Merlin Completes Successful Phase 1 Rollout of EssentialServer^TM

Burnaby, BC - December 5, 2001 - Merlin Software Technologies International, Inc. (OTCBB: MLSW) a leading developer of Network Attached Storage appliances and developer of the Merlin SecureDVR today announced the successful completion of the initial rollout of the EssentialServer in Western Canada and the signing of 35 authorized resellers for Merlin's line of fully integrated network attached storage, backup and recovery servers.

Merlin's Chief Marketing Officer, Robert Murray said, "The resellers rapid acceptance of the EssentialServer into their mix of products and the initial sales of EssentialServer to their clients is strong testimony of the need for this type of product in today's network environment. Through the resellers we have signed to date, we have better than 100 sales people pushing EssentialServer. We have already sold a number of units to various companies and institutions including the University of British Columbia and Simon Fraser University. Several of the resellers are quoting on multi-unit deals and in fact, since taking on the product 6 weeks ago, one reseller has advised us that they have 150 deals which they expect to close."**

Merlin's EssentialServer 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®.

According to IDC forecasts, overall networked storage market revenues will grow from $7.5 billion in 2000 to $8.1 billion in 2001 with NAS accounting for $1.84 billion. IDC believes more than half of all disk storage systems will be purchased in either SAN or NAS configurations by 2003, and two-thirds of the market will be SAN or NAS by 2005.

A listing of Merlin's partners and resellers can be obtained by visiting Merlin's website at http://www.merlintechnologies.com/partnership/partners.html

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 those 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 SecureDVR^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:

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

Robert Murray Chief Marketing Officer MERLIN Software Technologies International, Inc. Tel: (604) 320-7227 Toll Free: (877) 988-7227 Email: sales@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 indicated by "**" and include the statement that one reseller has 150 deals which they expect to close.

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 and other network appliances, the inability of Merlin's resellers to sell Merlin's network attached storage and other network appliances, 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.

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