Mergence Corporation Set to Spin Off its First Subsidiary

Company Resets Record Date for Oxford Media Corporation Spin-Off


IRVINE, Calif., Feb. 25, 2004 (PRIMEZONE) -- Mergence Corporation (OTCBB:MRGN), a holding company that provides merger and acquisition services to companies, announced that it has set a record date of March 31, 2004 for the proposed spin-off of its Oxford Media Corporation subsidiary. Mergence's Board of Directors authorized the spin-off as part of the Company's strategy to pursue new market opportunities, growth and to increase shareholder value. As the result of the spin-off, shareholders of Mergence common stock will own 100% of Oxford Media Corporation.

According to Tom Hemingway, Chairman and CEO of Mergence Corporation, "We have determined that our Oxford Media Corporation subsidiary could be a very lucrative business. With the audits and regulatory approvals in progress, we are now entering the final stages of the spin-off process. Since Oxford Media acts independently of Mergence Corporation and will move forward on its own schedule, we feel stockholders should benefit through a separate class of stock whose performance will be reflected by its business activities. I feel now is an opportune time to reward our shareholders for their ongoing support."

Oxford Media Corporation subsidiary will be focused on the emerging movie-on-demand marketplace designed primarily for the hotel sector. The subsidiary is currently developing and testing potential new products with the intention of forming licensing and commercialization agreements.

About Mergence

Mergence Corporation, founded in 1994, is a Delaware corporation with headquarters in Irvine, California. Mergence is a parent company for wholly owned subsidiaries which are in the emerging movie-on-demand marketplace, primarily for the hotel/motel sectors and software technologies industries. Mergence Corporation provides merger and acquisition services to companies with promising services and/or products.

Safe Harbor

Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, the ability to negotiate outstanding prior debts of acquired companies; properly identify acquisition partners; adequately perform due diligence; manage and integrate acquired businesses; react to quarterly fluctuations in results; raise working capital and secure other financing; respond to competition and rapidly changing technology; deal with market and stock price fluctuations; and other risks. These risks are and will be detailed, from time to time, in Mergence's Securities and Exchange Commission filings, including Forms 10-KSB, 10-QSB and 8-K. Actual results may differ materially from management's expectations.



            

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