eSoft Expands North American Distribution Through Affinity Marketing Deal; New Partner to Sell and Distribute IPAD in Canada.

BOULDER, Colo.--(BUSINESS WIRE)--Jan. 21, 1999--eSoft Inc. (NASDAQ Small Caps: ESFT), the company that develops an Internet presence for small businesses through the Internet Protocol Adapter (IPAD) family of Internet communication products, today announced it has partnered with Affinity Marketing Canada, a firm that markets and sells high-tech products to Canadian resellers and distributors.

"Working with Affinity will allow eSoft to understand and meet the needs of the Canadian customer better," said Jeff Finn, president and CEO of eSoft. "In addition, we feel confident that with Affinity's marketing savvy and its superior training programs, eSoft's IPAD product line will gain significant mindshare in the exploding Internet connectivity market."

"Our resellers have been clamoring for an easy, cost-effective Internet connectivity solution," said Richard Holland, national account manager for Affinity Marketing. "We strongly believe in the quality of eSoft's products and in our ability to resell them throughout the Canadian market."

About Affinity Marketing Canada

Founded in 1994, Affinity Marketing Canada provides Canadian representation to U.S. manufacturers that offer unique high tech product lines to the microcomputer market. With headquarters near Toronto, a sales office in Vancouver and regional account managers in other major Canadian cities, Affinity provides a full-service marketing and sales reach across Canada. The company represents the products of Avsys, Compex, CyberPower, Globalink, Microtek Labs and Optical Access International.

About eSoft Inc.

eSoft Inc. was founded in 1984 with headquarters in Boulder, Colo. eSoft's IPAD (Internet Protocol Adapter) is the first complete Internet connectivity product on the market. It defines a new product category -- the all-in-one Internet box. The IPAD family of products includes Models 1200, 2500 and 5000. Each IPAD 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. The IPAD 1200 integrated firewall is certified by the International Computer Security Association and is the same firewall incorporated into the IPAD 5000. Contact eSoft at 5335 Sterling Drive, Boulder, Colo., 80301, USA; 303-444-1600 phone; 303-444-1640 fax; www.esoft.com or [e-mail].

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 IPAD business and prospects include the possibility that a competitor will develop a more comprehensive or less expensive IPAD 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 December 31, 1997 and Form 10-QSB for the quarter ended September 30, 1998, to which reference should be made.