Paradigm Advanced Technologies, Inc. Announces Agreement to Acquire NaftEL's Navigation Technology.

Business Editors/High Tech Writers

TORONTO, Ontario--(BUSINESS WIRE)--Jan. 16, 2001

Unique next generation map data compression and map

rendering technology will enable superior

navigation applications on PDA's and cellular phones

Paradigm Advanced Technologies, Inc. of Toronto (OTCBB:PRAV), (www.powerloc.com), announced today that it has executed a term sheet with NaftEL Technologies, Ltd. of Israel (www.nafteltech.com) to acquire all of NaftEL's navigation technology and intellectual property. NaftEL develops and markets navigation system software, enabling detailed street maps to be viewed on devices with limited on-board memory. This advanced technology also provides graphic or voice commands on portable computers, hand held devices and cellular phones to enable dynamic navigation for persons and vehicles.

NaftEL currently has five patents pending for software and hardware related to Geographic Information System (GIS) navigation and communications, and plans to apply for several more. NaftEL's core technology consists of proprietary rendering algorithms as well as a powerful map data compression which requires about 1/16th of the memory required by conventional map engines, making possible the use of flash memory instead of optical DVD or CD-ROM for map storage. Using NaftEL's breakthrough technology Paradigm plans to enhance its L-BIZ (TM) technology with additional navigational capabilities and offer map display, best route navigation, and optionally with voice navigation in hand held devices, cellular phones, personal digital assistants ("PDA"), pocket PCs and watches. NaftEL's other products are low-cost vehicle navigation systems that integrates navigation, communication and entertainment features for in-car applications.

"The acquisition of NaftEL's ground breaking portable navigation technology will enable us to provide a complete wireless portable location solution which will be particularly valuable for personal and asset tracking and navigation," said Paradigm's President/CEO Eduardo Guendelman. "The implications of NaftEL's technology are far reaching, making possible the loading of large databases to a new generation of cellular phones, Pocket PCs, watches and various PDAs. The market for this technology is huge and this will complement our intellectual property and L-Commerce wireless location solutions."

NaftEL was established in Israel by Mr. Elie Hantsis and Mr. Naftali Nissani, who combine a wealth of scientific, engineering and business experience. NaftEL currently employs a number of telecommunication and navigation experts including five scientists with PhD degrees.

NaftEL is the only company using the high quality navigation maps supplied by Navtech (Navigation Technologies Corporation) (www.navtech.com) of Rosemont, Illinois for the PDA market. Navtech makes the most complete, accurate and up-to-date navigable map databases for both Europe and North America. The Navtech database is a detailed, digital representation of the road network that provides the depth, accuracy and coverage needed to enable turn-by-turn, door-to-door route guidance. Every commercially available in-vehicle navigation product in North America and the majority of products in Europe that offer turn-by-turn route guidance use a Navtech database.

The acquisition of NaftEL's technology and intellectual property by Paradigm will be an all stock and stock warrant transaction and is subject to due diligence. The transaction is expected to close in February.

"We are delighted to be partnering with Paradigm," said NaftEL's CEO Elie Hantsis. "We will be able to use Paradigm's sales, marketing, technical and administrative resources to expedite the sale of our technologies, enter into strong strategic alliances and to provide integrated solutions for the portable wireless location market."

"We welcome the acquisition of NaftEL technology by Paradigm. NaftEL's mapping and navigation technologies combined with Paradigm's L-BIZ(TM) wireless-location technology will produce a most powerful hand-held wireless appliance," said one of NaftEL's Directors, Mr. Zeev Feldman, who is also the Chief Executive Officer of FIBI Investment House Ltd., an investor in NaftEL and a division of The First International Bank of Israel, which is a member of the international Safra banking group -- a multi-billion dollar organization.

About Paradigm Advanced Technologies, Inc.

Headquartered in Toronto, Paradigm Advanced Technologies, Inc. (www.powerloc.com) provides wireless location-based electronic commerce (L-Commerce) solutions. Paradigm owns the exclusive licensing rights to a broad-based wireless location patent (US Patent No. B1 5,043,736) covering the apparatus and method of transmitting position information from satellite navigational signals (like GPS) over cellular systems to a base unit, and displaying the location of a person or object so equipped. Paradigm's ownership covers all fields of use for the patented system, excluding criminal justice applications. Paradigm wholly owns PowerLOC Technologies Inc. and Power Point Micro Systems Corporation. PowerLOC anticipates providing a comprehensive range of L-Commerce and L-Business products and services including a family of proprietary wireless-location devices for this emerging industry and for location-based service providers (LSPs) in particular.

Paradigm is also listed on the Frankfurt Stock Exchange -- symbol:PG8.

For additional information, please call CFSG at 800/625-2236. Visit Paradigm's web site at www.powerloc.com that showcases some of its advanced new wireless location technologies and products.

This press release contains forward-looking statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Paradigm Advanced Technologies, Inc., and its business. The predictions embodied in these statements will involve risks and uncertainties and accordingly, Paradigm's actual results may differ significantly from the results discussed or implied in such forward-looking statements.