PARADIGM ADVANCED TECHNOLOGIES, INC. CLOSES AGREEMENT TO ACQUIRE NAFTELS NAVIGATION TECHNOLOGY; FORMS NEW R&D DIVISION

World-class next generation map data compression and rendering technology will enable advanced new navigational applications on PDAs, cell phones, and other hand held devices

Toronto, Ontario -- February 20, 2001 - Paradigm Advanced Technologies, Inc. of Toronto (OTCBB:PRAV), (www.powerloc.com) announced today that it has successfully closed its agreement with NaftEL Technologies Ltd. of Israel (www.nafteltech.com) to acquire all of NaftELs assets including NaftELs advanced navigation, location and communication technologies, as well as a portfolio of patents. This acquisition is an all-stock transaction financed by the issue of shares and stock options.

With the closing of the agreement, Paradigm has formed a Research and Development entity in Israel called GPSoft Ltd, which will focus on the development of state-of-the-art wireless navigation, location and communication systems. As a result of the acquisition, Paradigm is hiring 11 highly qualified NaftEL engineers and scientists who have considerable experience in the navigation and wireless location industries.

The NaftEL acquisition falls within Paradigms business model, which is to develop, secure and acquire related intellectual properties. Paradigm owns the exclusive licensing rights to a broad-based wireless location patent (US Patent #B1 5,043,736) covering the apparatus and method of transmitting position information obtained from satellite navigational systems (like GPS) over cellular systems to a base unit.. With NaftELs asset acquisition, Paradigm has now acquired a portfolio of international pending patents in the areas of map rendering, communications and navigation systems that Paradigm intends to leverage with its new advanced wireless location solutions. One of these patents is related to a proprietary map rendering and formatting algorithm which allows a reduction in the amount of memory necessary to store vector maps by a factor as high as 1:16. This dramatic reduction will make it possible to implement full-featured navigation and location solutions systems in hand held devices such as PDAs, cell phones and watches.

The acquisition of NaftELs leading-edge portable navigation technology provides Paradigms PowerLOC division with a portfolio of powerful cutting edge technologies that will further improve our L-BIZ architecture," said Paradigms President/CEO, Eduardo Guendelman. We believe that the first products implementing NaftELs technologies will be launched during the next quarter. With this acquisition, Paradigm is buying technology, skills, market opportunities and new products and we expect to accelerate our penetration into the large and rapidly-growing PDA market with a family of hand held devices which leverages the NaftEL technology."

NaftEL was established in Israel by Elie Hantsis and Naftali Nissani, who combine a wealth of scientific, engineering and business experience. Most of the companys employees are telecommunications and navigation software engineers and scientists, five of whom hold Ph.D. degrees.

Our partnership with Paradigm offers unusual synergy and represents a perfect convergence of two complementary technologies," said NaftELs CEO Elie Hantsis. This agreement provides Paradigm with dynamic new complementary technology for its wireless location technologies, and provides us with the sales, marketing, technical and administrative resources we need to exploit the sale of our technologies. It makes it easier for us to enter into powerful new strategic alliances to provide new integrated solutions for the global portable wireless location market."

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About Paradigm Advanced Technologies, Inc.
Headquartered in Toronto, Paradigm Advanced Technologies, Inc. (www.powerloc.com) provides wireless location-based electronic commerce (L-Commerce) solutions. Paradigm owns the exclusive licensing rights to a broad-based wireless location patent (US Patent #B1 5,043,736) covering the apparatus and method of transmitting position information from satellite navigational signals (like GPS) over cellular systems to a base unit, and displaying the location of a person or object so equipped. Paradigm's ownership covers all fields of use for the patented system, excluding criminal justice applications. Paradigm wholly owns PowerLOC Technologies Inc. and Power Point Micro Systems Corporation. PowerLOC anticipates providing a comprehensive range of L-Commerce and L-Business products and services including a family of proprietary wireless-location devices for this emerging industry and for location-based service providers (LSPs) in particular.

Paradigm is also listed on the Frankfurt Stock Exchange - symbol - PG8.

For additional information, please call CFSG at 800-625-2236. Visit Paradigm's web site at www.powerloc.com that showcases some of its advanced new wireless location technologies and products.

This press release contains forward-looking statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Paradigm Advanced Technologies, Inc., and its business. The predictions embodied in these statements will involve risks and uncertainties and accordingly, Paradigm's actual results may differ significantly from the results discussed or implied in such forward-looking statements.

For Paradigm:Public Relations:
Stanley Wunderlich, President
Consulting for Strategic Growth
800-625-2236
cfsg@iname.com

For Paradigm
Media Relations:John Sacke, President
Sacke & Associates
416-218-1102
johns@sackepr.com

For Paradigm:Investor Relations:
Selwyn Wener, CFO
Paradigm Advanced Technologies, Inc.
905-764-3701 Ext. 229
swener@powerloc.com