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Interactive Services Joins eStar Program; Telecommunications Integrator to Market eSoft's Comprehensive Internet Package.

BOULDER, Colo.--(BUSINESS WIRE)--Nov. 11, 1998--eSoft Inc. (NASDAQ: ESFT) a technology firm that develops and commercializes the IPAD family of communication products that simplify the way a company connects to the Internet, today announced that Interactive Services Inc. (ISI), a Hinsdale, Ill.-based telecommunications company, has joined eStar(TM).

eStar unifies an eSoft IPAD 1200 or 2500 with financing, installation, service and support into a single turnkey package. It is available to small to medium-size businesses only through telecommunications companies.

As part of the eStar package, IBM (NYSE: IBM) Global Services provides IPAD system integration, product support and maintenance, and Transamerica Distribution Finance Corp. (NYSE: TA) extends financing plans. eSoft distributor, COMSTOR, a GE (NYSE: GE) IT Distribution Business, provides the IPAD products to telecommunications companies, including ISI which provides leased lines to their business customers.

In joining the program, ISI offers its customers and prospects the eStar consolidated Internet solution. Its customers benefit from one-stop-shopping because all of the components required to connect to the Internet are available from a single provider -- the customers' telecommunications company, ISI. ISI already offers voice, data, network services, long distance and TCP/IP solutions. eStar, as a new ISI offering, generates additional revenue opportunities.

"As our newest participant in the eStar program, ISI can now offer a complete and easy Internet package to its customers," said Phil Becker, founder and CEO. "The telecommunications market has rapidly expanded to include Internet connectivity. Customers want to get their Internet access from the same place that helps them to get phone service."

"Increasingly, our customers have told us they need an Internet connectivity solution in addition to the telecommunications services we already provide," said Dan Howard, president of ISI. "esoft's IPAD was perfect for our clients because of its multi-faceted functionality and its ease of use. We feel the eStar program will give ISI a distinct competitive advantage."

About eSoft Inc.

Founded in 1984 and based in Boulder, Colo., eSoft Inc. originated and markets the IPAD (Internet Protocol Adapter) family of products. The IPAD integrates hardware and software an organization needs to connect its local area network to the Internet. It defines a new product category -- the all-in-one Internet box. Key features include firewall protection certified by the International Computer Security Association (ICSA), email, Web browsing and Web publishing capabilities. With an IPAD, eSoft is publicly traded on Nasdaq under the symbol ESFT. For additional information contact eSoft at 5335 Sterling Drive, Boulder, Colo. 80301 USA; phone (303) 444-1600; fax (303) 444-1640 or pr@esoft.com. Visit their web site at www.esoft.com.

About Interactive Services Inc.

Interactive Services Inc. (ISI) is a one-stop telecommunications services distributor with headquarters in Hinsdale, Ill. The company serves the telecommunications needs of small, medium and large businesses. ISI is a five-star Authorized Distributor of Centrex, Data and AADS products and services through Ameritech.

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, 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.
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Date:Nov 11, 1998
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