DTI Announces Completion of a $1.5 Million Private Placement Financing With Mercantile Bancorp Limited.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--April 7, 2000

DTI Dental Technologies (CDNX:DTI.) ("DTI"), a leading provider of dental laboratory services, today announced the completion of a $1.5 million private placement financing with BCMC Capital Limited Partnership I and II (Mercantile Bancorp Limited).

The private placement of convertible debentures totaling $4,000,000 will be made available in three draws. The first draw, in the amount of $1,500,000, was made on closing. DTI can elect to receive the balance of $2,500,000 in two additional draws during the subsequent 18 month period, subject to approval of DTI's Board of Directors, Mercantile Bancorp's Investment Committee and the satisfaction of certain financial criteria.

The principal amount of the initial draw is convertible at any time in whole or in part for common shares of the Company at a conversion price of $0.80 per share and will bear an interest rate of 11% per annum. The principal amount of second and third draws will be convertible at any time in whole or in part for common shares of the Company at a conversion price equal to 110% and 105% (respectively) of the average 30 day trading price prior to each drawdown and will bear an interest rate equal to the greater of a rate determined with reference to prevailing Government of Canada rates at the time of drawdown or 10% per annum. Any unconverted balance will mature and be repayable five years from the initial closing. The Company will have specific redemption rights after December 31, 2001, subject to share value performance, satisfactory maintenance of certain key covenants and financial ratios.

DTI plans to use proceeds of the financing to support its regional acquisition programs in Canada and the USA. Donald Steele, President of Mercantile Bancorp, states, "We are pleased to become part of the DTI team. In our view, DTI's track record and the quality of its people and strategies put the Company in an excellent position to become a preeminent leader in the dental laboratory services industry in North America."

DTI acquires, consolidates and manages dental laboratories that design and fabricate custom dental prosthetics such as crowns, bridges, dentures, implants and orthodontic appliances. Demographic trends indicate that cosmetic and restorative dentistry to improve aging teeth will continue to grow rapidly in the years ahead. DTI is embarking on an extensive expansion program for fiscal 2000, concentrating on dental laboratories in Canada and various locations in the United States.

Mercantile 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.

ON BEHALF OF THE BOARD Paolo Kalaw, Chief Executive Officer

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