eSoft Expands Into Worldwide Markets With Ingram Micro Distribution Deal; eSoft Teams with Largest Wholesale Distributor of Computer Products.

BOULDER, Colo.--(BUSINESS WIRE)--Feb. 10, 1999--eSoft Inc. (Nasdaq Small Caps:ESFT), the company that develops an Internet presence for small businesses through the TEAM Internet family of Internet communication products, today announced the signing of a distribution agreement with Ingram Micro Inc. (NYSE:IM), the world's leading wholesale distributor of technology products.

Under the terms of the agreement, Ingram Micro will market and distribute eSoft's full line of Internet appliance products to resellers worldwide.

Ingram Micro will offer eSoft's complete suite of Internet communications products including TEAM Internet models 100 and 2500. Each model combines all of the hardware and software needed to connect businesses to the Internet, providing features such as e-mail, Web browsing, Web server, domain name server and remote access.

eSoft recently announced the finalization of its merger with Apexx Technology Inc. eSoft's IPAD product line has been absorbed into Apexx's TEAM Internet brand.

"The partnership with Ingram Micro will allow us to expand our product reach and delivery of the TEAM Internet family of products on a global basis," said Jeff Finn, president and CEO of eSoft. "Simple Internet connectivity is a pressing need for small businesses around the world and partnering with Ingram Micro is a huge step in raising awareness and sell-through of our product line."

"The distribution agreement reflects a growing trend toward outfitting small business with Internet connectivity," said Vikki Fulkoski, senior director of purchasing at Ingram Micro. "The TEAM Internet product line will allow our customers to sell an integrated Internet appliance that enables small to medium companies to control their Internet presence."

About Ingram Micro Inc.

Ingram Micro Inc. (NYSE:IM), headquartered in Santa Ana, Calif., is the world's largest wholesale distributor of technology products and services, and a leading provider of assembly and integration services with sales of $20.9 billion for the past four reported quarters.

The company and its affiliates operate in 31 countries and distribute more than 190,000 products to more than 115,000 resellers in 120 countries.

About eSoft Inc.

eSoft Inc. was founded in 1984 with headquarters in Boulder. 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, Web server, domain name server and remote access.

Contact eSoft at 5335 Sterling Drive, Boulder, CO 80301, USA; 303/444-1600 phone; 303/444-1640 fax; www.esoft.com.

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 1993 ("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 Dec. 31, 1997 and Form 10-QSB for the quarter ended Sept. 30, 1998, to which reference should be made.