Merlin Expands Product Line with High Performance and Rack Mount Versions of EssentialServer^TM and Storage-only Appliances

Burnaby, BC - February 19, 2002 - Merlin Software Technologies International, Inc. (OTCBB: MLSW), a leading developer of network attached storage (NAS) appliances and the Merlin SecurDVR^TM, today announced that it has significantly expanded its storage product line. The new products include two high performance EssentialServer^TM models, a rack mount EssentialServer and a new line of network attached storage (NAS) only appliances. Merlin believes that these new products significantly expand Merlin's potential market and will enable the company to build market share in a competitive environment.

"This expanded product line shows Merlin's commitment to respond to what the market is demanding in their network storage and backup products," says Robert Heller, Merlin's President and CEO. "The EssentialServer platform is very robust and well engineered, allowing us to easily respond to changing market conditions. The network storage product sector is extremely competitive and we believe these new products will help position Merlin as a market leader in terms of technology, price/performance and features."

The new products include:

• A rack mount version of the current EssentialServer: This product is designed for companies that require a complete integrated data backup and storage solution and are large enough to have a dedicated computer room and/or an existing computer rack. The rack mount version also has the capability to offer larger hard disk sizes than the desktop design. Storage sizes range from 240GB to 900GB. Prices start at $3,899US for the 240GB model.
• Rack and desktop version of the EssentialServer with IDE hard drives: These products offer a substantial performance improvement to the standard EssentialServer with increased data protection offered by RAID level 0,1, 5. Storage sizes range from 640GB to 900GB. Prices start at $5,779US for the 360GB model.
• Rack and desktop versions of the EssentialServer with SCSI hard drives: These products provide technically sophisticated customers with a solution that provides maximum performance, reliability and scalability. They also offer data protection in the form of RAID level 0,1, 5. The SCSI products provide high performance disk drives and high data throughputs for critical data environments. Storage sizes range from 360GB to 900GB. Prices start at $12,199US for the 360GB model.
• Rack and desktop versions of a storage-only EssentialServer: These products address the increasing demand from our customers and resellers for a robust data storage-only solution. Both IDE and SCSI hard drive options are available to ensure reliability, scalability and high performance along with RAID level 0,1, 5 data protection. These storage products are extremely competitive in price/performance, utilizing the proven and robust technology and engineering of the EssentialServer. Storage sizes range from 80GB to 900GB. Prices start at $1,069US for the 80GB model.

The new products can be purchased through Merlin's network of Value-Added Resellers (VAR) across Canada. For information on finding a VAR near you, contact Merlin at 1-877-988-7227 or visit our website at www.merlinsoftech.com.

About Merlin Software Technologies International, Inc.

About Merlin Software Technologies International, Inc.

Merlin integrates leading-edge technologies into affordable, high-performance data storage/protection and security/loss prevention solutions. Designed to protect critical data, commercial assets and the people who use those assets, Merlin's products utilize state-of-the-art digital storage and backup and are easy to deploy and use.

Merlin's EssentialServer is the fastest, most economical way to add network attached storage (NAS) or integrated data backup, recovery and storage to a LAN. It is designed specifically for small to medium-sized business, corporate departments and regional offices to ensure that critical data is secure, protected and always available.

Merlin's SecurDVR is a network attached digital video recorder (DVR) designed and implemented specifically as a proactive security and loss prevention solution. Capable of managing up to 16 closed circuit television (CCTV) cameras and a host of alarm mechanisms, the SecurDVR is being deployed throughout Canada in banks, retail chains, shopping centers, manufacturing facilities and commercial/residential buildings.

Merlin has offices in Burnaby, British Columbia, Toronto, Ontario, Calgary, Alberta, Seattle, Washington and Tampa, Florida.

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

Statements in this press release which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this release include but are not limited to our belief that our new products will significantly expand our potential market and enable us to build market share, as well as our belief that the products will help position us as a market leader in terms of technology, price, performance and features.

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. Our beliefs and expectations with respect to the competitiveness of our products will depend on, among other things, continued market interest in and market acceptance of our products, establishment of a successful sales distribution program, continued development of our EssentialServer and SecurDVR products, and our ability to supply products that will meet with the expectations of our resellers and their customers. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties relating to such things as changes in technology, the introduction of competing products by our competitors, the ability of resellers and distributors to successfully market and sell our products, our ability to continue to raise funding to sustain our continuing operations, and the overall success of Merlin 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 beliefs, plans, expectations or intentions will prove to be accurate. Readers should refer to the risk disclosures outlined in the Company's quarterly report on Form 10-QSB for the quarter ended September 30, 2001 and its other periodic reports filed with the Securities and Exchange Commission.

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