize state-of-the-art digital storage and back-up capabilities. Merlin's EssentialServer^TM provides easy-to-use information protection and recovery solutions for data intensive operations. The company's SecurDVR^TM is a security and loss prevention system designed to monitor and protect the physical and human assets of any commercial enterprise.

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

Jim Herringer Senior Product Manager MERLIN Software Technologies International, Inc. Tel: (604) 320-7227 Toll Free: (877) 988-7227 Email: sales@merlintechnologies.com

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

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