ADVISORY/PC Pay Card-Swipe Device for ``Next Generation'' E-Commerce Security to be Demonstrated at Spring Internet World 2000.

Business Editors/Technology Writers

ADVISORY...for April 5-6 (Wednesday-Thursday)

Spring Internet World 2000

BOCA RATON, Fla.--(BUSINESS WIRE)--March 30, 2000

The doors to shopping online are expected to open wider--to more consumers, at far greater security for shoppers, merchants and banks--with a patented card-swipe device available by MerchantOnline.com(TM) (OTCBB:MRTO), (Frankfurt: WKZ928256), and (Berlin:WKZ928256). MerchantOnline.com, a leader in providing secure credit and debit card processing for Internet "e-tailers," will demonstrate the PC Pay(R) system at the Spring Internet World 2000 conference in Los Angeles April 5-6 (please visit booth No. 2467 Los Angeles Convention Center). Already used for many business-to-business applications, the PC Pay system offers far-reaching benefits as a secure solution to e-Commerce transactions.

PC Pay combines MerchantOnline's revolutionary software with an ATM/debit/credit card swipe device and smart card reader by Innovonics, Inc., which plugs into any home or office PC. It incorporates a patented "next generation" encryption technology offering the level of security consumers already accept when they use card-swipe devices in grocery and retail stores, gas stations and ATM machines. PC Pay has a numeric keypad for entry of personal identification numbers (PIN), which also are immediately encrypted using bank ATM network standards.

The patented technology used in the PC Pay device is unique in the world of e-Commerce, in that sensitive information is encrypted within the secure device, about the size of a PC mouse, before entering the potentially vulnerable PC. With typical eCommerce software-only encryption systems, data typed on a PC keyboard enters the user's personal computer NOT encrypted, and could be retrieved by an intelligent virus before being encrypted in software running in an infected PC.

"We believe PC Pay is the best offense against the growing number of sophisticated computer hackers, with an end-to-end e-Commerce solution that could become the standard in authenticating users with ultimate security, privacy, and simplicity," said Tarek Kirschen, MerchantOnline.com president and CEO. "This technology, with its far-reaching applications, can instantly encrypt all kinds of sensitive authentication information, such as credit card and driver's license numbers, voting ballots, and banking and medical files."

PC Pay offers online consumers the option of making online purchases using either their credit, ATM or debit cards. This opens Internet shopping to the millions of U.S. consumers who do not use credit cards--a vast, untapped market for e-Commerce. End-to-end secure transactions will also open up the business-to-business market segment by ensuring that transactions made over the Internet are performed by authorized personnel.

Another anticipated benefit to e-tailers is a potential reduction of transaction fees using the PC Pay System. The swipe device can allow for lower "card-present" credit card transaction fees of about 1.5%, since shoppers must physically use their cards to make transactions. This compares to the riskier "mail order/telephone order" fees of up to 5% that banks charge e-tailers whose customers must type in their credit card numbers on Internet order forms. Transaction fees could be even less for ATM and debit cards.

Kirschen said he foresees computer manufacturers such as Gateway (NYSE:GTW), Dell (Nasdaq:DELL) and Compaq (NYSE:CPQ) bundling the card-swiping device with their systems as added value, greatly reducing the price of the PC Pay device. Other distribution channels may include banks such as Bank of America (NYSE:BAC), First Union (NYSE:FTU), and Citibank (NYSE:C). Companies could choose to give away the device to customers in credit card programs, or sell PC Pay devices at a discount. Companies may see higher e-Commerce profits by providing PC Pay devices to consumers at discount prices due to lower transaction fees, reduced charge backs, and increased markets of customers who are waiting for a truly secure e-Commerce solution.

Distribution may include retailers who want to give their consumers incentive to go online, and e-tailers who want a competitive advantage. Some of the highest volume e-commerce retailers include Amazon.com (Nasdaq:AMZN), AOL (NYSE:AOL), Yahoo (Nasdaq:YHOO), Ebay (Nasdaq:EBAY), Buy.com (Nasdaq:BUYX) and PriceLine.com (Nasdaq:PCLN).

Founded in 1997, MerchantOnline.com offers one-stop solutions for merchants who want to set up and maintain a store on the Internet. It provides businesses with real-time secure encrypted credit and ATM/debit card processing, and shopping cart services.

Except for historical matters, the matters in this press release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The forward-looking statements reflect assumptions and involve risks and uncertainties, which might affect the company's business and prospects and cause actual results to differ materially from these forward-looking statements.

For more information, visit www.MerchantOnline.com and www.Innovonics.com.