Caffe Diva Secures Public Financing Using DataMerge's Do-It-Yourself SCOR Kit: Drive-thru Coffee Shop Chain Raises $1 Million for National Expansion Through Direct Public Offering.

DENVER--(BUSINESS WIRE)--Aug. 12, 1998--DataMerge, Inc., a Denver-based developer of software and database information for companies seeking financing, today announced that one of its clients, Caffe Diva, raised $1 million in public financing using DataMerge's "Self-directed IPO, Raising Capital with SCOR," a do-it-yourself kit containing a two-volume manual and supporting software for entrepreneurs seeking to raise capital through a direct public offering (DPO).

Eugene, Ore.-based Caffe Diva is a chain of drive-through coffee cafes. In October 1997, the company filed a Small Corporate Offering Registration (SCOR) with the Securities & Exchange Commission (SEC) in an attempt to raise $1 million, the annual limit that companies can raise through a SCOR offering. According to Ron Davis, a principal of Caffe Diva, the money was needed to expand the company's concept from the Pacific Northwest into national markets.

"Two years ago, we opened our first kiosk, and by early 1997we had four in Lane County, Oregon," Davis said. "But growing into other geographic areas takes money -- lots of money. We considered many options. Banks were of little help. Angel investors wanted a substantial stake in the business, board membership, and veto power over expenditures and site selection. We didn't want to turn control over to outsiders. Finally, after investing two years and virtually all of our capital, a DPO (Direct Public Offering) through a SCOR seemed to be a better -- and perhaps our only -- option."

Davis and his partners first learned about the SCOR program by reading a DataMerge advertisement in the Wall Street Journal that read, "Do-It-Yourself DPO." "Most of us have attempted a home remodel or oil change. Why not a direct public offering," Davis said.

Davis purchased DataMerge's SCOR kit and used it as a "roadmap to success," he said. "DataMerge's SCOR manual is a thorough guide that, when followed carefully, will greatly increase the likelihood of success for any company trying to raise money through a SCOR offering. The manual's marketing guide is perhaps the most valuable component. It stressed the importance of the Internet as the key medium for marketing your stock. We also used a combination of traditional marketing techniques such as one-on-one selling, investor road shows, advertising, and public relations. We quickly discovered that stock is sold not bought."

SCOR was developed by the SEC in 1992 as a way to help small business gain easier access to equity capital, while still satisfying SEC requirements. The goal was to devise a filing process simple enough for an entrepreneur, his corporate attorney and his accountant to complete, yet thorough enough for full disclosure.

SCOR offers small businesses a low-cost, low-hassle alternative to filing a traditional Initial Public Offering (IPO). Using SCOR, companies can raise up to $1 million in equity capital annually by selling stock, options, warrants, rights, notes or other debt securities.

For companies seeking capital, filing a SCOR is far less expensive than filing a traditional IPO. In addition to management time, IPOs can cost up to $300,000 in registration, attorney and consultant fees. SCORs, on the other hand, simplify the process, saving hundreds of man-hours and eliminating the need for high-priced advisors. A SCOR can often be filed for under $10,000.

While the SCOR process is simple compared to other public offering options, there is relatively little instructional information available in the marketplace for companies wanting to complete a SCOR, according to DataMerge Chief Executive Officer Spencer Kluesner.

DataMerge's SCOR kit, "Self-directed IPO, Raising Capital with SCOR," is comprised of a two-volume manual and supporting software. The manual, which is divided into the SCOR Registration Guide and the SCOR Marketing Guide, encompasses 376 total pages and provides background on the SCOR filing process, step-by-step instructions for filling out all required forms, sales/marketing techniques, samples of successfully completed registrations, and timetables of events. The supporting software, which comes on a CD-ROM for Windows or Windows NT, provides samples of all required forms and automates the completion of them.

"The real value-added of our kit is the SCOR Marketing Guide," Kluesner said. "Anybody can provide a blueprint of how to file a SCOR registration, but the real question is 'will the filing be successful?' We developed our marketing guide based on our own experiences marketing a popular financial website (www.datamerge.com) and input from securities industry professionals and investors. Their insights and recommendations are included, making it much more likely that companies who use our SCOR kit will be successful in raising the capital they seek."

"Self-directed IPO, Raising Capital with SCOR" is targeted at small business owners, chief executive officers, chief financial officers, accountants, and anyone wishing to become a SCOR consultant. The cost of the SCOR kit is $249. It can be ordered directly from DataMerge by calling [phone]. Multiple-order discounts are available.

Privately-held DataMerge was founded in 1989 by Spencer Kluesner, a former securities advisor who today serves as chief executive officer of the 26-person company. DataMerge's products, which include "how to" manuals, electronic directories and financial software, are sold directly to customers in North America, Western Europe and Asia. Additional information can be obtained at DataMerge's website: www.datamerge.com.

Editor's Notes: All company, product and brand names are the property of their respective owner.

   CONTACT:  DataMerge, Inc., Denver
              Peter Masi, PR Counsel, 303/399-6031
              [e-mail]