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MerchandiZer Finalizes Purchase of Online Development Associates

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Purchase Enhances MerchandiZer's Ability to Increase Website Exposure for MerchandiZer's Clients Under Previously Announced Revenue Sharing Contracts

MerchandiZer Software Inc. announced today the acquisition of Online Development Associates, a Texas-based provider of Internet ecommerce development services. MerchandiZer will use Online Development Associates' proprietary online development and Internet marketing capabilities to increase the effectiveness, organic traffic and conversion ratios for its customer websites (cumulatively enhancing the online sales of each participating MerchandiZer client in which MerchandiZer will receive a percentage of gross revenues under the previously announced revenue sharing contracts that it is signing with its clients).

MerchandiZer Software Inc. (www.MerchandiZer.com), producer of MerchandiZer eCommerce Shopping Cart Software Solution, is recognized as one of the most dependable ecommerce website options on the market, but the Company's recent acquisition of Online Development Associates (www.webpage-development.com) has resulted in vastly more sophisticated products and services being offered to current MerchandiZer ecommerce clients, as well as new clients with which it is presently negotiating contracts..

Most notably and most exciting of these products and services is the newly available "Merchant RS Program" that uses a revenue-sharing model which has more than half of its 24 positions booked for new Online Merchant Development services in 2006.

The Company's new revenue sharing model utilizes the combined technologies of MerchandiZer and Online Development Associates, and is projected to generate increased revenues of approximately 20% for merchants that are currently selling via traditional channels. MerchandiZer Software will share an average of 10% from its clients' ecommerce sales who use the MerchandiZer complete suite of products and services, and projects to recognize $2,769,579.60 in 2006 through this new model, with margins of over 50%. This increased revenue stream is in addition to the sale of its normal ecommerce software product under its standard licensing agreements.

When asked why she decided to join the MerchandiZer family, M'Lissa Dearing (founder of Online Development Associates) stated: "The MerchandiZer team represents a huge opportunity for Online Development Associates to bring exciting and more profitable ecommerce websites to many more online merchants than we are currently able to service as a small company; the infrastructure and support that MerchandiZer brings is the precise partner we've been waiting for. But overall, we joined forces with MerchandiZer in the effort to make a significant impact on the face of ecommerce and the Internet as whole. This is accomplished by instituting a 'naturally better website' attitude (meaning a website that needs no 'add-on enhancement after the fact') and enabling the rapid production of truly unique and genuine websites. With time, this technique will not only benefit the online merchant, but will also better serve online consumers and improve the quality of search engine results (SERPs) as well."

The acquisition of Online Development Associates by MerchandiZer establishes the Office of Online Development for the Company, directed by M'Lissa Dearing. Ms Dearing will oversee the development and maintenance of the MerchandiZer Software Inc. family of websites and the development of MerchandiZer's client sites with one of the most capable and dynamic web development teams in the industry. The Office will also coordinate development of new proprietary software and technology to facilitate its work and to improve the next version of MerchandiZer's eCommerce Shopping Cart Software Solution.

Some of the Office's services include premium blue chip development to selected "Merchant RS" program participants, such as specialized design and dynamic site development to be more search engine friendly than most ecommerce software is currently capable of; an online education course ("Ecommerce: Yesterday, Today & Tomorrow") for the participants in the "Merchant RS" program and their internal web team(s); expert perpetual content and data management on the site; comprehensive reporting and monitoring of the site and it's performance; and ROI Reviews each quarter to tailor the site's care to shifts in the Internet marketplace.

Ms. Dearing began her online career in 1995, before search engine optimization was fully understood. Ms. Dearing brings creative design flare, considerable online marketing and selling experience, and a proven strategy for integrating "best practices" into website development for prime search engine results page (SERP) positioning without the need for messy and costly "after the fact optimization" (a tactic most search engines frown upon). While practicing her online skills, Ms. Dearing's college and professional careers brought sales and consumer relationship management experience to her as well as new product development, branding and market placement, small business operations, management and finance, journalism and writing, and most recently, traditional search engine optimization experience which was an excellent base to step into MerchandiZer's new Office of Online Development. These seemingly unrelated pieces of experience in the work field come together to offer MerchandiZer clients a truly robust, "straight line" approach to Online Merchant Development.

Mr. Krister Martinez, President of the MerchandiZer Software Inc., in announcing the acquisition of Online Development Associates and the Company's new ability to increase web site exposure for MerchandiZer clients, stated: "We have been working very hard in the last few months to build on our award-winning software's reputation by adding an Online Marketing Control Panel feature to our software suite. Unlike our competitors, our software has integrated marketing tools that any merchant can use, and allows clients, like Gotoforms and many others, to have better exposure not only in the search engines' organic search results, but also to use other online marketing strategies such as visitor categorization for better targeted campaigns. We are now focusing on our marketing development to bring the features of MerchandiZer and its Online Marketing Control Panel feature to a broadening client base in the next few months including our traditional customers and our merchants under our new "Merchant RS" program. The combined capabilities of MerchandiZer and Online Development will increase our clients' web site exposure and should allow the Company to achieve additional gross revenues of $2,769,579.60 in 2006. We welcome M'Lissa to our team of professionals."

ABOUT SEAMLESS TECHNOLGY INC.:

Seamless Technology is a public holding company for Internet-based technology companies. It presently owns two established technology companies with excellent industry name recognition and reputations. The Company has located other synergistic businesses that it intends to acquire prior to the end of 2005.

The first subsidiary owned by Seamless is Pinneast Inc. (www.pinneast.com), an eleven-year-old e-Learning services provider, which is one of the only e-Learning companies that survived the shakeout caused by the bursting of the Internet bubble, because of its large government and Fortune 500 clients. The Company will recognize gross revenues in 2005 of a minimum of $1.1 million with an EBITDA of approximately $300,000. The Company's projected revenues should increase to a minimum of $2.265 million in 2006 and $3.3 million in 2007, with projected EBITDA of $823,000 in 2006 and $1.347,402 in 2007. The Company has achieved a sustainable level of profitability due to the multi-year contracts that it has with its clients. Furthermore, the Company has a present order backlog exceeding $1.3m, including 2 contracts from the US Army. Other customers of Pinneast include Dow Chemical, Wachovia, Volvo Trucks, Delta Airlines and Johnson and Johnson, among others. The Company offers web-based course management, learning management systems, LMS hosting and e-Learning technical support. Unlike its competitors, who offer a product that is one size fits all, Pinneast is capable of designing e-Learning products that are tailored to the specific needs of each client.

The second subsidiary is MerchandiZer Software Inc. (www.MerchandiZer.com), which is a seven-year-old eCommerce software company and service provider that provides end-to-end online services for small- to medium-sized companies that want to expand their marketing to the Internet sales channel. The Company's clients number approximately 3,000, with such well-known names as Dole Plantations, Total Discount Vitamins, Go-To Forms and Kids Customs. The Company's software has been awarded the PC Magazine's Editor's Choice Award as tops in its field. The key feature of the software is that it allows users to add customized design features, as opposed to most of its competitors that require that the merchant/client have a store that looks like all other stores utilizing the same software. MerchandiZer keeps its software up-to-date with the latest advances in Internet marketing, and its ecommerce software has an exclusive Internet marketing feature built into its software that allows the merchants/clients to optimize their entire catalog and categories for search engines, and achieve very high ranking, including the first and second pages in the search engines, such as Google and Yahoo! MerchandiZer also provides a wide range of templates that enable web designers to customize sites. This allows merchants/clients, without design flair, to build a respectable looking eCommerce site by simply picking pre-packaged design themes, and then choosing from the 30 built-in templates designed to suit every catalog layout requirement. The Company also aids its clients with web promotion and online marketing services, including Search Engine Optimization that increases the presence of the site on the web, and thereby attracts more customers to the client's site. The Company will recognize gross revenues in 2005 of approximately $200,000 with an EBITDA of $50,000. The Company is projecting gross revenues in 2006 of $1,800,000 increasing to gross revenues of $2,572,000 in 2007, with a projected EBITDA of $723,385 in 2006 and $1,470,000 in 2007.

Seamless has consolidated gross assets of over $4,400,000 and net shareholders equity of $3,100,000. The Company's consolidated revenues have increased from $388,000 in 2004, and a loss of ($451,000) to 2005 gross revenues of $1,300,000 and an EBITDA of $350,000. The Company, without considering acquisitions and other substantial projects under negotiation, is projected to increase gross revenues to $4,065,000 in 2006 and $4,873,000 in 2007, with projected EBITDA of approximately $1,366,000 in 2006 and 2,500,000 in 2007.

FORWARD-LOOKING STATEMENTS:

Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. The Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release; the Company will appropriately inform the public.

Distributed by Market Wire


 
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