Pacel Corp. Secures $5 Million Financing Commitment from Dutchess Private Equities Fund, L.P. and PLJ Limited

MANASSAS, VA--(BUSINESS WIRE) - - January 4, 2002 - Pacel Corp. (OTCBB: PLRP) announced today that it has recently secured a $5 Million Equity Line of Credit commitment from Boston-based Dutchess Private Equities Fund, L.P. and PLJ Limited.

Under the terms of the investment agreement, Dutchess and PLJ have committed, subject to several conditions and volume limitations, to buy up to an aggregate of $5 million of Pacel common stock from time to time over a thirty-six month period beginning upon the effective date of a registration statement to be filed with the Securities and Exchange Commission.

We have focused on evolving and enhancing our products and services. We hope that this financing will enable us to emphasize our endeavors on expanding our distribution of hardware and consulting services, the completion and deployment of current security technology product development as well as augment our domestic and international marketing and sales operation activities", stated Pacel CEO, David Calkins. We selected Dutchess and PLJ as our financing partners based on their expertise in financing and advising emerging growth companies. We look forward to a long and rewarding relationship with them".

Founded in 1994 and headquartered near Washington, DC, PACEL Corp. ("the Pacesetter in Internet Security") is a software development company that specializes in Internet and computer security software for home and corporate use. Further information about PACEL Corp. and its products can be found at www.pacel.com.

Further information about Dutchess Private Equities Fund, L.P., can be obtained at www.dutchessadvisors.com .

FORWARD-LOOKING STATEMENTS
When used in this document and in our filings with the Securities and Exchange Commission, in our press releases, or other public or shareholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from our historical results and those we presently anticipate or project. You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Various factors could affect our financial performance and cause our actual results to differ materially from any opinions or statements we express with respect to future periods in any current statements. These factors include, but are not limited to, the following: increases in our operating expenses outpacing our revenues; our inability to expand our sales and distribution channels, the failure of strategic relationships to implement and protect our software products, the failure of third parties to develop software components necessary for the integration of applications using our software; and the use of our intellectual property by others.
Source: Pacel Corp.
Contact: Davis Calkins