MERLIN Fuels Growth; Opens Toronto Office to Launch Eastern Canada Rollout for EssentialServer^TM and SecurDVR^TM

Burnaby, BC - November 20, 2001 - MERLIN Software Technologies International, Inc. (OTCBB: MLSW) a leading developer of Network Attached Storage appliances and developer of the SecurDVR^TM today announced the official opening of the Eastern Canada sales office in Toronto and the appointment of Mark Lynas as Eastern Canada Sales Manager. Mr. Lynas will be responsible for sales and the development of the VAR channel for Eastern Canada and will report directly to Chief Marketing Officer, Robert Murray.

MERLIN's EssentialServer^TM is the first, fully integrated solution that combines storage, backup, mirroring and recovery in one complete package. It is a cost-effective, easy to install and manage alternative to building a solution based on Microsoft® Windows® NT

SecurDVR^TM is a networked digital video recorder (DVR) designed and implemented specifically as a Security and Loss Prevention solution for businesses. Capable of managing up to 16 CCTV (closed circuit television) cameras and a host of alarm mechanisms, the SecurDVR^TM is a proactive Security and Loss Prevention solution. The system can be installed in minutes and presents an affordable alternative to traditional analog devices, and with greatly enhanced features and capabilities that only a networked digital video recorder can offer

"We are very pleased that Mark has decided to join MERLIN", said Murray. "Following on the heels of a very successful launch of EssentialServer^TM and SecurDVR^TM in Western Canada, the timing is right to begin the rollout of these two products to Canada's larger market in the East. This will help us prepare for our push into the US market in the New Year. Mark's successful background demonstrates his clear understanding of channel market opportunities, technology requirements and sales development strategies."

"This is a very exciting time for MERLIN with the recent launch of both EssentialServer^TM and SecurDVR^TM," said Murray. "The quality of these products is driving a great deal of interest and now with EssentialServer^TM shipping, today we are seeing more orders for the product than we had originally anticipated. I have spoken with our funding partners and they are committed to provide the financial resources to complete Phase 1 Western Canada rollout by early December and I expect we'll be announcing additional market expansion beginning this month."

Mark brings a tremendous amount of experience and ability to MERLIN having spent 10 of the past 13 years in Ontario at Ingram Micro in positions from Regional Account Manager to Senior Sales Manager in Business Development, Enterprise Solutions and Major Accounts. Prior to Ingram Micro, Mark held similar positions with Future Electronics in Ontario.

"I am very excited to be joining the Merlin team and establishing our presence in Ontario, Quebec and the Maritimes." said Mark Lynas. "The primary objective in this position is to establish a strong VAR channel to help support and expand our product offering into Eastern Canada. The EssentialServer line is a robust, easy to install, solution that provides integrated hardware and software in one complete package. Combine this with a browser interface and a sleek stainless steel design and this is one product that will certainly catch everyone's attention. EssentialServer is the perfect integrated storage, back- up and recovery solution for the fast growing SME segment and, based on the current responses, I am confident that the targeted VAR's will eagerly drive sales into Canada's largest IT market.

Coupled with our SecureDVR products we are poised to have tremendous impact nationally in both the IT and Security marketplaces. I am proud to be part of the evolution of MERLIN and the solid solutions we provide to our reseller partners."

About MERLIN Software Technologies International, Inc.

MERLIN turns big business technology into small business solutions. MERLIN's EssentialServer^TM is a new line of high performance network servers that combine data storage with fully integrated data backup and recovery. EssentialServer^TM addresses the two biggest challenges in managing a company's information: scaling data storage capacity as the number of digital files grows, and protecting a business from financial and legal disaster that arises from the loss of important data. EssentialServer^TM is a perfect fit for small to mid-size businesses, regional offices, or corporate departments MERLIN recently announced EssentialServer^TM, a new line of network attached storage appliances that meet the needs of small to medium-sized enterprises, with 1-100 employees. EssentialServer^TM 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^TM 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:

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

Legal Notice Regarding Forward-Looking Statements

This press release contains "forward-looking statements," including forward-looking statements as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.

It is important to note that MERLIN's actual results and outcomes may differ materially from those contained in the forward-looking statements contained in this press release. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties such as the emergence of companies with competing or superior network attached storage appliances, continued demand for network appliances, insufficient demand and market acceptance of MERLIN's EssentialServer network appliance, unforeseen changes in the software and hardware technology used in connection with computer networks, unforeseen claims in connection with MERLIN's intellectual property rights in connection with its EssentialServer continued development of computers and computer networks as tools to manage data and information for small and medium sized companies and businesses and the overall success of MERLIN and its subsidiaries in general.

Although MERLIN believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such belief, plans, expectations or intentions will prove to be accurate. Readers should refer to the risk disclosures outlined in MERLIN's annual report of Form 10-KSB for the fiscal year ended December 31, 2000 and MERLIN's other periodic reports filed from time-to-time with the Securities and Exchange Commission.

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

Back to index page