Ottawa, Canada, January 8, 2001 - Precidia Technologies Inc. announced today the successful implementation of its internetworking solution to IP enable Chapters financial transactions. The installation, which was completed on schedule and on budget between August and October 2000, involves 77 stores across Canada. The solution allows Chapters to bring its debit and credit transaction traffic onto its existing IP network, eliminating the cost of a separate data line.

"Precidia's solution has allowed Chapters to realize substantial cost savings," said Tony D'Alessandro, Director of Systems Development, Chapters Inc. "By bringing our transactions onto one IP network, we have eliminated the need for a separate data line. The solution is transparent to our existing network, and not only performed smoothly in the first months after installation, but continued to operate flawlessly in the peak retail months of November and December. This is just another example of the technology leadership Chapters has championed in the retail industry."

Precidia President Deepak Wanner says the implementation demonstrates how the company's unique technology solutions can simplify network management and help retailers achieve cost savings: "Chapters needed a solution which would more fully utilize their existing IP network, while eliminating legacy telecommunications costs. By installing Precidia's Ether3201 on their network, they have achieved both goals. We are pleased to have had the opportunity to work with Chapters and their other partners in this installation, especially the Bank of Montreal," said Mr. Wanner.

About Chapters Inc.
Chapters Inc. is a Canadian company formed by the 1995 merger of Coles and SmithBooks. Chapters is Canada's largest book retailer operating stores in all provinces including more than 200 traditional bookstores under the banners Coles and SmithBooks, and 77 book superstores under the Chapters banner, as well as the World's Biggest Bookstore in Toronto. For more information about Chapters, please visit the website www.chaptersinc.com.

About Precidia Technologies
Precidia Technologies Inc. is a global leader in the design and manufacture of IP access devices for a wide range of industries, including retail payments and building automation. With customers in over 75 countries, Precidia's unique product line of wired and wireless access devices seamlessly migrate stand-alone serial and dial equipment onto more sophisticated IP networks. For more information, visit Precidia on the Web at http://www.precidia.com.