SWWT, Inc. to form an Internet-focused holding company to acquire
properties in media, music, entertainment, and consumer applications.

SWWT, Inc. (SWWT: OTCBB) has entered into a merger agreement with E-Newco Inc.,
a company founded by Jon Diamond, to form an Internet holding company that will
fund early-stage Internet properties and acquire existing companies focused on
media, music, entertainment, and consumer applications.

The company will pursue a strategy of building a community of Internet companies
in various related fields. The company will provide operational, infrastructure,
and capital support, access to strategic partnerships, and brand expertise to a
family of Internet companies. The company will be renamed at a later date.

Under the merger agreement, SWWT will issue 757,772 shares of its convertible
preferred stock to the stockholders of E-Newco in exchange for their shares of
E-Newco common stock and E-Newco will become a wholly owned subsidiary of SWWT.
The convertible preferred stock of SWWT will automatically convert into an
aggregate of 75,777,162 shares of common stock of SWWT following the approval by
the stockholders of SWWT of the requisite increase to the amount of authorized
common stock of the company and the receipt by SWWT of additional equity
financing of at least $15.0 million. The holders of the convertible preferred
stock of SWWT to be issued in the merger will vote with the holders of the
common stock of SWWT on an as converted basis and will possess approximately
95.5% of the voting power outstanding after the closing. Upon completion of
these transactions but without giving effect to the receipt of the additional
equity financing, SWWT will have outstanding approximately 79.3 million shares
of common stock, on an as converted and fully diluted basis, of which the
current stockholders of E-Newco will own approximately 95.5%.

 If SWWT does not receive additional equity financing of at least $15.0 million
within 180 days of the consummation of the transactions contemplated by the
merger agreement, the holders of the common stock of SWWT may elect to cause the
company to redeem the outstanding shares of convertible preferred stock at a
redemption price equal to a pro-rata portion of SWWT's cash balance, if any, at
the date of redemption.

In addition, SWWT has declared a one-time cash dividend to its pre-merger
stockholders in an amount equal to the cash on SWWT's balance sheet at the time
of such dividend, less expenses related to these transactions and the settlement
of certain outstanding claims. The payment of the dividend is conditioned on the
closing of the transactions contemplated by the merger agreement.

In connection with the transactions contemplated by the merger agreement, three
of the current directors of SWWT will resign as members of the board of
directors of SWWT, and Mr. Diamond and two other designees of E-Newco will
become members of the board. In addition, Mr. Diamond will become the Chairman
and Chief Executive Officer of SWWT.

Following completion of the transactions contemplated by the merger agreement,
SWWT expects that its stockholders will act by written consent to, among other
things, change the name of SWWT, increase the authorized capital stock of SWWT,
make certain other modifications to the certificate of incorporation and by-laws
of SWWT, and make changes to the composition of the board of directors of SWWT.

Consummation of the transactions contemplated by the merger agreement is subject
to customary conditions.

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Statements in this press release, other than statements of historical
information, are forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that forward-looking statements are inherently
uncertain. Actual performance and results may differ materially from the
projected or suggested herein due to certain risks and uncertainties including,
without limitation, the risks associated with the ability to consummate the
transactions set forth above, management of growth, and competition, as well as
operating risks. Those and other risks are described in SWWT's filings with the
Securities and Exchange Commission (the "SEC") made over the last 12 months,
copies of which are available from the SEC or may be obtained upon request from
SWWT.