LOS ALTOS, CA -- (INTERNET WIRE) -- 08/05/2002 -- Inclusion Technologies, Inc. (OTCBB: IINC) today announced that it has finalized its acquisition of Flypaper Inc., a leading enterprise collaboration software and professional services firm. In addition, Flypaper's lead investor, Vanguard Ventures, along with other Flypaper investors, announced a strategic investment in Inclusion Technologies.

"Flypaper has built a compelling product, and customers have told Flypaper they would prefer to purchase from a full solutions company such as Inclusion Technologies", said Dan Eilers, General Partner at Vanguard Ventures. "Inclusion's delivery system provides an integrated knowledge technologies solution including consulting, professional IT services and an array of software; we believe this will support the growth of Flypaper more rapidly than would be true of Flypaper as a stand-alone company. We have backed up our belief in this strategy and Inclusion's team with a further investment in them."

Flypaper's team collaboration platform brings together people, process and technology to greatly accelerate business processes by centralizing information and creating clear channels of communication between each team member. Their TeamSpaceT software and business process consulting practices serve leading enterprise customers such as Texaco, Charles Schwab, Johnson & Johnson, and Hewlett-Packard.

"Flypaper is one of our early acquisitions in the knowledge technologies marketplace," said Martin Nielson, CEO of Inclusion Technologies, Inc. "This acquisition deepens our commitment to deliver 'Connective Wisdom through Effective Work' across a diverse customer base and adds significant value to the collaborative software and consulting solutions we deliver to the enterprise. We are in active discussions with over 12 other target companies that deliver complimentary products and services to support our growth plans."

Flypaper provides an enterprise collaboration platform based on revolutionary web-services architecture. Unlike traditional collaboration products that prove difficult to customize and hard to scale to enterprise-class use, Flypaper is built on a carrier class hosting environment, ensuring easy customization, rapid development time, and low costs.

"Flypaper's offering provides a neat complement to our Intra.NetT Information Management System solution - enabling us to offer customers a portfolio of software to suit various needs," said Suresh Mathai, President of Inclusion Technologies, Inc. "We have plans in place to integrate several parts of the operation to gain efficiencies, and to support Flypaper's software offering with the consulting and engineering services we already have in place."

About Inclusion Technologies, Inc.:
Inclusion is fast becoming one of the industry's leading providers of software and services for intelligent, interactive communications across enterprises and marketplaces. Inclusion customers leverage their most important assets - - human and intellectual capital - - by capturing and re-using knowledge that is created while people work. Customized and highly secure, Inclusion's technology is typically deployed as enterprise portals, supply chain collaboration, intranets/extranets, project management, new product development, marketing automation, and workgroup communication. Founded in 1997, Inclusion is an international knowledge technology company, headquartered in Los Altos, California with operations and subsidiaries in Canada, Japan and the United Kingdom.

Further information about Inclusion Technologies, Inc. is available at www.inclusion.net.

Inclusion Technologies
4966 El Camino Real, Suite 100
Los Altos, CA 94022

Safe Harbor/Forward-looking Statements:
Statements in this news release that are not historical are forward- looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in any forward-looking statements, all of which are difficult to predict and many of which are beyond the control of the company, including areas such as: developing technologies; dependence on collaborative partners; the inherent complexity and uncertainty regarding the development of products; early-stage development of Inclusion; the result of research and development efforts; future capital needs; uncertainty of additional funding; government regulations; and other factors which are detailed in the company's periodic reports and registration statements filed with the Securities and Exchange Commission. Inclusion does not undertake to revise or update any forward-looking statement to reflect events or circumstances that may arise after the date hereof.

Contact:
Contact: John Duhring
Company: Inclusion Technologies, Inc.
Title: VP, Marketing
Voice: 650-938-8960 x607
URL: www.inclusion.net
Cell: 415-609-5728