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February 1998

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"To: Press Contacts - From:" <[log in to unmask]>
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Wed, 18 Feb 1998 12:46:41 -0700
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For Immediate Release
http://www.datamerge.com/scor/ipo/investments/features.html


DataMerge Releases Instructional Manual That Helps Small Businesses Go Public And  Raise Capital Over The Internet Through a Direct Public Offering (DPO).

"Self-directed IPO, Raising Capital with SCOR" details various steps needed to raise money through the SEC's Small Corporate Offering Registration program using the internet to locate investors.

DENVER -- DataMerge, Inc. , a Denver-based developer of software and information for  companies seeking financing, today announced the release of "Self-directed IPO, Raising Capital with SCOR," a two-volume manual that guides companies first through the Small Corporate Offering Registration (SCOR)  process, and then the process of marketing the offering directly to investors.

The guide is unique in that it shows small businesses how to use  new and often little understood methods of locating investors over the internet, taking advantage of relaxed regulations for advertising and marketing smaller public offerings under SCOR.

For example, one section shows entrepreneurs how to use their web browser to locate potential investors from newsgroups who match their "optimal investor" profile, and then collect personal information (hobbies, etc.) that will help them  sell their offering to that individual. Another section provides html code that helps get the entrepreneur's web page rated higher on internet search engines for searches likely to be run by those fitting within their optimal investor profile.

SCOR was developed by the Securities & Exchange Commission (SEC) in 1992 as a way to help small business gain easier access to equity capital, while still satisfying SEC requirements. The goal was to devise a filing process simple enough for an entrepreneur to complete with minimal help from his corporate attorney and accountant,  yet thorough enough for full disclosure.

SCOR offers small businesses a low-cost, low-hassle alternative to filing a traditional Initial Public Offering (IPO) or private placement. Using  SCOR, companies can raise up to $1 million in equity capital annually by  selling stock, options, warrants, rights, notes or other debt securities every 12 months.

Companies who wish to take advantage of the SCOR program are required to file two forms, SCOR Form U-7 and Form D. The SCOR  Form U-7 was developed specifically for SCOR and is uniform for all  states. It has 50 questions and serves as the primary registration document. Companies file Form U-7 with each state in which they plan to  sell securities, and file Form D with the SEC.

In addition, the rules for filing a SCOR are significantly less restrictive than an IPO. For starters, stock sold under a SCOR can be freely traded in the secondary market, making the investment more liquid and thereby attractive to investors. And there are no restrictions on advertising the           offering and general solicitation of prospective investors.

DataMerge's two-volume Manual "Self-directed IPO, Raising Capital with SCOR," is divided into the SCOR Registration Guide and the SCOR  Marketing Guide. Encompassing 376 total pages, the manual provides background on the SCOR process and its evolution, step-by-step instructions for filling out Form U-7, sales/marketing techniques, samples of successfully completed registrations, and timetables of events.

"The real value-added of our manual is the SCOR   Marketing Guide," Kluesner said.  "Anybody can provide a blueprint of how to file a SCOR registration, but the real question is 'will the               filing be successful, will it raise money?"

"We developed our marketing guide  based on input from securities industry professionals and  investors who said that if an offering fails, it is most likely due to ineffective marketing, not registration difficulties."  "Their insights and recommendations are included,  making it much more likely that companies who use our manual to file a SCOR will be successful in raising  the capital they seek."

Self-directed IPO, Raising Capital with SCOR" is targeted at small business owners, chief  executive officers, chief financial officers, accountants, and anyone wishing to become a SCOR consultant. The cost of each manual is $249. Multiple order discounts are available.

For more information about the SCOR program and DataMerge's SCOR  manual, call (800) 580- 1188 or visit the company's website at  http://www.datamerge.com/scor.html.

Privately-held DataMerge was founded in 1989 by Spencer Kluesner, a former securities advisor  who today serves as chief executive officer of the 26-person company. "Self-directed  IPO, Raising Capital  with SCOR" and DataMerge's other products ( Financing Sources Databank , VentureTrack 2000 CD-ROM Infobase, Venture Capital Insights, Commercial Mortgage Insights, and LoanSource 2000) are sold directly to customers in the North America,  Western Europe and Asia.

                                   -- end --

For More Information
Email [log in to unmask]
Press Contact: Peter Masi [log in to unmask]
Sales: 303-757-6298

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