AJA Merchant Banking Change of Operations.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 13, 1998--AJA Merchant Banking (OTCBB:AJBC) The Board of Directors announces that due to weak and softening market conditions in the technology sector AJBC will be unable to complete its financing as required by terms and conditions contained in its acquisition agreements signed on July 24,1998 with Advanced Flex, Inc. ("AFI") of Minnesota.

In addition, AJBC will no longer be pursuing its interest with respect to the purchase of the P3 Technology due to these circumstances. AJBC and AFI have mutually agreed that it would not be in the best interest of either companies to continue to pursue any subsequent financing during these weak market conditions.

During several meetings with the Board of AJBC and certain major shareholders it was determined that it would be in the best interest of the company and its shareholders if AJBC pursued alternative business projects other than merchant banking and technology related acquisitions. As a result of this change in operations the company announces the resignation of Anthony J. Alda as President and CEO and the Board has appointed William Scott Marshall as Director and President effective as of October 8, 1998. The company also announces the resignations of Mr. Les Ames as Director and VP of Legal Affairs and Mr. Larry Bergman as Director effective as of October 9, 1998.

AJBC will focus its operations on single project management and the Board shall change the company's name accordingly in order to reflect this new focus of business. The company is currently in negotiations to acquire all of the assets of a company in the business of manufacturing and distributing products utilizing 3D technology. Target markets include both sports and tourism and production facilities are already in place. Initial distribution and licensing agreements are expected to be announced before year end with product introduction and sales revenue expected shortly thereafter. This proposed acquisition if successful, is expected to be completed within 30 days and will result in a further change in the management and Board of Directors of the company.

William Scott Marshall, President and Director

This press release may contain forward looking statements that involve risks and uncertainties which could cause the actual results to differ materially from those intended or anticipated by the company.

Note to Editors: No Stock Exchange has approved or disapproved the information contained herein.