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ESOFT EXECUTES LETTER OF INTENT TO ACQUIRE TECHNOLOGIC, INC.
RELATED SYMBOLS: (ESFT)
BROOMFIELD, Colo., Jul 22, 1999 /PRNewswire via COMTEX/ -- eSoft Inc.
(Nasdaq: ESFT) and Technologic Inc. today announced the signing of a
letter of intent for eSoft to acquire Technologic, a privately held
company headquartered in Norcross, Georgia. eSoft will exchange
approximately 1.5 million shares of its common stock for all of the
shares, options and warrants of Technologic. Through this acquisition,
eSoft will leverage Technologic's strengths in advanced firewall
security applications and Virtual Private Network ("VPN") technology to
accelerate eSoft's goal of becoming a worldwide market leader in
Internet appliances. eSoft will market the Technologic products through
its more than 600 domestic and international resellers, telemarketing
channels and online.
The companies intend for the acquisition to be a tax-free exchange
accounted for as a pooling-of-interests. The completion of the
transaction is subject to several conditions, including execution of a
definitive purchase agreement and approval of the agreement by both
companies' boards of directors and Technologic shareholders. The
anticipated completion date forthe transaction is August 31.
"The acquisition of Technologic is the next step towards our goal of
acquiring companies to extend our product line and reduce time to
market," said Jeff Finn, president and CEO of eSoft. "Technologic has
clearly emerged as a leader of products and engineering expertise
which, when combined with our TEAM Internet product line, further
strengthens our ability to provide our resellers and customers with a
full range of bundled Internet access solutions, including firewall
security, VPN and e-mail server capabilities. Brian and his team have
done a great job of building their company, and weare excited about
having them join the eSoft organization."
"We are extremely pleased that eSoft recognizes Technologic's unique
value in security and VPN technology," said Brian Cohen, CEO and
co-founder of Technologic. "We are looking forward to supporting
eSoft's vision for the future of Internet appliances by contributing
our engineering knowledge to their product roadmap. eSoft's extensive
reseller channel will dramatically improve our access to small and
mid-size businesses."
Technologic's InstaGate Internet and Interceptor Firewall Appliances
are well-positioned to enhance the TEAM Internet product line from
eSoft. This acquisition will significantly advance eSoft's position as
a leading provider of Internet appliance technology and allow eSoft to
provide further value to the growing number of small businesses
exploiting the Internet.
About eSoft Inc. eSoft Inc. was founded in 1984 with headquarters in
Broomfield, Colo. eSoft provides a family of Internet appliances and
services that enable small to medium-sized businesses to harness the
full power of the Internet. The TEAM Internet family of products is
designed for businesses with up to 200 workstations and provides
low-cost, LAN-to-Internet connectivity and includes a range of
features, including e-mail, Web browsing, a Web server and remote
access. Contact eSoft at 295 Interlocken Blvd., #500, Broomfield,
Colo., 80021, USA; 303-444-1600 phone; 303-444-1640 fax; www.esoft.com.
TEAM Internet is a registered trademark of eSoft Inc.
About Technologic Founded in 1992, Technologic Inc. is a leading
developer of Internet firewall and all-in-one connectivity appliances.
The company's mission isto provide products and services that make it
affordable, easy and safe for companies to conduct business on the
Internet. Technologic's flagship products, Interceptor(TM) Firewall
Appliance and InstaGate(TM) Internet Appliances, have been certified to
meet security standards defined by the ICSA (International Computer
Security Association). For more information, visit Technologic on the
World Wide Web at www.tlogic.com or call (800) 615-9911.
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 failure to achieve a
definitive agreement with Technologic, 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 TEAM
Internet 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.
SOURCE eSoft, Inc.
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com -0-
CONTACT: AmyBeth Hansman, Investor Relations, 303-444-1600 ext.
224,
ahansman@esoft.com, or Nina Piccinini, Public
Relations, 303-444-1600
ext. 255, ninap@esoft.com, both of eSoft, Inc.; or Liz
Gainsford, Director of
Marketing of Technologic, Inc., 770-448-0334 ext. 279,
liz@tlogic.com
WEB PAGE: tlogic.com
esoft.com
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