COMPANY PIONEERS FIRST TURNKEY SOLUTION FOR ON-LINE SELLING

Major Computer Software Vendors Climb On Board

ISSAQUAH, WA (February, 1996)--CDi Commerce Direct International Inc. is
poised to become the first major success story in the biggest revolution
in retailing since the credit card. The Washington-based company has
developed a turnkey solution that makes it possible for businesses to sell
their products and services safely, securely and in a variety of different
ways via electronic commerce. The innovative service, called Self Serve
Software, is an ideal marketing and distribution tool for computer
software companies, which can use the service to sell and electronically
deliver new programs, upgrades or even rental titles. It eliminates the
need for packaging, the expenses of middlemen and the risk of piracy, and
it operates behind the scenes from within a computer program or over the
Internet. Businesses can also use the service to enable consumers to
purchase everything from books to airline tickets without leaving their
computer screens.

First Customers Signed

McAfee Associates, Inc., the world leader in anti-virus software, is
already using CDi's service to permit customers to order, pay for and
receive anti-virus upgrades on line from a transparent menu option on
their Scan95 anti-virus product. Several other clients, including a new
company that will sell art prints via computer, have made contractual
commitments.

And at the COMDEX computer trade show last November, attendees were so
enthusiastic about the service that CDi is now negotiating with many of
the more than 250 companies that made inquiries.

"If we booked every prospect we talked to at COMDEX, we would be talking
about gross revenues of more than $2.5 billion, of which we would keep
roughly 10% as our fee," says CDi President Gerry Bakker, a former
ComputerLand franchisee and founder of a 10-year-old point of-sale
software systems integration firm that has given him solid experience in
the arena of of retail transactions. "When you consider that it was our
first time out of the gate and that the software industry is only one part
of our market, you're talking about the potential to make a great deal of
money."

Eliminating Middlemen, Packaging, Piracy

For software vendors in particular, CDi's service offers significant
advantages because end-users can not only order and pay for software on
line but receive the products they order electronically. This eliminates
manufacturing, warehousing, packaging, shipping and middlemen-- expenses
that account for as much as 90% of the cost of software products. CDi's
electronic distribution methodology also serves as an effective solution
to software piracy because it locks the paid software to a specific
computer. If the software is copied to an unauthorized machine, the
system's server will release the program in a form that expires after a
short period or is otherwise not fully operational. These same safeguards,
coupled with on-line revenue collection capabilities, make CDi's service
the first practical system for software rental.

Increasing Customers' Revenues

"Industry estimates suggest that eliminating software piracy through an
electronic distribution model can increase revenues from 400 to 700%,"
Bakker notes. "Add the savings from eliminating steps like packaging and
the extra sales you can enjoy by offering related products on line, and
this can have a major impact on a software company's bottom line."

Other kinds of companies whose products do not lend themselves to
electronic distribution have a need for CDi's services as well. In the
case of a major charity that is selling calendars on the World Wide Web,
for example, CDi is handling the ordering and payment functions and using
a third-party fulfillment house to deliver product.

`Secret Keys' And Other Security Measures

CDi's system solves the security problems inherent in doing business over
the public information highway in a variety of innovative ways.

Instead of handling credit card authorization and merchant communications
over the Internet like Netscape, for example, CDi uses private T1 phone
lines that cannot be penetrated by computer hackers. This leaves only the
customer's vital statistics vulnerable to tampering, and CDi addresses
that problem with both a proprietary encryption method that has never been
cracked and a "secret key" technology that locks and unlocks each file.

In addition, the CDi system has built-in artificial intelligence programmed
to recognize unusual buying habits on a particular credit card.

"We believe we have the most secure methodology on the market, and we know
we offer the most complete service of its kind," Bakker says. "There are
other people that offer pieces of what we offer, but there is no one else
who has put them all together. And because we have, we have the largest
potential market of any company engaged in electronic commerce."
 
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