RICHARDSON, Texas, April 9 /PRNewswire/ --
Piranha, Inc. (OTC Bulletin Board: BYTE), an innovator in data compression
technology and digital workflow solutions, today announced its Board of
Directors has approved the spin-off of its wholly-owned Zideo subsidiary,
which will be in the form of a special stock dividend to Piranha shareholders.
    "The purpose of the spin-off is to enable Piranha and Zideo to be better
positioned to maximize operating efficiencies and growth opportunities for
each company," said Edward W. Sample, Chairman and Chief Executive Officer of
Piranha, Inc.  "We believe this spin-off is best for Piranha and for Zideo
and, in turn, best for all shareholders," he added.
    Piranha, Inc. will continue to focus on data compression technology, which
it markets to all industries including streaming media, wireless, medical
imaging and publishing.  Zideo will be a licensee of Piranha's technology and
will continue to provide encoding services for streaming media applications,
and through its subsidiary provide digital acquisition services for
universities, museums and libraries.
    It is anticipated that at the completion of the spin-off, estimated to be
July 1, 2001, approximately 8,611,455 common shares of Zideo will have been
newly issued.  Piranha, Inc.'s shares outstanding will not change as a result
of this spin-off.  Presently, Piranha has 14,722,909 common shares issued and
outstanding.
    Piranha shareholders will receive approximately 2,625,155 Zideo shares, or
about 30.5%.  For individual shareholders, this translates into 17.8 shares of
new Zideo common stock for every 100 shares of Piranha common stock owned.
Piranha will retain 55% ownership of Zideo, or approximately 4,736,300 shares.
    The remaining 14.5% of the new Zideo common stock, or 1,250,000 shares,
will be sold to investors to raise additional operating capital for Zideo as
an independent company.  All newly raised capital will be the responsibility
of Zideo management.  When all registration documents are completed, Zideo
intends to apply to the NASD for stock listing.  "With Zideo as a stand-alone
company, it can better focus on its operational and financial needs while
still benefiting from Piranha's technology as a licensee of Piranha's advanced
software," said Mr. Sample.
    Richard Berger, Chief Financial Officer of Piranha, explained, "The
benefits of the spin-off to Piranha and its shareholders are significant and
include:  greater focus by Piranha on its compression technology and several
new technological advancements that are in the development stages for release
later this year; better utilization of management and marketing personnel
aligned to the respective needs of Piranha and Zideo; license fees from Zideo
for the use of some of Piranha's core technology; substantially reduced
overhead expenses, thereby creating more earnings capabilities for each
company; and an additional dividend to shareholders in the form of separate
shares in Zideo, which will be able to pursue its own distinctive growth
potential.
    "We believe that the spin-off will assist in adding shareholder value for
Piranha," continued CFO Berger.  "Piranha's current share price is materially
undervalued given our technology and its business potential, and we will do
all we can to have market valuation better reflect the true value of our
products and earnings capabilities.  Moreover, Piranha is aggressively
pursuing partnering relationships and marketing alliances, and believes it
will be able to be pursue these more successfully and expeditiously under this
new operating structure," he added.
    Prior to the completion of the spin-off, a detailed Information Statement
will be sent to all Piranha shareholders.

    Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995:  Included in this press release are certain "forward looking"
statements within the meaning of the Securities Act of 1933, as amended.
Although the Company believes that the expectations reflected in such forward
looking statements are reasonable, actual results may differ materially from
those anticipated in the forward looking statements as a result of certain
factors including sales levels, retention, competition trends, and other
market factors.  This announcement does not constitute an offer of any
securities for sale or a solicitation of an offer to buy any securities.

     Contacts:
     Piranha, Inc.                      Strategic Resources, LLC
     Edward W. Sample, CEO              Investor Relations Counsel
     972-739-0373                       Jay M. Green, 212-590-2494
     edsample@piranha.com               jgreen@bestweb.net

     Richard Berger, CFO
     800-569-2434
     dberger@piranhabyte.com

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