eSoft Unveils Business Blueprint for Future; Strategy Leverages Company's Internet and Software Engineering Strengths

Business Wire, April 6, 1999

BOULDER, Colo.--(BUSINESS WIRE)--April 6, 1999--eSoft Inc. (Nasdaq Small Caps:ESFT), the company that develops an Internet presence for small businesses through the TEAM Internet(R) family of Internet access products, today unveiled a blueprint for its future business activities designed to leverage the company's historical Internet and software engineering strengths.

This strategy emphasizes three primary areas of focus -- Internet Access Products, Software Engineering Services and Internet Services.

The Internet Access Products effort will build on the company's core business of developing, marketing and selling the company's market-leading TEAM Internet product line of Internet access products. The Software Engineering Services activities will concentrate on the growing domestic and international demand for Linux-based software, leveraging the professional Linux engineering and development competencies and skills the company is acquiring through Apexx Technology Inc. Internet Services will focus on creating value by aggregating resellers and customers into a virtual community for the delivery of products and services by e-commerce and other Internet-based offerings.

"Since joining the company, I have been working to assemble a management team with the insight and experience required to take this company forward," said Jeff Finn, president and CEO of eSoft. "Over the past few months, we have made several key additions to the management team that now provide us the opportunity to quickly move forward to execute this plan. We are excited about this blueprint as it builds on the momentum we are seeing in our core business and positions the company for continued growth and expansion.

Finn continued, "It leverages the existing Internet and Linux software strengths of eSoft and Apexx Technology, while addressing the demands and requirements we are seeing in the marketplace. Using e-commerce and the online community to strengthen our traditional reseller and distribution channel will enable us to develop a larger marketplace more rapidly and efficiently. In addition, this strategy provides exciting, leading-edge projects that we have found to be key to attracting and retaining highly-skilled technical talent."

About eSoft Inc.

eSoft Inc. was founded in 1984 with headquarters in Boulder, Colo. The company recently announced a merger with Apexx Technology of Boise, Idaho. It adopted Apexx's TEAM Internet branding for its line of Internet connectivity products. The TEAM Internet family of products includes Models 100 and 2500. Each unit integrates all of the hardware and software needed to connect a business to the Internet and provides features and functions such as e-mail, Web browsing, a Web server, a domain name server, a firewall and remote access. Contact eSoft at 5335 Sterling Drive, Boulder, Colo., 80301, USA; 303/444-1600 phone; 303/444-1640 fax; www.esoft.com.

Note to Editors: TEAM Internet is a registered trademark of Apexx Technology Inc.

Statements made in this Press Release that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 ("The ACT") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believes," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. The Company intends that such forward-looking statements be subject to the safe harbors for such statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond the control of the Company that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. These factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital, unexpected costs, and failure to gain product approval in foreign countries and failure to capitalize upon access to new markets. Additional risks and uncertainties which may affect forward-looking statements about the Company's TEAM Internet business and prospects include the possibility that a competitor will develop a more comprehensive or less expensive TEAM Internet solution, delays in market awareness of eSoft and its products, possible delays in eSoft's marketing strategy, which could have an immediate and material adverse effect by placing eSoft behind its competitors. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events These factors and others are discussed in the "Management's Discussion and Analysis" section of the Company's Reports on Form 10-KSB for the fiscal year ended December 31, 1998 to which reference should be made.