Press Release Aug 9, 2002

WE ARE PLEASED TO ANNOUNCE THE ARRIVAL OF NEPAL'S FIRST BRANDED PERSONAL COMPUTER BEING LAUNCHED BY MERCANTILE SOLUTIONS PVT. LTD. ON FRIDAY, AUGUST 9, 2002.

ATTACHED IS A SHORT PRESS STATEMENT WITH DETAILS ABOUT THE NEW COMPUTER. IF YOU HAVE ANY FURTHER QUESTIONS, INQUIRIES OR REQUESTS FOR INTERVIEWS PLEASE CALL 255415 OR EMAIL sales@mercantilepc.com.np. A PHOTOGRAPH OF THE NEW COMPUTER IS ENCLOSED.

MERCANTILE LAUNCHES NEPAL'S FIRST BRANDED COMPUTER.

FOR THE FIRST TIME IN NEPAL

MERCANTILE, THE PIONEER IN THE IT SECTOR INTRODUCES ITS MUCH-AWAITED MERCANTILE PERSONAL COMPUTERS. MERCANTILE HAS LAUNCHED 2 MODELS: "PROFESSIONAL" BASED ON INTEL P4 1.7GHZ PROCESSORS FOR GRAPHICS USERS AND "EXPLORER" BASED ON INTEL CELERON 1.7GHZ PROCESSORS FOR HOME USERS. ALL THE COMPONENTS INSTALLED IN THE MERCANTILE PERSONAL COMPUTERS ARE OF INTERNATIONAL STANDARDS. MERCANTILE PLANS TO INTRODUCE MORE MODELS IN THE FUTURE BASED ON MARKET REQUIREMENTS.

THE MERCANTILE PERSONAL COMPUTERS COMES WITH A 2 YEARS PARTS AND SERVICES WARRANTY. ANY MANUFACTURING DEFECTS IN ANY OF THE COMPONENTS INSTALLED IN THE COMPUTERS WILL EITHER BE RECTIFIED OR REPLACED WITHIN 48 HOURS FROM THE TIME OF RECEIPT OF THE SYSTEM IN THE MERCANTILE WORKSHOP. ANY DEFECTS IN THE SYSTEMS WILL HAVE TO BE BROUGHT TO THE MERCANTILE WORKSHOP.

THE MERCANTILE PERSONAL COMPUTERS ARE SENT THROUGH A SERIES OF CHECKS FOR EACH OF THE COMPONENTS AND IS PUT ON A BURN TEST FOR OVER 8 HOURS. THE BURN TEST IS A PROCESS IN WHICH ALL THE COMPONENTS INSTALLED INSIDE THE SYSTEM ARE TESTED OVER AND OVER AGAIN FOR ANY DEFECTS THROUGH A SPECIAL SOFTWARE. THE SYSTEM DOES NOT LEAVE THE ASSEMBLY LINE UNTIL IT PASSES THROUGH ALL THESE TESTS AND IS QUALITY CERTIFIED BY TRAINED ENGINEERS.

DURING THE LAUNCH PERIOD, THE MERCANTILE PERSONAL COMPUTER COMES ALONG WITH FREE DUST COVER, MOUSE PAD, POWER STRIP WITH SPIKE PROTECTOR, UTILITIES CD AND 100 HOURS OF INTERNET.

THE PRICE OF THE SYSTEM STARTS FROM Rs. 50,000 UPWARDS INCLUSIVE OF VAT DEPENDING ON THE MODEL AND CONFIGURATION.