CDNet To Launch Cash Dispensing Network For E-Commerce Business.

Business Editors

TORONTO--(BUSINESS WIRE)--Jan. 24, 2000

CDNet To Launch Cash dispensing Network For E-Commerce Business

CDNet Canada Inc. (CDN:CDNT.), Toronto, Ontario, Canada (&uot;CDNet&uot;) has agreed with the developer of a software application from Hamilton, Ontario to complete the commercial exploitation of this software program and system designed to facilitate the world wide purchase and sale of goods and services over the Internet without the use of credit cards. The market for the service and system are those vendors and purchasers who are unwilling or unable to use credit cards for e-commerce business but are desirous of concluding point of sale transactions without the delay in delivering cash or money orders to vendors before goods are shipped.

The Agreement provides for the formation of a corporation to be known as CDNet Cash Plus Inc. (&uot;Net Cash Plus&uot;) or such similar name. The parties will have equal ownership and equal representation on the Board of Directors of NetCash Plus. No treasury shares are being issued by CDNet as part of the agreement. Pursuant to the Agreement, CDNet will provide initial working capital up to $125,000.00 in the form of a loan, as needed, to test the system with a select group of vendors and purchasers. CDNet will make these funds available from cash flow derived from its ATM business and from private placements of its equity shares. The software developer will contribute the software and system to NetCash Plus and receive $25,000.00 as nominal consideration and will be entitled to purchase 166,666 treasury shares of CDNet at the exercise price of $.15 per share pursuant to its existing stock option plan should the developer become a director of CDNet. CDNet has 5,014,764 restricted voting shares issued and outstanding which trade publicly and 25,000 common shares which do not trade publicly. The Board of Directors of NetCash Plus will determine commercial exploitation of the service after the test. The test service is expected to be launched by February 15, 2000.

The software package was developed over a two year period to fill the need of those parties who were desirous of buying and selling goods and services over the Internet without using credit cards and without the shipping delay caused by the need for delivery of money orders or cash by purchasers. The software application uses the Linux operating system. Separate proprietary programs are downloaded to registered vendors and purchasers. The vendor's program will allow a linkage to be made between NetCash Plus and the vendor's web site or e-mail to conclude payment for point of sale transactions; NetCash Plus is offered as an alternate method of payment, confirmation that funds are available from NetCash Plus are given to vendors to facilitate sales and shipping quickly, and transfers of money are made from NetCash plus directly to vendors. The software allows a purchaser to place an order with any registered NetCash Plus vendor and quickly pay for the goods and services through NetCash Plus.

The service will work as follows, Vendors will agree to accept payments for their goods or services from NetCash Plus. Vendor subscribers will pay a fee to receive a software package that will integrate with their web site or attach to their e-mail. On conclusion of a purchase, NetCash Plus will be offered as an additional payment choice. To pay by NetCash Plus, purchasers must have a NetCash Plus Internet Card that can be acquired in various ways in denominations of their choice. Purchasers provide an e-mail address and receive a card registration and pin number. Thereafter all transactions between vendors and purchasers can be concluded quickly and goods can be shipped immediately. NetCash Plus has no knowledge or involvement in any transaction but merely acts as a cash facilitator for vendors and purchasers.

Vendors have no risk as NetCash Plus will provide the necessary immediate financial confirmation to the vendor to confirm the sale or to ship goods or provide services unless the purchaser has sufficient funds available on his NetCash Plus Internet Card. For purchasers of goods and services, NetCash Plus offers the convenience of completing a cash purchase without using a credit card over the Internet or leaving the computer site. For vendors, a reliable, inexpensive, secure and expeditious method of taking money over the Internet is made available without credit card charge-backs or the fraudulent use of credit cards.

ATM Machines 

To update the public with respect to the activities of CDNet in the ATM business, the Company wishes to advise as follows.

CDNet became an IBM Business Partner in September, 1999. The Company is actively selling and placing ATM's in Ontario and is promoting the corporate sale of the Siemens Nixdorf ProCash Compact ATM.

CDNet terminated all negotiations with ATM North Inc. with respect to the forming of a partnership to carry on any business related to automatic banking machines. CDNet did not conclude any partnership arrangement with this company which had wrongly represented itself to CDNet as an affiliated IBM Business Partner at the time negotiations between the companies were commenced in the spring of 1999.

This news release has neither been approved nor disapproved by the Canadian Dealing Network or any other regulatory authority.