RES Inc. Investment Plan Cancelled

PRESS RELEASE

JULY 7, 1998 OTTAWA: RES International Inc. announces that the major investment from AlphaCell Technologies Inc. announced previously cannot proceed. As a result, the proposed transaction with MITECH Computer Systems Inc. of Montreal will also not proceed. MITECH and RES Inc. continue to cooperate in the joint marketing of their respective products. RES Inc. is in discussions with a potential partner in the Internet business directory and advertising field over investment, technology sharing and market access.

RES Inc. develops software products for electronic commerce on the Internet. Concerning the core product of RES Inc., the Company has proven through benchmarks and technical analysis that RES-Reach (TM) remains of superior quality. In addition to the products RES-Cybermall and RES-Purchaser, the Company is releasing two ancillary products in August: RES-Catalog enables merchants to set up their catalogs quickly and start doing business without major costs; AD+ allows merchants on an electronic mall to break down their banner ads into individually addressable mini-ads or offers, with response-tracking. RES Inc. has been appointed as a Certified Technical Partner of CyberCash Inc., the premier supplier of payments security for E-Commerce; RES Inc. is presently the only Canadian firm with this designation.

RES Inc. is traded on the CDN (RESZ), is quoted on the U.S. Electronic Bulletin Board (RSIIF), and has about 31,000,000 shares outstanding. Trading in RES stock was halted on June 16 because of the pending announcement, and trading resumes today.

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