CDI Solutions For Electronic Commerce

ON-LINE UPGRADE SERVICE DEBUTS ON ANTI-VIRUS SOFTWARE

ISSAQUAH, WA (February, 1996)--An innovative new service that makes it
possible for end-users to order, pay for and receive software upgrades
on-line is making its maiden run on anti-virus software from McAfee
Associates, Inc.

Each copy of McAfee's new Scan95 anti-virus software, an OEM product
bundled on thousands of computers and peripherals, comes loaded with an
on-line upgrade program from CDI, called Self Serve Software. Users access
the program through a menu option labeled "Update Scan95" where they can
select either a one-time $10 upgrade or a one or two-year upgrade
subscriptions for $40 and $60, respectively.

The 32-bit service then intuitively senses the most direct route to Self
Serve Software's client server, either via modem, Internet or the user's
network's connectivity path, and then sends the order and encrypted credit
card information to the server for processing and approval. The server
fulfills the order electronically, transmitting the upgrade with a
registration key that is valid only on the customer's PC. Security is
ensured through a proprietary "secret key" locking and unlocking system,
the use of a private T1 phone line for credit card authorization and a
variety of other mechanisms.

MORE SALES AT A LOWER COST

"Traditionally, users who wanted to upgrade our software had to call our
800 number to do it, and only about 10% went to the trouble of
registering", said Alex Sill, McAfee's director of OEM sales. "With this
service we expect that percentage to rise significantly, simply because
customers will be able to upgrade without even taking their eyes off their
computer screens. And it will cut our costs because we'll have fewer calls
to handle and virtually no packaging or delivery expenses." CDI directly
links the customer into the world of on-line ordering!

The system even cuts costs for customers with no connectivity capabilities
who order by conventional methods because the order goes to a fulfillment
house instead of to McAfee's order takers. In addition, McAfee views the
service as an opportunity to increase sales of other company products.
Other items from McAfee's product line will be added to the Scan95 on-line
upgrade catalog this spring, as well as the option of ordering manuals and
upgrade diskettes.

PAY AS YOU GO

For software vendors, another advantage of CDI's service is a pay-as-you-go
feature that requires the software company to pay a service charge only at
the time of purchase by the end user. The charge varies with each customer
but averages 10% of the gross transaction. CDI keeps a separate bank
account for each vendor, deposits customer payments into each account
minus the service charge and then provides the vendor with all
registration data and consumer information for customer support needs.

"We don't have to pay unless we're making money, and this is money we
probably wouldn't be collecting otherwise," Sill noted. "The secret is to
make it easy for the user to buy, and this is a cutting-edge method of
simplifying the process that we believe will spread to the whole
industry".

BEYOND UPGRADES

In addition to the upgrade services being used by McAfee, CDI's Self Serve
Software service can be used for a wide variety of other applications. The
program offers the first practical system for software rental, for
example, permitting users either to test software packages or to use them
for short-term projects without making large capital investments.

CDI's service can also eliminate piracy and turn potential pirates into
customers. Both these benefits are possible because the service locks the
paid software to a specific computer as identified by the unique GUID
electronic serial number embedded in every 32-bit operating system. If the
software is copied to an unauthorized computer, the Self Serve Software
Server will foil the interloper by time-bombing the program or releasing
it in a crippled mode predefined by the software vendor. Industry
estimates suggest that this kind of distribution model will provide
registration revenues four to seven times higher than traditional
shareware registration rates.

ON THE CUTTING EDGE

"What we are offering is value-added electronic commerce that can do
everything from registering, renting and selling software to downloading a
demo from the World Wide Web", said CDI President Gerry Bakker. "It's a
service that doesn't disrupt the present channels of delivery; it
dramatically lowers cost of sales by eliminating expenses such as
warehousing, packaging, shipping and distributing; and it ensures revenue
collection and copyright enforcement. McAfee jumped on the bandwagon
early, but eventually, everyone in the software industry will want to do
business this way.

For Further Information:

CDI Commerce Direct International, Inc.
205-591 Bernard Ave.,
Kelowna, B.C., Canada V1Y 6N9

Phone:  (604) 861-3217
Fax:    (604) 861-3266
Email:  gbakker@icsnetwork.com

PRESS CONTACT:
S & S Public Relations, Northbrook, IL
(800) 287-2279
Email:  ARClark@aol.com
Allison Clark, Christy Gerhart, Laura Greenberg
 
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