Citadel Technology Anounces How2HQ.com's Four-for-One Stock Split and Closing of BPG Asset Acquisition.

DALLAS--(BUSINESS WIRE)--August 13, 1999--

Citadel retains 17 million shares of Internet subsidiary on a post-split basis

Citadel Technology, Inc. (OTCBB: CITN) today announced that How2HQ.com, its Internet subsidiary, has completed a four-for-one stock split effective in July 1999.

How2HQ.com's board of directors has approved a four-for-one stock split after initial valuation discussions with investment banking firms. The stock split will be effected as a 300 percent stock dividend. Shareholders of record on July 7, 1999 will be issued a certificate representing three additional shares of common stock for each share of common stock held on the record date.

Upon completion of the split, How2HQ.com will have approximately 40 million common shares outstanding, of which Citadel will retain 17 million shares, after giving effect to the previously announced spin-off dividend with a record date of March 18, 1999 discussed below.

How2HQ.com also announced that its acquisition of the multimedia production and content conversion assets from Broadcast Production Group Inc. (BPG Worldwide) was closed on August 9, 1999. Under the terms of the acquisition agreement, How2HQ.com paid BPG $500,000 in cash as well as 200,000 post-split common shares of How2HQ.com with a guaranteed value of $10.00 per share (on a post-split basis) based on the trading prices of the common stock following an initial public offering. In addition, How2HQ.com retained certain key employees of BPG.

With the BPG acquisition, How2HQ.com has five locations including Silicon Valley, Los Angeles, Seattle and two locations in the Dallas/Fort Worth area, including its 67,000 square foot fulfillment facility.

In its Form 10-KSB for the fiscal year ended February 28, 1999, Citadel announced that How2HQ.com had closed a $15.8 million private placement of its common shares through the first quarter of fiscal 2000 (ended May 31, 1999). The shares have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from applicable registration requirements.

The Company and its management, legal counsel and outside auditors continue to work to prepare and file with the Securities and Exchange Commission the documents required by the SEC to complete the previously announced spin off dividend to Citadel shareholders. The Company currently intends to distribute the dividend shares in connection with How2HQ.com's initial public offering. As previously announced, How2HQ.com recently completed three acquisitions (2-Lane Media Inc., the Forward Companies, and BPG) as to which information is required to be included in the SEC filings. While this has delayed the process, management believes that the acquisitions will greatly strengthen How2HQ.com.

Citadel Technology, Inc. is a developer and marketer of computer software products including security and management utilities for networks and personal computers. The Company's products are designed to secure and manage personal computers (PCs) and local area networks (LANs) and enable network administrators to more efficiently manage the networks. Company products are designed to reduce client costs, improve the accuracy of clients' information, maintain the operation of the network, secure the network from fraud or unauthorized use, and generally enable the administrator to devote more time to improving service to the network rather than focusing on operational details.

For more information on Citadel Technology and its products, please visit the Company's homepage at http://www.citadel.com. For information on purchasing products, contact the Company directly by writing or calling: Citadel Technology, 3811 Turtle Creek Blvd., Suite 600, Dallas, Texas 75219; phone [phone]; fax [phone]. For media or investor relations contact: The Investor Relations Group at 212.664.8489.

Forward-Looking Statements: This news release contains forward-looking statements, which involve risks and uncertainties. Accordingly, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company. These factors include the Company's and its subsidiary's success in integrating the business and operations of acquired companies; timing and delays related to distribution of an information statement based on compliance with SEC requirements; no assurances of an initial public offering based on market conditions and suitable underwriters; uncertainty relating to NASDAQ listing; implementation of Internet strategies; the activities of new or existing competitors; the ability to attract and retain employees and strategic partners; adoption of the Internet as a medium of commerce, communications and education; application of state unclaimed property or escheat laws; transition of selling and distribution methods, the availability of capital on terms acceptable to the Company; general economic conditions; the market for the network software products; software development costs and litigation costs. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.

The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.