Merilus Launches Incentive Program for Firewall, VPN and Network Security Products Resellers

VANCOUVER, British Columbia–(BUSINESS WIRE)–Nov. 15, 2001– Merilus, Inc. (OTCBB: MERH) announced today that it has now launched its Preferred Reseller Program, wherein value added resellers (VARs) and system integrating resellers of Merilus’ suite of computer security products may be eligible to receive a variety of valuable benefits for reaching sales targets. The success of the program should be helped through Merilus’ strong distributorship network that included companies such as Ingram Micro, USA (NYSE: IM), Tech Data, (Canada) (NASDAQ: TECD) and EMJ Data Systems LTD (TSE: EMJ).

The company’s incentive program aids VARs and system integrating resellers through the provision of highly experienced internal marketing and technical support. It also rewards these partnering companies with substantial rebates, sales lead referrals, marketing materials, trade show and seminar support as well as the opportunity to participate with new product pre-release rollouts

“This will create profitable relationships with leading firewall and VPN (Virtual Private Network) resellers and VARs throughout the United States and abroad,” says Ross Mrazek, Merilus Vice President of Sales. “This new program will help all new and current Merilus resellers increase their margins and expand their markets with Merilus products and will be especially helpful for resellers entering the growing VPN market which is expected to reach over $7.5 billion in 2005. The sales targets are set to very achievable levels so everyone can profit from this program.”

Merilus believes that its Preferred Reseller Program with be especially helpful for resellers entering the growing VPN market, which is expected to reach over $7.5 billion in 2005. The sales targets for this program have been purposely set at very achievable levels so as to enable a large number of companies to profit from its incentives.

The rebate program will be applied to quarterly purchase totals of all Merilus products including the Gateway Guardian and FireCard product lines and their respective maintenance agreements.

The entire FireCard series of hardware network security and VPN appliances and the Gateway Guardian line of software products are currently distributed by some of the world’s leading technology distributors: Ingram Micro, Tech Data, (Canada) and EMJ Data Systems and available through better VARs and system integrating resellers around the world. For more information on how to become a Merilus Preferred Reseller, please contact the Merilus Sales Department at (604) 792-0100 or e-mail an agent at sales@merilus.com. Information can also be obtained through the company’s website at: http://www.merilus.com/.

About Merilus, Inc.

For the past 4 years, Merilus, Inc has been delivering intelligent digital products that make networking safer and more efficient for organizations connected to the Internet. Merilus produces both the FireCard line and Gateway Guardian lines of network security products. Both offer sophisticated security solutions that are powerful yet easy to use. Merilus products answer a growing demand from the small to medium enterprise (SME) market that has been underserved by many of the major digital security appliance and software manufactures. The International Data Corporation (IDC) predicts the SME market that is served by Merilus’ products will grow to $2.5 billion by 2003. IDC also estimates that spending on security software and appliances is estimated to reach over $1.5 BILLION this year and grow at a rate of 88% for the next 5 years. FireCard and Gateway Guardian products are currently being integrated into a wide spectrum of industries including government, education, health services, manufacturing, financial services, professional services, research companies, accounting services, ISP’s, media and federal agencies. More information about Merilus security products can be found at www.merilus.com.

Forward-looking statements and comments in this press release are made pursuant to safe harbor provisions of the Securities Exchange Act of 1934. Certain statements, which describe the Company’s intentions, expectations or predictions, are forward-looking and are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of rapid technological and market change; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rates and currency exchange rate fluctuations; and the impact of consolidations in the technology industry. These risks may further be discussed in periodic reports and registration statements to be filed by the Company from time to time with the Securities and Exchange Commission in the future. The SEC and NASD have not reviewed and does not accept responsibility for the adequacy or accuracy of this release.




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