Update on Amalgamation with Technovision

FOR IMMEDIATE RELEASE   Tuesday, October 1, 2002
   (No. 2002-10-03)
Contact:   Investor Relations
   Phone (604) 662-4577 or 1-888-272-0222
   corporate@axion.net

Update on Amalgamation with Technovision

Vancouver, BC (October 1, 2002) - Axion Communications Inc. (TSX VE: AXN) and Technovision Systems Inc. (TSX VE: TVS) are pleased to announce that the shareholders of each company have approved the amalgamation of the companies on the basis of the amalgamation agreement originally announced November 29, 2001 by which Technovision shareholders will receive one share of the amalgamated company (Amalco") for each common share of Technovision and Axion shareholders will receive one share of Amalco for each 1.65 common shares of Axion. The amalgamation remains subject to approval of regulatory authorities and of the Supreme Court of British Columbia. The name of Amalco will be Technovision Systems Inc.

Technovision and Axion have also entered into an operations merger agreement to obtain, before the amalgamation, lower operating costs for both companies. The operations merger will result in Technovision providing internet access services to Axions internet customers as well as technical support, accounting, customer service and management services. Once the operations merger is complete, which is expected to take 30 to 45 days, the cost to Technovision of providing these services will be approximately 50 percent of the present cost to Axion to deliver the comparable services. The savings will benefit both companies and Amalco.

As part of the amalgamation, Technovision will be assuming approximately $1,000,000 of Axions liabilities, a portion of which liabilities must be paid within 4 months. During this time, Technovision may be required to obtain additional financing if the operating efficiencies are insufficient to produce the required funds. If Technovision is unable to make such payments, each company may incur penalties from their creditors, which, if enforced, would result in them being unable to recover financially.

The management of both companies believe that the operations merger and the amalgamation are necessary to ensure the combined company operates efficiently and is positioned for growth.

About Technovision Systems Inc.
Technovision (TSX VE: TVS) is a publicly traded company listed on the TSX Venture Exchange. TVS has 16,614,894 common shares currently issued and outstanding. Technovision is one of the largest independent full service internet communications companies in British Columbia providing internet connectivity (through both dial-up and ADSL modems), consultation and web services. Technovision also has points of presence in Alberta and Ontario. For more information visit www.tvs.net.

About Axion Communications Inc.
Axion Communications Inc. (TSX VE: AXN) is a publicly traded company listed on the TSX Venture Exchange. It is a full service internet provider offering both residential and corporate dial-up, high-speed ADSL services, dedicated connectivity and a complete range of associated Internet products including web site storage services and consultation. Axions commercial operations commenced in 1995 and have expanded to many areas of British Columbia. Axion has received the Vancouver Consumers Choice Award" in the category of Internet Service Provider for the last three years in a row. Axion has 11,278,081 common shares currently issued and outstanding. For more information visit www.axion.net.

ON BEHALF OF THE BOARD OF             ON BEHALF OF THE BOARD OF
TECHNOVISION SYSTEMS INC.                 AXION COMMUNICATIONS INC.

William Spratt"                Praveen Varshney"

William Spratt, President   Praveen Varshney, President

THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE INFORMATION CONTAINED HEREIN.