eSoft Signs Telecom Industry Distribution Agreements; Boulder, Colo. Company Expands Product Availability in Canada and U.S.

BOULDER, Colo.--(BUSINESS WIRE)--Sept. 22, 1998--eSoft Inc. (NASDAQ: ESFT), the company that developed and commercializes the Internet Protocol Adapter (IPAD) family of Internet communication products, today announced distribution agreements with AT2 Communications headquartered in San Antonio, Texas and CANnect Communications of Vancouver, British Columbia.

"eSoft continues to expand into the specialized telecommunications distribution channel," said Phil Becker, founder and CEO of eSoft. "Our IPAD models give these distributors and their resellers the opportunity to offer simple Internet connectivity solutions along with traditional voice products and services. AT2 Communications adds to our growing U.S. distribution channel. CANnect brings eSoft's integrated telecommunications distribution approach to Canada."

"We see a huge need for hardware that helps small and medium-sized companies to graduate from dial-up accounts to LAN-to-Internet connectivity," said Rich Rice, president and CEO of CANnect Communications. "The IPAD is the perfect solution for our customers."

"The decision to offer the IPAD products was fueled from the ground up by the telecommunications resellers in our network who expressed an interest in business Internet connectivity devices to complement their traditional voice services," said Mike Godowns, associate vice president of technical services for AT2 Communications. "We're excited about working with eSoft." About AT2 Communications

AT2 Communications operates as a distributor of sophisticated wide area and local area networking equipment solutions. AT2 provides state-of-the-art products, services and support from leading manufacturers. AT2 maintains a Technical Assistance Center that guides its customers through pre-sales configuration, product selection and post-sales support. About CANnect Communications

CANnect Communications is a distributor and also manages the telecommunications requirements of small- and mid-sized companies, including Internet connectivity, long distance services, network management and telecommunications billing in Canada. Contact CANnect at 1-800-208-9398 or visit their Web site at www.advantagetelcom.com About eSoft Inc.

eSoft Inc. was founded in 1984 and is headquartered 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 email, Web browsing, Web server, domain name server, and remote access. The IPAD 1200 integrated firewall is certified by the International Computer Security Association. 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 federal securities laws. Forward looking statements represent management's best judgment as to what may occur in the future, but are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those presently anticipated or projected. These factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital, unexpected costs, 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. 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 June 30, 1998.