Piranha Receives Formal Invitation to Compete in China's Broadband Streaming Project.

Business/Technology Editors

DALLAS--(BUSINESS WIRE)--October 18, 2000

Dr. Xiaolin Wu, Piranha's Director of Research and Development, Leads

Delegation To Beijing On Friday, October 20th

Piranha, Inc. (OTC Bulletin Board:BYTE), an innovator in global digital compression management solutions, and its wholly-owned subsidiary, Zideo, today announced a major international initiative whereby Piranha's streaming video technology will vie for the opportunity to provide broadband applications to apartment buildings in China.

"Major Chinese metropolitan cities have begun rapid deployment of broadband networks. All new apartment buildings are now offering 100Mb Ethernet connections to all units. Our Chinese consortium has identified two main applications across this broadband network: video streaming and telemedicine," said Mr. Hui Tang, chief engineer of the Chinese Metropolitan Broadband Networks.

The Chinese consortium consists of the Chinese Academy of Science, Beijing Cable TV Network, China Net, Chongking Infoport and the Ningbo Infoport. The consortium's pilot project and field trial test is scheduled to be completed by December 1st.

"I feel that Piranha's enhanced H263+ and MPEG2+ streaming technologies are extremely competitive and ideally suited for this market," stated Dr. Xiaolin Wu, director of research and development at Piranha. "Our streaming media solutions offer significant improvements over existing standards."

Dr. Wu was recently appointed as Piranha's Director of Research and Development. Previously Dr. Wu served as Visiting Scientist for Microsoft Research in Redmond, Wash. and has served as a committee member of the IEEE Data Compression Conference as well as technical expert of the Working Capital Group on "Coding Of Audio, Picture, Multi-Media and Hyper-Media Information" of the International Standard Organization (ISO).

Piranha's CEO, Edward W. Sample, confirmed that this project is one of many that conforms to the Company's aggressive entry into the streaming media industry. "Receiving an invitation to compete for a significant market share of the most populous country in the world is quite an opportunity," said Sample. "We are tremendously excited about the future and remain committed to focusing our efforts towards significant sales opportunities such as this," stated Sample.

China and the Internet--A Growing Need for Infrastructure

The number of Internet users in China climbed from 2.1 million to more than 6.7 million during 1999, according to a report published jointly by BDA (China) Limited and The Strategis Group. According to the report, those ISPs with access to the fattest pipes have emerged on top. Nevertheless, the report notes that opportunities are growing for new players, including cable TV operators, to tap revenues in the ISP market, which are expected to exceed $4 billion by 2003. China also presents a burgeoning market opportunity for Internet equipment, software, and service, the report found. This sector exceeded $160 million in 1999. Piranha's digital compression technology diminishes the bandwidth requirements for graphical, video and text file transmission to make Web pages load more quickly.

About Piranha, Inc.

Piranha, Inc., based in Dallas, Texas, provides digital data compression technology through its three commercially available products: Piranha Byte(TM) a publishing and printing product focusing on digital media workflow, Piranha Net(TM) an image-based Web page product and Piranha Stream(TM) a real-time, streaming video product. Piranha products are available on Linux, Windows and Macintosh systems. Zideo, Inc. is located in Richardson, TX. More information is available at www.piranha.com and www.zideo.com or by calling Zideo.com, Inc. at [phone].

Piranha Stream and Piranha Byte are trademarks of Piranha, Inc. Other companies' names and products are trademarks or registered trademarks of their respective companies.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. Included in this company profile are certain "forward looking" statements within the meaning of the Securities Act of 1933, as amended. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, actual results may differ materially from those anticipated in the forward looking statements as a result of certain factors including sales levels, retention, competition trends and other market factors.