Dallas Based Private Investment Fund Acquires 2 Million Shares of Citadel Common Stock Representing Holdings of 8.7%.

DALLAS--(BUSINESS WIRE)--JUNE 5, 1998--Citadel Technology, Inc. (NASD OTCBB: CITN) today announced that Icarus Investments has purchased 2 million shares of restricted common stock in a private transaction for $2.5 million. As part of the deal, Icarus also received one year warrants to purchase an additional 500,000 shares at $4.00 and 500,000 shares at $5.00.

Icaras Investments is a Dallas based fund owned and operated by the Ruff family. The fund seeks to identify specialized companies that have developed a nich in certain sectors, especially high technology. The focus is to identify a limited number of companies with talented management teams in high growth sectors of the market, where the fund seeks to establish long term strategic investment relationships. Icarus Investments is run by Michael A. Ruff who is Chairman of the Board of Texas Central Bank .

Michael A. Ruff said, "We are pleased with our latest investment. Our new relationship with Citadel represent one of our most exciting assets. We have had a difficult time finding good values in this environment of ever increasing asset values." Ruff continued, "We believe the Citadel partnership is a unique investment opportunity. The size of our investment in Citadel indicates the level of confidence that we place in Steve Solomon and the rest of the management team. We look forward to a bright future with the company."

Steven B. Solomon, Citadel's President and Chief Executive Officer said, "This investment, by such a respected family and fund, represents a strong vote of confidence in Citadel and our future. The proceeds from this investment enhance the company's capital structure and will enable us to aggressively expand our marketing efforts in developing and distributing our award winning products. We look forward to working with Michael Ruff and the fund to achieve our long-term goals, maximizing shareholder value." Solomon continued, "Our ongoing mission is to establish Citadel as a leader in the emerging network management and security utilities software market. This investment, on the heels of the recently announced $2 million METAMOR (NASDAQ: MMWW) investment, coupled with recent product alliances with industry leaders like Microsoft and Compaq, all serve to position us to achieve our mission faster."

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

The above statements are not strictly historical facts and include forward looking statements that involve a number of risks and uncertainties. The actual results of the future events described in such forward-looking statements could differ materially as a result of, among other things, the following: integration of acquired technology and companies, transition of selling and distribution methods, consolidation of operations into the Company's Dallas offices, the availability of capital on terms acceptable to the Company, general economic conditions, competition, the market for the network software products, software development costs and possible future litigation, as well as the risks and uncertainties discussed in the Company's public reports and filings and public statements.

CONTACT: Citadel Company, Steve Solomon, CEO 

214/520-9292

or

Citadel Media and Investor Contact:

Dian Griesel, Ph.D.

The Investor Relations Group, 212/664-8489