Outer Edge Announces License Agreements and Merger; Real Virtual Reality Takes Two Giant Steps Closer To Home PCs.

TORONTO--(BUSINESS WIRE)--Sept. 15, 1999--

Outer Edge Holdings Inc. (OEIL) is pleased to announce that it has curtailed its acquisition strategy (including the proposed SLADEKUTTER transaction as a result of our due diligence review) in favor of Licensing software and products for distribution through our International Sales & Marketing team.

Of significance, OEIL has signed an exclusive License Agreement with Acme Multimedia Inc. for its on-screen multi-channel messaging software, interactive push technology and their "Internet-Visual Communicator Suite" (INTERNET-VCS).

Outer Edge will use this advanced software as an integral component for its Global Entertainment (Virtual Reality) and Events scheduling business and aggressively market and sub-license the INTERNET-VCS as an ancillary business.

OEIL is also pleased to announce a merger agreement between Outer Edge and 1359511 Ontario Inc. 1359511 Ontario Inc. has advised OEIL that it has entered into an exclusive Licensing Agreement with Cadnetics Inc. of Montreal P.Q. to use, market, modify, distribute and sub-license Cadnetics Inc.'s advanced web-tooling products.

This arrangement also includes an exclusive sales & marketing agreement for its approximate 15-member development team. Cadnetics products include engine and universal portal (advancing Virtual Reality to the consumer) MP3 (entertainment, e-commerce, publishing, billing, tracking advertising and distribution) and numerous components, services, software, application and IT tools, as described in the Business Plan.

Furthermore, 1359511 Ontario Inc. intends, prior to the closing of the merger agreement, to purchase some remaining OEIL debt and to offer to qualified investors Units consisting of shares and warrants.

This merger agreement is subject to shareholder approval at OEIL's Annual General Special Meeting (AGSM), scheduled for late autumn, 1999.

Mr. Kenneth Johnson, President, CEO proudly proclaimed "The proposed merger with 1359511 Ontario Inc. coupled with the license agreements and a growing sales & marketing force should firmly establish our business as a leading web-tooling and entertainment company focused on rapid growth. Recent sales and confirmation of our chosen Executive Vice President, CTO will further drive expansion through our aggressive technology development efforts."

Post amalgamation, our investors and shareholders will enjoy the rights and attributes of both companies and be involved with a credible presence in the exploding Internet marketplace.

As of the date of this press release, OEIL has 5,569,000 issued and outstanding shares.

Canadian Dealing Network Symbol: OEIL NASD BB Symbol: OEIL

For more information contact Eric Gilboord, President of SOHO Marketing Inc. and advisor to the board on sales, marketing and shareholder relations at 416/223-5621, [e-mail] or [e-mail]