Merlin Signs 25 Resellers in Eastern Canada in First Month

Burnaby, BC - December 19, 2001 - Merlin Software Technologies International, Inc. (OTCBB: MLSW) a leading developer of Network Attached Storage appliances and developer of the Merlin SecurDVR today announced the signing of 25 new authorized resellers for Merlin's line of products in Ontario and Quebec.

Merlin's Chief Marketing Officer, Robert Murray said, "Since officially opening our Toronto office 4 weeks ago, we have seen a tremendous amount of sales momentum building around both EssentialServer and SecurDVR. We expect to hire additional sales staff in Toronto and in the West in January to meet demand and to support several distributors we will be signing before year-end. So far this has been a very rewarding quarter for Merlin and I look forward to launching our products into the US market in 2002."

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 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.

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 SecurDVR 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, Toronto, Ontario 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

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