Merlin signs TLD Computers Inc. to resell EssentialServer^TM and SecurDVR^TM product lines

Burnaby, BC - January 17, 2002 - Merlin Software Technologies International, Inc. (OTCBB: MLSW) a leading developer of network attached storage appliances and security/loss prevention solutions, today announced that it has signed TLD Computers Inc. as a Value-Added Reseller (VAR) for its EssentialServer^TM and SecurDVR^TM products lines.

TLD is one of western Canada's premier VARs and is a wholly owned subsidiary of London Drugs Limited.

"TLD has an excellent reputation and an extensive customer base in many of our target markets," says Robert Murray, Chief Marketing Officer for Merlin. "They have a clear focus on customer service which is one reason they are so successful in markets such as government, education, the public sector, Crown corporations and small to mid-size businesses. We are extremely excited to have TLD representing our products to their customers."

"TLD is pleased to partner with Merlin in helping bring the EssentialServer and SecurDVR product to market," says John Matyus, TLD Branch Manager. "Both product lines are innovative, timely, and excel in the 'ease of use' and features category."

"Merlin's product lines are very easy and fast to setup, troubleshoot and administer," says Fabain D'Souza, TLD's System Engineer. "The line is perfectly suited for organizations with little or no in-house IT support. I look forward to working with our customers and Merlin in this new and dynamic relationship."

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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