Merlin Announces New Orders and 1st Quarter 2002 Revenues

Burnaby, BC - May 6, 2002 - Merlin Technologies (OTCBB: MLSW) today announced that it has received purchase orders of approximately $500,000USD in the first four weeks of the 2nd quarter for the EssentialServer and SecurDVR products. Fulfillment of these orders is expected to extend through the 3rd quarter and revenue is expected to be recognized starting in the 2nd quarter. Merlin also announced its 1st quarter 2002 sales would be less than $100,000USD. In addition, the company has shipped products with an invoice value of approximately $55,000USD for which revenue recognition has been deferred in accordance with Merlin's revenue recognition policy.

"This first quarter was only our second revenue quarter with our new products and as such presented significant forecasting challenges," said Robert Murray, Chief Marketing Officer. "The opportunities we forecast to close in the 1st quarter still exist for us to win, as evidenced by the purchase orders received in the first weeks of the 2nd quarter. This coupled with a number of new marketing initiatives has begun to fuel growth and will enable us to increase revenues in the 2nd quarter."

Orders received during the first weeks of the 2nd quarter include Optima Networks for 100 EssentialServers to be installed at one of their national accounts with offices across Canada and an order from a major Canadian security integrator for 120 SecurDVRs.

"It is rewarding for all those that have worked so hard at Merlin to see our revenues growing," said Robert Heller, Merlin's President and CEO. "I am encouraged by the fact that the opportunities we saw in the 1st quarter are becoming 2nd quarter purchase orders. Our resellers, integrators and distributors have now established our products in their catalogues and have outstanding quotes representing substantial sales opportunities. We will work very closely with our partners in the coming weeks to help close this business."

Merlin completed a number of partnership and reseller agreements in the first quarter of 2002 that are expected to have a significant positive impact on revenues. Included are agreements with Chubb Lock & Safe (Canada), EMJ Data Systems and ICICI Infotech Services, a subsidiary of the ICICI Group, (NYSE: IC) of New York and Mumbai, India.

About Merlin Technologies

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 a fast and 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 financial institutions, retail chains, shopping centers, manufacturing facilities and commercial/residential buildings.

Merlin has offices in Burnaby, British Columbia and representation in Montreal, Quebec, 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 ability to significantly increase revenues in the 2nd quarter, our ability to work with our partners and close business for the outstanding quotes which represent substantial opportunities for sales and our ability to increase revenues through new partnership and reseller agreements.

While such forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, Merlin's actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions, or other future performance suggested in this press release. Our ability to increase revenues in the 2nd quarter, close substantial opportunities for sales and increase revenues through new partnership and reseller agreements involve certain risks and uncertainties, including the risk that we will not be able to manufacture and deliver the EssentialServer and SecurDVR products in a timely fashion to satisfy any outstanding purchase orders or proposed purchase orders. If we fail to deliver such products in a timely fashion then we will not be able to recognize any sales or revenue in the 2nd or future quarters and we will not increase our revenues. Our ability to increase sales 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 annual report on Form 10-KSB for the year ended December 31, 2001 and its other periodic reports filed with the Securities and Exchange Commission.

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