DIGITAL ARK MERGES WITH PACIFIC COAST NET

Pacific Coast Net Inc. completes merger with Irenyx Data Group Inc. (Digital Ark Internet Services and Connected Internet); The Comox Valley's largest independent Internet Service Provider

Victoria, British Columbia, November 1, 2000

Pacific Coast Net Inc., the largest privately-owned independent Internet Service Provider (ISP) in British Columbia, has purchased Irenyx Data Group Inc., the largest ISP serving the Northern half of Vancouver Island region of British Columbia, and will merge the two companies. The merger will create Vancouver Island's largest independent ISP, and vault Pacific Coast Net Inc. into the top ten list of Internet Service Providers in Canada.

Pacific Coast Net (www.pacificcoast.net) whose head offices are located in Victoria, British Columbia, is a new media and communications technology solutions provider that both directly and through its affiliates Silk.net, BC1, Connexus, First Run, and Paradon, provides Internet access, web hosting, cable TV services, web design services, network services, computer hardware/software and e-commerce products to customers from Hamilton, Ontario west to Vancouver Island.

Digital Ark (www.ark.com) located in Courtenay and Campbell River BC, has, (with its recent acquisition of Connected, a Campbell River based ISP), over 8000 subscribers and is the dominant privately held ISP in the region.

"This merger will enable Digital Ark to introduce new broadband or high speed Internet access products like ADSL and a business cable product as well as cable TV to their customers that simply are not available for them today" said Reed Sumida, President of Pacific Coast Net. "We want to bring more value to an already very strong product line offered by Digital Ark."

Both companies anticipate no job losses from the merger, as the existing Digital Ark staff will continue to manage and operate Digital Ark from their downtown Courtenay office.

"It's business as usual" said Kevin Battersby, who with his wife Terri were the principals of Irenyx. "This merger will be invisible to Digital Ark customers except they'll have more products to choose from. Digital Ark gets the best of both worlds through this merger, more products for its customers, and the buying power of a larger company. We anticipate significant growth will occur in Digital Ark as a result of our merger with Pacific Coast Net."