DATAMERGE CREATES COMPETITIVE LENDING ENVIRONMENT.

DataMerge, Inc., a Denver-based developer of electronic commerce systems for companies or individuals seeking financing, has announced that borrowers or their brokers have submitted commercial real estate loan applications totaling more than $665 million through the company's CyberLoan 2000 system during its first six weeks of operation.

In related news, DataMerge reported that NationsBanc, Citibank, Banc One, and Wells Fargo have signed on as CyberLoan 2000 lenders, capable of receiving loan applications electronically through the system.

CyberLoan 2000, which went live on February 1, is an online pre-qualification and routing system for commercial real estate loan applications. It allows borrowers to electronically submit loan applications to the appropriate lenders. The system matches financial information found in the loan application with the individual lending criteria of more than 500 lending institutions. CyberLoan 2000 then automatically routes the application to the appropriate institution, branch and loan officer.

With CyberLoan 2000, the loan application process, which traditionally takes up to two weeks, now takes less than 30 minutes.

"CyberLoan 2000 will totally change the way this industry [commercial real estate lending] works -- the impressive dollar amount funneled through our system in the first six weeks bears that out," said Spencer Kluesner, chief executive officer of DataMerge.

Kluesner continued, "We project that the dollar amount of commercial real estate loan applications submitted online will surpass $760 billion by 2002. This assumption is based on the Federal Reserve's total annual lending estimate of $380 billion; our research into loan approvals versus rejections, which shows that only about 50 percent of applications are approved; and our belief that virtually all commercial real estate loan applications will be submitted electronically over the next three years. With CyberLoan 2000, DataMerge is first-to-market with a comprehensive system to support this burgeoning industry."

Developed with the assistance of executives at key lending institutions, the information and format of CyberLoan 2000's Loan Request Summary mirrors that used by loan review committees to approve loan originations. It provides enough information for a lender to make a preliminary commitment, followed by a firm commitment pending receipt of various due diligence materials.

CyberLoan 2000 also helps borrowers secure the best rates and terms by creating a more competitive lending environment. With the system, borrowers have access to far more financing institutions. They can look beyond their local bank for a loan, and can also source lenders for difficult or out-of-the-ordinary properties.

DataMerge charges borrowers and brokers for access to the CyberLoan 2000 system under two different subscription plans. The premium one-year subscription costs $650, plus $24.95 per month. It allows users to submit an unlimited number of loan requests and also allows unlimited searches on DataMerge's MortgageSource 2000 on-line database. An alternative "one-time" subscription costs $199 and allows users to submit one loan request to lenders on the system. Users can gain access to CyberLoan 2000 by calling DataMerge at [phone] or by visiting website www.financingsources.com.

During the initial test phase, DataMerge does not charge bona-fide lenders for access to the system. The company, however, anticipates charging fees to lenders in the future, which will likely include access fees and referral fees based on a small percentage of the loan amounts originated through the system. Optional marketing fees will be charged to lenders who wish to further promote their lending programs through CyberLoan 2000.

Formed in 1989, privately-held DataMerge is led by Spencer Kluesner, a former securities and mergers & acquisitions advisor who today serves as chief executive officer of the 26-person company. DataMerge is currently in negotiations for $10 million in second-round private financing and does not anticipate undertaking an initial public offering (IPO) until after the second quarter of 1999.

DataMerge's products, which include "how to" manuals, electronic directories and financial software, are used by more than 21,000 customers in North America, Western Europe and Asia. Additional information can be obtained at DataMerge's website: www.datamerge.com or www.financingsources.com or by calling 303-757-6298