IBM Partners With Citadel to Provide Washington Mutual Bank With an Enterprise License for Network and Desktop Security.

DALLAS--(BUSINESS WIRE)--Jan. 28, 1999--Citadel Technology, Inc. (OTCBB: CITN), a leading provider of desktop and network security software, today announced that Washington Mutual Inc., (NYSE: WAM), the 6th largest bank in the US, is deploying a WinShield and NetOFF suite to secure their networks and their desktops.

IBM Global Services, Inc. (NYSE: IBM) selected Citadel Technology as the partner to insure computer security for Washington Mutual Inc. Citadel issued an enterprise site license to Washington Mutual, for the WinShield and NetOFF security suite, with an initial order in excess of one million dollars. Citadel's security solution was chosen over a number of competitive products evaluated by IBM Global Services because it combined features and services designed to meet all of the customer's needs.

The combination of NetOFF and WinShield provides Washington Mutual Inc. with the ability to lock down the desktop configuration settings, secure unattended workstations, control access to applications and directories, prevent the use of unauthorized CDs, and prevent the unauthorized renaming and deleting of folders and files.

Tim Ripley, Deputy Delivery Project Executive of IBM Global Services said, "With this Citadel Technology/IBM Global Services partnership, together we will be able to provide creative and innovative security solutions for IBM customers. Citadel's responsiveness and timely completion of their product development allowed IBM engineers to focus on other aspects of client requirements. This partnership resulted in an excellent application for IBM's customer and a strong relationship between IBM Global Services and Citadel technology.

Steve Solomon, President and CEO said, "We are pleased to work with IBM Global Services as a partner helping Washington Mutual, the nations 6th largest bank with over 2000 branches to achieve their security requirements and be part of their Y2K compliance platform. We look forward to working with Washington Mutual and IBM Global Services on this project, as well as, expanding our business relationship with both companies in the future. This relationship with IBM and Washington Mutual reinforces our mission not only to be the provider of leading edge security solutions but to continue to strive to provide the quality solutions necessary in today's marketplace to support and manage our customers. " Solomon continued, "The WinShield and NetOff suite secures the Windows95 desktop and is essential in any large corporate environment that wants to maintain network desktop security, achieve Y2K compliance and reduce bottom line expenses through uniformity."

The Companies:

--Washington Mutual, Inc.-- currently operates more the 2,000 consumer banking, mortgage lending, commercial banking and consumer finance locations throughout the nation including: Great Western Bank, American Home Savings, and Ahmanson & Company.

--IBM Global Services--is the worlds largest information technology services provider. They employee 120,000 professionals that help companies of all sizes solve real business problems and create new business opportunities.

--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 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 products, 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: timing and delays related to distribution of an information statement based on the integration of technology, transition of selling and distribution methods, 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.