Paradigm Announces Exclusive Distribution Contract With Distrel Spa. of Italy.

Business Editors

MILAN, Italy--(BUSINESS WIRE)--Oct. 4, 2001

PowerLOC Technologies Inc., a subsidiary of Paradigm Advanced Technologies, Inc. (OTCBB:PRAV), (www.powerloc.com) announced today that it has signed an agreement with Distrel Spa. for the distribution of its Destinator(TM) navigation system product throughout Europe. Distrel Spa. is one of the largest distributors of consumer electronics products in Italy.

Since its inception 15 years ago, Distrel Spa. (www.distrel.it) has become the preeminent independent distributor of consumer electronics in the Italian market and currently supplies over 5,000 outlets throughout Italy with consumer products, mobile phones, customized electronic, in-vehicle navigation systems and technology solutions. Distrel's sales revenues in 2000 were 142 Billion lira (USD$66.7 million), which represents a growth of 117% compared to sales revenues in the previous year. The company projects sales revenues of 170 Billion lira (USD$80 Million) for 2001 and is well on track to meeting its projections. Distrel's success results from highly effective and imaginative sales strategies combined with efficient managerial and operating procedures. Distrel's business model is based upon acting as more than "a national distributor"; they act more as a business partner for their clients and suppliers, providing an increasing range of value-added services.

According to the signed agreement, Distrel will be PowerLOC's exclusive distributor of Destinator(TM) navigation systems in Italy. Distrel will also have the right to distribute Destinator(TM) navigation systems in other European countries on a non-exclusive basis. Under the terms of the agreement, Distrel will be responsible for final assembly of Destinator(TM) navigation systems customized for various European markets and for marketing and distribution activities, as well as for providing customer support services in Italy. As a part of the agreement, Distrel commits to purchasing a significant quantity of Destinator(TM) Navigation systems next year with an initial purchase order for 1000 units for immediate delivery. The initial purchase order has been received by PowerLOC and is currently being processed.

"We are very pleased with the agreement. The Destinator(TM) Navigation system is the killer application for PocketPC handheld devices that we have been looking for. Our distribution partners have expressed great interest in the product. We considered a number of other in-vehicle navigation systems but quickly realized that because of its price, functionality and quality, Destinator(TM) is well positioned to gain wide market acceptance in a short period of time," said Giorgio Guana, Chairman and CEO of Distrel Spa.

"Distrel is an ideal distribution partner for the Destinator(TM) product," stated Ron Yekutiel, General Manager of the Destinator(TM) division. "Distrel's vast experience with the distribution of mobile phones and in-vehicle navigation systems is the ideal combination for our hand-held, mass-market oriented navigation solution."

"Although the European Destinator(TM) product has only been available in Europe for a short time, it is enjoying tremendous popularity and is quickly reaching "must-have" status. We chose Distrel based upon their long-standing reputation for providing quality products in innovative ways. They have both the channels and resources to make a significant impact with our products in Italy as well as the rest of Europe. This relationship further enhances our distribution of Destinator(TM) and will help to drive further sales and revenues," said Paradigm's President and CEO, Eduardo Guendelman.

ABOUT PARADIGM ADVANCED TECHNOLOGIES, INC.

Paradigm Advanced Technologies, Inc. (NASDAQ OTCBB: PRAV) provides a full range of wireless location tracking technology solutions to service providers in the telematics, GPS, M-business, L-solutions and CRM/ERP markets. Paradigm's servers, software and devices locate, track, communicate with and manage vehicles and other assets. Paradigm owns the exclusive licensing rights to a broad based wireless location patent (U.S. Patent #B1 5,043,736) covering the apparatus and method of transmitting position information from satellite navigational signals (such as GPS) over cellular systems to a base unit and displaying the location of that equipped object. Paradigm's rights cover all fields of use for the patented system (except for certain criminal justice applications). For further information on Paradigm and PowerLOC, visit www.powerloc.com or www.destinator1.com or call [phone] X249.

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

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.

NOTE: Conversion rate used was 1 US$ to 2128 Italian Lira