However, a complete review and due diligence of WBU has been completed making
the audit of the new subsidiary just a formality as required by law. WBU is a
technology-driven company that developed proprietary technology to sell products
through the Internet.

In the short existence of one year, WBU has been able to reach the Platinum
seller status on EBAY and is close to reaching the highest level -- Titanium.
WBU designed a business model that allows the company to integrate with other
Internet sellers programs as well as with Paypal's system developers program.
All sales can be tracked immediately to allow for the quickest shipping time
possible.

WBU has been able to achieve and maintain a 99.5% satisfaction feedback rate or
higher on EBay. The shopping cart created by WBU has integrated a back-end
system to process orders, inventory, purchase ordering system, sales tracking
and an email system. WBU has been able to provide vendor integration into the
equation to create a more efficient process.

WBU's President estimates sales to reach over $150,000 USD per month by the end
of 2004. Additionally, he sees sales reaching $500,000 a month in 2005 in the
USA alone. However, immediate expansion to Countries in Europe and other
lucrative markets is in the process of being setup and sales through these new
web portals is expected to occur in the near future. Please visit www.wholesalebyus.com to get a better feel for the company. Additionally, STTC
will update it's website with all of the exciting and interesting things
happening.

Please visit our website at www.softnettechnology.com for more information or
call the company directly at 866-898-4842.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements made on behalf of the company. All such
forward-looking statements are, by necessity, only estimates of future results
and actual results achieved by SoftNet Technology Corp (STTC) may differ
materially from these statement due to a number of factors. STTC assumes no
obligations to update these forward-looking statements to reflect actual
results, changes in assumptions or changes in other factors affecting such
statements. You should independently investigate and fully understand all risks
before making investment decisions.

CONTACT: SoftNet Technology Corp.
James M. Farinella
(908) 204-9911

------------------
Whoever is first in the field and awaits
the coming of the enemy, will be fresh for the fight; whoever is
second in the field and has to hasten to battle will arrive
exhausted.
- Sun Tzu

BERNARDSVILLE, N.J., Aug. 23, 2004 (PRIMEZONE) -- SoftNet Technology (OTC BB:STTC.OB - News) announced today that the President and CEO purchased 300,000 shares of STTC in the open market. The purchases occurred on August 18, 2004 and August 19, 2004 at an average price of about 2.5 cents.
ADVERTISEMENT


This is the first time that the CEO, James M. Farinella, of STTC has purchased shares in the open market. However, this now marks the third time in the last couple of years that the President of the Company has invested his money into the Company. The other investments by Mr. Farinella were made directly into STTC. The Company is extremely pleased that the CEO has this much confidence in the future prospects of the Company by purchasing shares in the open market.

Just recently, SoftNet Technology, Corp. entered into a binding agreement to acquire WholesaleByUs, LLC as a wholly owned subsidiary. In the press release of August 10, 2004, the company stated that ``dramatic increases in sales...are expected over the next 6 months.'' A Form 4 has been filed as required with the SEC and can be viewed by going to the Company's website http://www.softnettechnology.com. Then click on the link for SEC Filings.

``I believe there exists great value in our Company,'' said Mr. Farinella. ``I can think of no better investment for me right now than to invest in my own Company. We appear to be on the verge of tremendous growth in sales. The Company's future appears brighter than it ever has.''

Please visit our website at http://www.softnettechnology.com for more information or call the company directly at 866-898-4842 (local -- 908-204-9911).

------------------
Whoever is first in the field and awaits
the coming of the enemy, will be fresh for the fight; whoever is
second in the field and has to hasten to battle will arrive
exhausted.
- Sun Tzu

--------------------------------------------------------------------------------

24-Aug-2004

Quarterly Report

Management's Discussion and Analysis

of Financial Conditions and Results of Operations

Introduction

The following discussion and analysis highlights the financial position of T & G2 (squared), Inc. (the "Company" or "us") at June 30, 2004 and compared to the second quarter ended June 30, 2003 and plan of operations for the six-month periods ended June 30, 2004 and 2003. Financial information contained within this report is condensed and reviewed. In the year of 2002 T & G2 (formerly known as International Mercantile Corporation) changed its name to the current name the Company goes under (T & G2), effectuated a 1 for 8 reverse split and acquired two companies - Solutions Technology and Zingo Sales. In July of 2004, the Company sold Zingo sales to a third party company. In the second quarter of 2004, the Company acquired Holtermann & Team GmbH, a German Based Company. Post June 30, 2004, The Company purchased Wholesalebyus, LLC as a wholly owned subsidiary. Subsequently, the name of the Company was changed to SoftNet Technology Corp to better reflect the business direction of the new Company. The business activities of the Company are now that of the wholly owned subsidiaries. Comparisons are provided below but the Company is not yet able to show a year-by-year comparison of business activities because of the change on business operations. In reviewing the Company's numbers in this report, it must be remembered that it essentially shows the first year of operations in the Company's two wholly owned subsidiaries. In 2002, the Company was mainly focused on research and development and testing of the new products developed in the subsidiary companies.

Certain statements in this Form 10-QSB, including information set forth under Item 2. Management's Discussion and Analysis of Financial Condition and Result of Operations constitute `forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Such forward-looking statements are identified by words such as "intends," "anticipates," "hopes," and "expects," among others, and include, without limitation, statements regarding the Company's plan of business operations, anticipated revenues, related expenditures, and the results of any business transactions. Factors that could cause actual results to differ materially include, among others, the following: acceptability of the Company's services in the market place, general economic conditions, political and economic conditions in the United States and abroad, and competition. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulations, the Company disclaims any intent to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.

Plan of Operation

The Company's management entered into a transaction for funding in the form of a debt financing. Additionally, business combinations with entities with significant cash and commitments for cash were accomplished in the last 6 months. Management is currently enhancing their business plan to incorporate the new subsidiaries acquired in this fiscal year, and is in process of trying to raise the appropriate funds to execute this business plan. There can, however, be no assurances that this money will be raised in the near future. Additionally, the Company achieved a listing on the third level of the Berlin Stock Exchange. Active trading for the Company's shares began in the first week of July 2004. Absent the Company's obtaining other sources of liquidity as described above, the Company's primary funding for ongoing corporate expenses, such as legal and accounting fees and filing fees, will be provided by the private sale of the Company's securities and from operating activities. Thereafter, in the third and fourth quarters, the Company anticipates to further expand and generate revenues from the sale of their time clocks and the continued growth of the new subsidiary, Wholesalebyus. The Company's management has had ongoing discussions with investment bankers pertaining to additional financing as a backup or second option in the case that the transaction already entered into by the Company does not completely fund. This would include a possible stair step-financing plan. This may encompass a first and second level of private placements, bridge financing, and mezzanine financing. However, there

can be no assurance management will be successful in these endeavors. However, with the listing on the Berlin Exchange and Frankfurt Exchange, the Company has greatly increased its chances of success for raising capital.

Liquidity and Capital Resources

For the six-months ended June, 2004, the Company used $279,906 in operating activities compared to $339,895 for the six-months ended June, 2003. The actual cash used was mainly for the marketing and distribution of the Company's products. The first and second quarter of 2004 shows an increase in actual cash used and the issuance of stock for consulting fees for the development of the Company's business operations. These increases were to improve the distribution for the current product lines and to increase the visibility of the Company in the business community. The Company has made significant progress with respect to future funding. Further funding is expected shortly, which will enable the Company to market, and produce its products. We anticipate that going forward; we will streamline administrative, and professional fees to conserve cash flow. Once the significant recognition of revenues occurs, certain expenses will increase, but only in accordance with the increase in revenues.

Going Concern. The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and at June 30, 2004, had a working capital deficit. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. However, the acquisition of Wholsalebyus brings significant cash flow to the Company and appears ready to grow very quickly in the coming months. It now appears that the Company has a realistic chance to reach cash flow positive by the end of the fourth quarter (December, 2004) of this year. The Company is also in the process of creating new distribution for the SecureTime System in numerous jurisdictions. On another note, The Company's wholly owned subsidiary, Solutions Technology, is now in the process of putting into place numerous distribution and sales agreements for the SecureTime System. It is anticipated that the new distribution currently being set up for the Time and Attendance product will begin to show significant gains in the near future. Solutions Technology is expected to begin contributing to the overall sales of the company in a significant way in early 2005.

------------------
Whoever is first in the field and awaits
the coming of the enemy, will be fresh for the fight; whoever is
second in the field and has to hasten to battle will arrive
exhausted.
- Sun Tzu

------------------
Whoever is first in the field and awaits
the coming of the enemy, will be fresh for the fight; whoever is
second in the field and has to hasten to battle will arrive
exhausted.
- Sun Tzu

Looks like a goodie all right! I don't want to chase it though - and have to sell something else at a loss to buy it - unless it just runs away at the bell.

2 Questions:

Do you think it will pullback after opening gap?

How high do you think it may go today/Monday?

Here I sit as Hurricane Jeanne is taking dead aim at Fort Lauderdale - but they're not sure yet where it will hit. Hurricane Watch is from So. Miami all the way up to St. Augustine. I should have left my shutters up after Ivan left town, before he came back to Gulf the other day!

4 MAJOR hurricanes in less than 6 weeks - INCREDIBLE!

Good Luck all,
Steve

I was never able to dump my TRHL to buy in and now I'm almost glad. Usually this kind of thing RUNS like CRAZY when I DON'T own it. As soon as I buy something - it usually stalls or drops!

Good Luck

SoftNet Technology Corp.'s CEO/President Purchases More Than 600,000 Shares of STTC in the Open Market

------------------
Whoever is first in the field and awaits
the coming of the enemy, will be fresh for the fight; whoever is
second in the field and has to hasten to battle will arrive
exhausted.
- Sun Tzu

Dog, make sure you hurry back. You've helped me greatly over the last several months.

To listen to the interview, interested parties should visit: http://www.stockguru.com

This now marks the 4th time in just over one month that the CEO of STTC has purchased shares in the open market. Even though the President/CEO has already acquired such a large position, he informs the company that he intends to further add to his purchases.

It is evident that the acquisition of Wholesalebyus, LLC has had an impact on his decision to purchase the shares in the market. However, the CEO has expressed his excitement about the recent developments with the SecureTime Biometric ID System developed by STTC's other wholly owned subsidiary.

"I am just so excited to see this company coming together and developing at a pace quicker and more robust than I first thought possible," said Mr. James M. Farinella, CEO/President of SoftNet Technology. "I feel even stronger about STTC with every day that passes. The Holiday season should really provide for a tremendous forward push for the overall company."

Four Form 4's have been filed as required with the SEC and can be viewed by going to the company's website www.softnettechnology.com. Then click on the link for SEC Filings. It should be noted that purchases were made from as low as 1.9 cents to as high as 4.2 cents.

Please visit our website at www.softnettechnology.com for more information or call the company directly at 866-898-4842 (local -- 908-204-9911).

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by SoftNet Technology Corp. (STTC) may differ materially from these statement due to a number of factors. STTC assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.

SOURCE: Softnet Technology Corp.

SoftNet Technology Corp.
(866) 898-4842 www.softnettechnology.com

Monthly revenue is expected to increase approximately more than 600% according
to WBU's President of operations. Monthly sales are to jump from about $25,000
per month in the 3rd quarter that just ended, to $150,000 in December of this
year. WBU expects sales to not only increase, but to expand going into and
through fiscal year 2005. New product lines are currently being set up for sale
on the WBU website as well as through the WBU network of Portals (eBay).
Additionally, STTC is now making available to WBU additional staff to help
manage and grow the sales.

Just this week, WBU completed the move to a new facility. While this move has
taken about 45 days to complete and has somewhat muted 3rd quarter results, it
will now allow for the rapid expansion of sales into and through the 4th
quarter. The Christmas season will be very strong for the company. However, it
is expected that the months following the Christmas Season will not experience
the usual drop off in sales typically seen. This is due to an enormous amount of
new products that will be brought to the WBU distribution channels in 2005.

WBU President sees sales reaching $500,000 a month in 2005 in the USA alone.
However, immediate expansion to Countries in Europe and other lucrative markets
is in the process of being setup and sales through these new web portals is
expected to occur in the near future. Please visit www.wholesalebyus.com to get
a better feel for the company.

In the short existence of one year, WBU has been able to reach the Platinum
seller status on EBAY and is close to reaching the highest level -- Titanium.
WBU has been able to achieve and maintain a 99.5% satisfaction feedback rate or
higher on eBay. The shopping cart created by WBU has integrated a back end
system to process orders, inventory, Purchase ordering system, sales tracking
and an email system.

Please visit our website at www.softnettechnology.com for more information or
call the company directly at 866-898-4842 (local -- 908-204-9911) James M.
Farinella, CEO.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements made on behalf of the company. All such
forward-looking statements are, by necessity, only estimates of future results
and actual results achieved by SoftNet Technology Corp (STTC) may differ
materially from these statement due to a number of factors. STTC assumes no
obligations to update these forward-looking statements to reflect actual
results, changes in assumptions or changes in other factors affecting such
statements. You should independently investigate and fully understand all risks
before making investment decisions.

------------------
'wid ma mind on ma money an' ma money on ma MIND!!!!!!!

Do Da Due!!!

RUFF!!!

------------------
'wid ma mind on ma money an' ma money on ma MIND!!!!!!!

Do Da Due!!!

RUFF!!!

It is anticipated that a minimum sale of 10% from these 4400 products will be achieved. The minimum expected sales will approximately add a $50,000 immediate increase in sales per month on top of the approximately $25,000 already being generated by WBU. This minimum of a10% increase does not take into account the increase in sales anticipated by the WBU staff for the upcoming holiday season. This expansion will continue to enhance WBU revenue and should lead to STTC far outpacing revenue projections heading into 2005.

Based on the historical sales data from the 2003 holiday season, when WBU only sold through EBay, sales for the combined company should easily surpass $150,000. However, this does not take into account the product additions that will be added to the WBU offering by year-end. In fact, WBU plans on having 10,000 plus products offered by the end of this week alone on EBay and Amazon combined. Expansion to more web portals is expected shortly.

The initial concept was to test 100 products, with the initial list on Thursday of last week. However, after reviewing the process, and the IT department developing the software connection to post in a more efficient manner, WBU posted an additional 4400 products on the Amazon site. This explosive development is yet another feat that furthers shows the talent and potential for growth exhibited by WBU.

Please visit our website at www.softnettechnologycorp.com for more information or call the company directly at 866-898-4842 (local - 908-204-9911).

SOURCE: SoftNet Technology Corp.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by SoftNet Technology Corp (STTC) may differ materially from these statement due to a number of factors. STTC assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.

BERNARDSVILLE, N.J., Oct. 18, 2004 (PRIMEZONE) -- SoftNet Technology (OTC BB:STTC.OB - News) (German WKN#: A0B7RZ) announced today that WholesaleByUs, LLC (WBU) experienced a dramatic increase in sales in just the first week on Amazon.com with 4,400 products for sale. Now, WBU took a further leap forward as a company by increasing the number of products for sale on Amazon.com to over 10,000.
ADVERTISEMENT


Just over a month ago, STTC's new wholly owned subsidiary, Wholesalebyus.com was offering only 150 products for sale on eBay.com. In just one short month, WBU has expanded its ability to provide increased exposure for other companies' products on the Internet to Amazon.com and eBay.com. Now, the product offering has increased over 6600% to more than 10,000 products. The genius displayed by the WBU management is not just in increasing the product offering, but increasing it at no additional cost to the companies that supply the product for sale through the WBU system.

In just the past week, with the increase to 4,400 new products offered for sale, daily revenue increased a dramatic 200%. This means that revenues for STTC will increase more than 150% in the month of October, even though more than one third of the month had passed before the increase in products was offered. However, a revenue explosion with even higher sales figures should be expected now that the product offering has been increased to over 10,000 products.

``We have the ability to provide suppliers, manufacturers, retail stores and the like an ability to exponentially expand the visibility and awareness for their products,'' said Mr. James M. Farinella, CEO/President of SoftNet Technology. ``Even more amazing is the fact that we increase the offering of products and improve pricing for the customer at the same time. There is no other way than to describe our technology as an engine for economic growth.''

Please visit our website at http://www.softnettechnology.com for more information or call the company directly at 866-898-4842 (local - 908-204-9911) James M. Farinella, CEO.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by SoftNet Technology Corp. (STTC) may differ materially from these statement due to a number of factors. STTC assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.

Contact:
SoftNet Technology Corp.
James M. Farinella, CEO
(866) 898-4842
local -- (908) 204-9911
www.softnettechnology.com