CORESTAFF and Citadel Technology Complete Agreement in Which CORESTAFF Acquires 2.5 Million Citadel Shares

Business Wire, Oct 6, 1997

DALLAS--(BUSINESS WIRE)--Oct. 6, 1997--

Includes R&D Expansion, Exclusive Licensing, Right to Acquire Additional Stock

Citadel Technology, Inc. (OTC/BB:NOFF) and CORESTAFF, Inc. (NASDAQ:CSTF) today announced that they have completed a previously announced agreement in which CORESTAFF has purchased 2.5 million shares, or approximately 13 percent of Citadel's outstanding common stock.

As part of the agreement, CORESTAFF has an option to acquire an additional 2 million shares at prices ranging from $4 to $5 per share. In addition, CORESTAFF's Software Services Unit, Millennium and its development staff of over 100, will supplement Citadel's research and development activities and each company will cross-sell the other company's products or services. CORESTAFF also will provide core technology and development services to Citadel and a CORESTAFF representative will be appointed to a seat on Citadel's board of directors.

Steven B. Solomon, Citadel's president and chief executive officer, said that, "This new relationship with CORESTAFF means far more than just an investment of capital. CORESTAFF's customers represent a large opportunity for Citadel's products and Citadel is also becoming an exclusive distributor of CORESTAFF's software product 'First Step,' a single sign-on system that enables users to enter a single user identification and password to gain access to disparate networks and services. 'First Step' will be further developed and integrated with Citadel's technology to create a secure desktop environment for networks and Internet/intranet users.

"Furthermore, this new relationship is enabling us to expand Citadel's research and development activities, without the loss of our existing development staff. This should significantly reduce the lead time for getting new product introductions and product upgrades to market, while also further increasing overall software quality, decreasing our product development costs, and allowing us to further focus our internal development efforts.

"This is an extraordinarily exciting step in Citadel's continuing program to position itself as a leading provider of network and desktop utilities and to align the company with leading players in the industry."

Established in 1993, CORESTAFF, Inc. is one of the largest national providers of information technology (IT) services and staffing services through its two business groups: the IT Services Group, which is comprised of COMSYS Information Technology Services and the IT Solutions unit, and the Staffing Services Group, which operates under the name CORESTAFF Services. CORESTAFF operates 148 branches in 28 states, the District of Columbia, the United Kingdom and India.

Incorporated in 1992, Citadel Technology, which changed its name from Citadel Computer Systems, Inc. on June 1, develops and markets computer software products to secure, manage and automate desktop and network environments. Citadel Technology products include C:/More!, TabWorks, NetOFF, WinShield, Phantom of the Console, ServerSentry, ServerCam, and FolderBolt. Citadel can be reached at 3811 Turtle Creek Boulevard, Suite 600, Dallas, Texas 75219; phone 214/520-9292; fax 214/520-9293, or visit the company on the World Wide Web at http://www.citadel.com.

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. All statements other than statements of historical facts included in this news release, including without limitation, statements relating to the CORESTAFF transaction and future product development and sales, as well as the success of new selling strategies, are forward-looking statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.

Important factors that could cause actual results to differ materially from the company's expectations include the possibility that CORESTAFF will not be satisfied with its due diligence review of Citadel or satisfactory agreements will not be reached. The market for PC and networked software products, competition, the effectiveness of new selling strategies, and other factors set forth in the company's filing with the Securities and Exchange Commission. -0-

Note to Editors: Citadel Technology, C:/More!, TabWorks, NetOFF, and WinShield are trademarks of Citadel Technology, Inc. CORESTAFF's First Step Windows and Windows NT are registered trademarks of Microsoft Corporation. All other products and company names are trademarks of trade names of their respective holders.

CONTACT: Citadel

Steven B. Solomon, 214/520-9292