Meridex Software Nasdaq pinks:MSCLF
Opinion - strong buy

I had a few questions about MSC, specifically why the stock
has moved down in price. There is nothing wrong business
wise. Their sales are very strong and they have actually
received a large amount of new orders. Their business has
never been better.

With the recent 2 acquisitions closed, the company is
running at a revenue rate of about $10 million per year. The
stock is a real bargain and kind of ridiculous that it is at
the lowest price at a time when the fundamentals have never
been better.

The problem has been some indiscriminate selling of stock by
a couple insiders. You may remember, about 2 1/2 months ago
the company made two additions to the management team and
they were to be compensated by stocks and options only. It
was thought that these were wealthy individuals that really
did not need money short term and they believed in the
company and its future, hence a higher stock price. I
believed and so did the board of directors that these were
good additions to management and they would not be sellers
of the stock but perhaps even buyers. As it turned out, they
were just dumping the stock they received on the market with
sell orders.

This problem has now been resolved because they are no
longer employed with the company and they have sold all the
stock they did own.

This is the selling that drove the stock down and probably
the lower stock price caused additional selling because of
nervous longs watching the price fall and technical support
breached on the stock chart, plus some year end tax loss
selling.

Now that the source of this selling is gone, the stock
should move back up, so therefore I believe it is an
excellent price and a very good bottom fish.

More confidence will come back as the stock rises and the
company makes announcements on business progress.

If you bought at higher levels, it is an excellent time to
average down and if you don't own a position, perhaps a
new subscriber, a price in the $0.70s is an excellent
buy price.

Meridex Website http://www.meridex.com

Meridex - Tom Birkland 604-231-3707 1-877-637-4339

November 3, 2004
Meridex has broken out and traded as high as $1.40 (CAD-tsx) recently. I expect
the stock will test the $2.00(CAD-tsx) resistance area on this rally.

After the market today, the company is presenting to brokers/analysts
in San Francisco, sponsored by the brokerage firm who will sponsor
Meridex for a Nasdaq OTC listing, that listing could occur this month
sometime.

Another thing that is very impressive, Meridex has been selected
along with four other companies (the top 5) for a conference sponsored
by the TSX Venture exchange in Calgary and Toronto. These are the top
five companies selected each year that are expected to move up to the
TSX (Toronto) exchange. Brokers/analysts and fund managers are the
audience at these two conferences and these events will bring a lot of
exposure to Meridex with the right people.