SoftNet's Intellicom Expands Global Reach With Six New Distribution Alliances.

Business Editors/High-Tech Writers

LIVERMORE, Calif.--(BUSINESS WIRE)--Aug. 11, 2000

Leading provider of end-to-end satellite-based Internet solutions

reinforces global presence with distribution partners in South

America, the Caribbean, New Mexico, Illinois, and Virginia

SoftNet's (Nasdaq:SOFN) Intellicom, Inc., a leading provider of two-way satellite-based Internet services for Internet service providers (ISPs), schools, and corporations, today announced strategic alliances with six new distribution partners -- Fujitsu ICL, International Services for Technological Enhanced Companies (ISETEC S.A.), Network Technologies Group (NTG), Sat-a-Link, Cibola Internet Services, and Ceva (Central Virginia Services, Inc.). Today's announcement brings the total number of Intellicom's worldwide distribution partners to seven, significantly expanding the company's global reach and influence in South America and the Caribbean as well as the midwestern and southwestern United States. Intellicom announced an alliance with TRICOM, a leading provider of integrated communications services in the Dominican Republic, in March 2000.

"Intellicom's target customers are ISPs, educational organizations and corporations worldwide who require Internet or private data communications services that are independent of location or terrestrial limitations. Each of our distribution partners is well positioned to reach the markets best served by Intellicom's technology," said Carol Sorrick, president of Intellicom. "Intellicom provides a total solution for companies that want to deliver Internet access anywhere in the world. By building a strong distribution network designed to reach the geographic regions where terrestrial Internet access is either non-existent, too expensive, or simply unacceptably slow and unreliable, we are setting a new standard for deployment of Internet services to unconnected geographic areas."

Through its distribution partners worldwide, Intellicom delivers high-speed connectivity to the Internet as well as a complete range of Internet and private data communication services enabling communities in remote locations to enjoy the benefits of reliable and secure communications without the cost and time typically required to deploy a landline-based network. Using state-of-the-art, broadband two-way satellite technology, Intellicom provides a cost-effective turnkey system that is easily deployed and easily maintained, circumventing the high cost and long deployment times generally associated with leased high-speed local telephone lines.

Headquartered in Asuncion, Paraguay, ISETEC S.A. is one of the first organizations in Paraguay to offer data communication services. With communication centers strategically positioned in the country's key geographic points of Ciudad de Este, Coronel Oviedo, and Encarnacion, ISETEC S.A. enables Intellicom to establish a firm presence as a leading provider of communications services for South American countries.

Fujitsu ICL is a leading global supplier of IT systems and services with a dominant position across the Caribbean. New Technologies Group, headquartered in the Dutch Antilles, has been delivering knowledge transfer and information technology solutions to small and mid-size businesses since 1992. The addition of Fujitsu ICL and NTG to Intellicom's distribution network enables the company to greatly increase its presence throughout the Caribbean.

"Fujitsu is dedicated to using technology to improve the life of the Caribbean people, improve the competitiveness of regional organizations and to improve the relationship between our customers and their customers. We believe that Intellicom shares this commitment," said Mervyn Eyre, president & chief executive officer of Fujitsu ICL. "All of our technology partners in the Caribbean, including Intellicom, are leaders in their respective field and have the common characteristic of being a driving force in the global information society. We're delighted to be working in partnership with Intellicom to deliver technology solutions to the people of the Caribbean."

Intellicom is the only satellite-based Internet solutions provider that delivers a packaged end-to-end solution that includes content, connectivity, support, and monitoring. Through its Network Operations Center in Livermore and call center in Eau Claire, Wisconsin, Intellicom provides around-the-clock network maintenance monitoring and support. Intellicom offers tier-one, tier-two, and tier-three support for both ISPs and their customers. This means that an ISP that deploys the Intellicom system is free from the expense and burden of training and maintaining a customer support staff.

With the addition of Grants, New Mexico-based Cibola Internet Services as Intellicom's exclusive distributor in New Mexico, Sat-a-Link, based in St. Anne, Illinois, as the distributor for Intellicom systems in Illinois and Indiana, and Ceva, a wholly owned subsidiary of the Central Virginia Electric Cooperative, as the authorized representative of Intellicom to rural electric cooperatives throughout the United States, Intellicom has significantly expanded its market reach throughout the United States.

"Most of the communities we serve don't currently have local dial-up Internet service, so residents either do without Internet access or they pay expensive long distance charges or 800-number surcharges. Capital and staff investments have been the primary barriers for smaller companies entering the ISP market," said Jim Miedema, owner of Sat-a-Link. "Intellicom's turnkey system and managed services eliminate those barriers and enables local ISPs to easily provide communities in remote locations with affordable, reliable, and secure Internet service."

While much of the western world has well established wireline networks, there are still many regions in the United States as well as in other countries that have little or no landline infrastructure. Connections to the Internet in these areas are either non-existent, too expensive, or simply provide unacceptably slow speeds and unreliable performance. Installing the landlines necessary to meet growing demand would be time consuming and cost prohibitive for many of these remote regions. Intellicom's satellite technology can provide access regardless of terrain and independent of location. When combined with the company's comprehensive Internet services, satellite technology can bring the full potential of the Internet to anyone, anywhere in the world.

About Intellicom

Intellicom, a wholly owned subsidiary of SoftNet Systems, Inc. (Nasdaq:SOFN), combines Internet services with sophisticated two-way satellite technology to deliver a turnkey solution for ISPs and schools. Since 1995, Intellicom has provided two-way satellite Internet access using an optimizing technology. Intellicom utilizes state-of-the-art wireless technologies, broadband delivery, data-push and satellite-based Internet access caching products to provide ISPs, schools and consumers with fast access to information and efficient utilization of existing network capacity. Headquartered in Livermore, California, Intellicom operates over 400 earth stations in the United States and the Caribbean, as well as a 24-hour-a-day, seven-day-a-week Network Operations Center and Customer Support Center to provide unparalleled reliability and support for dial-up customers and ISPs. For more information, visit Intellicom's Web site at http://www.intellicom.net, or phone [phone].

This press release contains forward-looking statements concerning the company's anticipated future operating results, future revenues and earnings or adequacy of future cash flow. (These forward-looking statements include, but are not limited to, statements containing the words "expect", "believe", "will", "may", "should", "project", "estimate" and like expressions, and the negative thereof.) These statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements, including the risks attendant to a growing business in a new industry as well as those risks described in the company's Quarterly or Annual Report.