Varitek Industries Retains Merger Communications to Coordinate its Media and Investor Relations Programs.

Business Editors &Technology Writers

HOUSTON--(BUSINESS WIRE)--Jan. 20, 2000

Varitek Industries Inc. (OTCBB:VATK) announced today that it has retained Merger Communications Inc. of Houston to lead its media relations/investor relations operations. Merger Communications, one of the fastest growing financial media relations companies in the U.S., focuses on small and mid-cap publicly traded technology companies, coordinating nationwide programs that generate increased interest and awareness on and about its clients and their products and services with the media and the financial community.

&uot;We have spent the last couple of years developing our proprietary technology,&uot; says Randy Bayne, chairman and CEO of Varitek Industries. &uot;We have also been working to establish a lucrative niche market for ourselves, which is helping us to stay comfortably ahead of our competition. We've accomplished this by keeping a tight focus on the development of innovative new product and services lines. We feel confident in our ability to stay on the leading edge. We used this same philosophy when it came time to choose a public relations/investor relations partner. We brought Merger Communications on board because they have the same kind of focus we do and they have a proven track record of success. Their role will be to spread the word about Varitek Industries to the media and financial community, reaching our potential customers, partners and investors.&uot;

Varitek Industries Inc. and its wholly owned subsidiary, Varitek Technology Group, develop, acquire, market and distribute cutting-edge wireless data systems and technologies in response to identified consumer, commercial and/or institutional needs and demands. Market-driven products and solutions are derived from proprietary technologies developed in-house via the company's R& subsidiaries as well as through emerging strategic partnerships with third party manufacturing and development firms.

Merger Communications is a rapidly growing eight-year-old international media relations firm that specializes in helping small and mid-size companies establish their images and build awareness through the dissemination of information to the media and the investment community. Through its dynamic media relations and financial media relations services, the Houston-based firm has built a solid reputation as one of the premier agencies in the market today.

The statements made by Varitek Industries may be forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. This information is not a recommendation to buy or sell securities Varitek. The statements and opinions presented are the views of Varitek and are subject to change. Merger Communications (Merger) is a media relations firm employed by the Company. Merger and Varitek believe that all information in this release has been obtained from sources considered reliable, but cannot guarantee that the statements presented herein are accurate or complete. Varitek believes that its primary risk factors include, but are not limited to: the need for substantial financial requirements; the need to develop effective internal processes and systems; changes in the overall economy; changes in technology; the number and size of competitors in its markets; continued and future strategic alliances; changes in the law and regulatory policy; and the mix of product and services offered in Varitek's target markets. Merger Communications, its officers, directors and employees don't currently own any VATK shares. However, Merger's compensation for its services consists of cash and 63,333 shares of company stock over the course of the next six months. Merger typically has a long position in the securities of the companies in which it publishes information, and Merger may be buying or selling securities in the course of its regular business.