eSoft Breaks New Ground With Launch of the InstaRak(TM) Secure Server Appliance

eSoft Unveils Secure Server Appliance With The Ability to Host Web, e-mail & DNS Services for Multiple Domains

BROOMFIELD, Colo., July 23 /PRNewswire/ — eSoft Inc. (Nasdaq: ESFT), today announced the introduction of the InstaRak(TM) secure server appliance. The new product has been designed to meet the needs of service providers and their customers to provide a secure, end-to-end solution for web, DNS and mail services for multiple domains. eSoft is pioneering the delivery of secure server appliances by integrating server features with security protection making the InstaRak the most secure server on the market today.

According to International Data Corporation (IDC), the worldwide Appliance Web server market was $161.9 million in 2000 and is projected to grow to $2.2 billion by 2005. The InstaRak is well positioned for this market and will meet the markets need for a server appliance with integrated security technology.

Designed with service providers in mind, the InstaRak is a complete hardware and software solution providing customers with a highly reliable server appliance, flexible administration, superior ease of use and field-proven reliability. Key InstaRak features include:

— Multiple domain hosting

— Web services

— Email services

— DNS and FTP services

— Industrial strength security

— Distributed administration

The InstaRak also provides simple setup and usability from a standard Web browser, including automatic online software and security updates and subscription management. Through eSoft’s patent-pending SoftPak Director process, users can download SoftPaks(TM) for value-added business services. SoftPaks announced include:

— Anti-virus — virus protection

— Webmail — easily access email from any Web browser

Service providers benefit from the SoftPak business model by providing them with the ability to host additional value-added applications that generate a recurring residual revenue stream.

“eSoft is continually looking for new technologies that help our customers increase their revenues while reducing their cost of ownership and operations through ease of use and reliability,” said Jeff Finn, president and CEO of eSoft. “InstaRak is positioned to offer service providers access to a secure server appliance while addressing the known hosting requirements for Web, mail and DNS. For our customers, the combination of InstaRak and SoftPaks means quicker return on server investments and more revenue per 1U.”

To meet the industry demand for secure server appliances, eSoft has partnered with Argus Systems (http://www.argus-systems.com) to offer PitBull LX application security software for the InstaRak. The integration of Argus’s Pitbull LX, makes it virtually impossible for hackers to control the InstaRak or exploit application weaknesses. Hackers on the Web cannot access back-end administration, and no insider can export unauthorized information because applications, network connections and system resources are completely isolated. In addition, multiple customers hosted on the same appliance are protected from one another.

“eSoft is embarking upon the next wave of security technology,” said Bob Hartman, vice president of engineering for eSoft. “With InstaRak, we have combined award-winning security and application software with a next generation hardware design. This new secure appliance has technology to stop hackers and improve uptime which means less maintenance and a low total cost of ownership for our service provider partners.”

The InstaRak leverages eSoft’s next generation hardware design that was first introduced with the company’s InstaGate EX2 Internet security appliance and provides impressive MTBF, energy efficient operation and field-proven reliability. InstaRak hardware specifications include:

— 566 MHz Intel(R) processor

— 64 MB RAM

— 10.2 GB HDD

— 1U Height — 1.7 x 11.5 x 9.25 ”

(4.3 x 29 x 23 cm)

— 5lbs (2.3 kg)

“The InstaRak is an ideal solution for full service Internet service providers,” said George Peace, president of Pennsylvania Online, an Internet service provider located in Harrisburg, Pennsylvania. “Our customers’ security concerns have intensified over the past few years, and we began looking for a product that meets these requirements by providing reliable security and virtually unlimited extensibility and the InstaRak provides these features when combined with ‘SoftPaks. In addition, SoftPaks enable us to provide additional services to our customers while improving our profit margins and providing a recurring revenue stream.”

Having recently completed a successful beta trial of the product amongst key service providers, the InstaRak will be marketed directly to Internet Service Providers as well as through value-added resellers (VARs) and international distributors. Detailed specifications on the InstaRak are available at http://www.esoft.com.

About eSoft Inc.

eSoft is pioneering the delivery of business and IT-related applications through its secure Internet appliances. The company’s product line provides security features that include firewall and VPN, Internet and Web hosting services, and business-enhancing software upgrades. eSoft’s products are sold internationally through a network of value added resellers, Internet service providers and value added distributors. The company is headquartered in Broomfield, Colo. and trades on the NASDAQ exchange under the ticker symbol ESFT. Contact eSoft at 295 Interlocken Blvd, #500, Broomfield, CO, 80021, Phone 303-444-1600, Fax 303-444-1640, http://www.esoft.com or pr@esoft.com.

SoftPak Director, SoftPaks, InstaRak and InstaGate EX are trademarks of eSoft. All other brand and product names may be trademarks of the respective companies with which they are associated.

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements often can be identified by the use of terms such as “may,” “will,” “expect,” “believe,” “project,” “estimate” or words of similar meaning. Readers should not place undue reliance on these forward-looking statements, and eSoft will not necessarily update these statements to reflect subsequent developments. In addition, these forward-looking statements are subject to risks, uncertainties and important factors that may cause actual results to differ materially from those anticipated. These factors include adverse economic conditions, entry of new and stronger competitors inadequate capital, unexpected costs, failure to gain product approval in foreign countries, failure to capitalize upon access to new markets, the possibility that a competitor will develop a more comprehensive or less expensive solution and delays in the market awareness of eSoft and its products. Readers should review these factors and others, which are discussed in reports that eSoft files with the Securities and Exchange Commission.




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