Merit Studios Inc. Announces Plan for Restructuring Company and Project for Internet Publishing House.

DALLAS--(BUSINESS WIRE)--March 22, 1999--Merit Studios (OTC BB:MRITP)announced a plan for restructuring the company following its initial failure in the Video Game production and sales business. A summary of the restructuring plan that will be presented to Merit's stockholders is set forth below: -0-

1.   A proposal that the following persons be elected to serve as the
     Board of Directors of the Company until the next annual meeting
     of stockholders.
                                    Michael John
                                    Jack E. Irons

2.   A proposal that all of the issued and outstanding Preferred Stock
     of the Company be converted into Common Stock on a 1 - for - 2
     basis (the Preferred Stockholder will receive two shares of
     Common Stock for each share of Preferred Stock that they own),
     ((that will put 2,220,000 Common Stock into the Float)), with all
     claims for payment of dividends or redemption being waived
     (66.66% approval is needed).

3.   Common Stock to the creditors of the Company, on the basis of 2
     shares of Common Stock for each dollar owed, in full and complete
     satisfaction of all of the company's outstanding debts, other
     than the debt owed to Michael John.

4.   A proposal that the Company issue Michael John 6,726,108 shares (
     51%) of the Common Stock of the Company in exchange for the
     cancellation of a debt in the amount of $ 300,000.

The company's new business venture will be the publishing of books from Authors all over the world in an electronic and CD format. There are many authors all over the world, which are having difficulties or not the means to publish their books. Merit will offer them to publish their work through the Internet. Merit will convert manuscripts into a proper format and offer buyers to order the book in CD format or to download it. Each publication will cost a flat fee of $14.75 plus $3.75 S&H (S&H charges vary for different countries). The publications are listed in categories and by clicking on the author's name a short history of the author and a summary of the contents of the book will be available. Merit will not publish any pornographic material.

The author of the book receives a 15% royalty of the sales. In each category there will be a top 5 list of the month with the numbers sold.

At a later state Merit will translate publications but in the beginning books will be published in the languages written. Further down the road books of the bestseller list will be available in audio form.

The sale of the books will be over the Internet by credit card processing.

The web site of Merit will be available shortly after the Stockholder meeting approves the Proposals.

The Company will operate under http://www.merit publications.com.

Mr. Michael John stated: "I am confident that the Stockholder will approve my Plan and I am positive that with the project to start an Internet Publishing House the investors will recover their losses. The Internet Publishing Project is very exciting with a tremendous potential."

This information should not be used to sell or buy Merit stock. This News Release gives Company future view which could change. Buying stock is a risk, which could result in losses. Everyone buying stock is doing this at his or her own risk.

For more information contact Merit at 214/939-8075, 1607 West Commerce Street, Dallas TX 75208 M. John.