FOR IMMEDIATE RELEASE

Media Contact:
Andrew M. Rose
Marketing Ink, Inc.
(954) 428-2678
andy@marketingink.net

SHAREHOLDERS FILE CLASS ACTION LAWSUIT AGAINST MIAMI-BASED E-REX
Allegations Against Technology Company's Officers and Directors Include Insider Stock Deals, Fraudulent Dilution of Shares and Misuse of Investors' Funds

MIAMI, FL (February 14, 2002) - A major group of shareholders in E-Rex (OTC BB: EREX) has filed a class action lawsuit against the Miami-based technology development company, its officers, directors, attorney and law firm, and two associated companies.

The shareholders are alleging that the E-Rex officers and directors engaged in insider stock deals, fraudulent dilution of shares, misuse of investors' funds, corporate mismanagement, breach of fiduciary duty and other wrongdoings.

"It has been a difficult battle against an entrenched group of very questionable characters who evidently have blatantly mismanaged this company for personal gain in violation of their fiduciary responsibilities to E-Rex and its shareholders," stated Chris Ford, who is trustee of the Carol Gamble Trust, one of the largest E-Rex investors.

"However, this lawsuit is only one part of a multifaceted coordinated program to replace current management and have E-Rex move forward and take advantage of market opportunities," he added. Ford said that the E-Rex shareholders have been working closely with various federal government agencies, law firms and SageGroup Strategies, the national Professional Troubled-Company Specialist firm.

Ford said that shareholders have contributed large dollar amounts to E-Rex in the past few years in an effort to fund the prototype development of an advanced technology product called the Dragonfly. E-Rex management had said that the prototype was scheduled to be completed by December 2000. While the amount contributed by shareholders has far exceeded the development cost estimates prepared by E-Rex management, a prototype has still not been completed.

Instead, the suit alleges, those shareholder funds were regularly diverted into the hands of E-Rex's corporate officers and directors and various shell companies. As a result, the Dragonfly is still in the development stage, and E-Rex has failed to make its scheduled payments to Valcom Ltd., a Canadian wireless communications technology and defense contractor that has been working on the prototype.

Ford, who is a leader of the shareholders group, estimates that as many as 1,000 shareholders could become involved in the class action suit, which seeks damages for investors and the appointment of new management for the company.

In addition to E-Rex, the lawsuit's defendants are President and CEO Carl Dilley, Chairman Donald Mitchell, Director Joseph Pacheco, former Director/Treasurer Jeffrey Harvey, Attorney Brian LeBrecht and The LeBrecht Group law firm, as well as DiveDepot.com, Inc., and International Investment Banking, Inc., two associated companies.

The lawsuit charges that the market price of E-Rex's common stock was artificially manipulated. "We also believe that the defendants misrepresented the company and made misleading statements to shareholders, as well as fraudulently diluting the value of E-Rex stock by wrongfully issuing shares to insiders for their personal compensation and benefit," Ford said.

The shareholders' suit (CV-S-02-0145-DWH-LRL) was filed Feb. 1 in U.S. District Court in Nevada, where E-Rex was incorporated in 1986. The suit notes that E-Rex lost $8 million for the year ending December 31, 2000, compared with a loss of $464,000 the prior year. In mid-2000 shares in the company sold for about $1.25 a share, although E-Rex had no revenue and a negative book value. E-Rex stock is currently trading at a few pennies per share.

The Federal Bureau of Investigation (FBI) and the Securities and Exchange Commission (SEC) have already contacted many shareholders and others as part of their current investigations of E-Rex and other defendants.

Another recent related development is that defendant Dilley has notified the SEC that E-Rex has elected to withdraw a pending Registration Statement because of the substantive nature of certain SEC comments given by phone to E-Rex's attorney.

However, many shareholders and professional advisors are confident that E-Rex will be able to move forward once current management is replaced. As Larry Lindsey, managing director of SageGroup Strategies, explained, "E-Rex has several business possibilities that relate to the building of value from a business perspective."

Lindsey said that two possibilities relate to existing opportunities within the company: the Dragonfly product and the providing of various business services. Another set of possibilities relates to potential acquisitions of certain attractive private companies by publicly-traded E-Rex. A third set of possibilities relates to potential civil lawsuits by E-Rex (under new management) against various firms and persons whose actions have damaged the company in various ways.

For more information regarding the E-Rex situation, including the shareholders' lawsuit, please contact Andrew M. Rose, Marketing Ink, Inc. at (954) 428-2678, (954) 234-5806 (cell 24/7) or andy@marketingink.net.