DTI Announces $3 Million Private Placement of Convertible Debentures.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Aug. 7, 2001

DTI Dental Technologies Inc. (CDNX:DTI.) ("DTI"), a leading provider of dental laboratory services, announced today a proposed private placement of $3,000,000 of convertible debentures (the "Debentures").

Mercantile Bancorp Limited (on behalf of BCMC Capital Limited Partnership and BCMC Capital II Limited Partnership) and Banyan Capital Partners Limited Partnership have committed in principle to acquire the $3,000,000 Debentures.

The principal amount of the Debentures will be convertible at any time, in whole or in part, into common shares of DTI at a conversion price of $1.00 per common share and will bear an interest rate of 11.0% per annum in the first two years and 10.0% for the balance of the four year term. Subject to certain trading volume requirements, during the first two years, interest will be paid in common shares of DTI. Any unconverted balance will mature and be repayable together with any accrued or unpaid interest four years from the closing date. After 30 months from closing, DTI will have the right to redeem the Debentures, subject to meeting certain share price criteria and satisfactory maintenance of certain covenants and financial ratios.

DTI plans to use proceeds of the financing to support its acquisition programs in Canada and the USA and for working capital purposes. Subject to the approval of the Canadian Venture Exchange, the private placement is expected to close in August, 2001.

Mercantile Bancorp Limited is a private merchant investment company that specializes in providing capital and advisory services to emerging and mid-sized businesses. Mercantile has been successfully investing in this sector since 1989, focusing its activities primarily in Western Canada and the Pacific North-Western United States.

Banyan Capital Partners (Banyan) is a later stage private equity/venture fund headquartered in Vancouver, British Columbia. Banyan is affiliated with Connor Clark & Lunn Investment Management, one of Canada's largest independently owned investment managers with approximately $20 billion under management.

DTI has been acquiring and operating dental prosthetic manufacturing laboratories with a history of sales and earnings since 1998. The company is well positioned to capitalize on favorable demographic factors and an increasing consumer demand for cosmetic and restorative dentistry. It is focused on expanding throughout Canada and the United States.

ON BEHALF OF THE BOARD DTI DENTAL TECHNOLOGIES INC.

Paolo Kalaw, Chief Executive Officer

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.