BROOMFIELD, Colo., Feb. 23 /PRNewswire/ -- eSoft Inc. (Nasdaq: ESFT), the
company that develops and markets the TEAM Internet(R) Linux(TM) software
suite, today announced that Gateway has committed to make a $25 million
investment in the company. eSoft also announced a redphish software licensing
and services agreement in which Gateway will provide turnkey Internet access
solutions to small businesses.
Gateway will purchase $25 million of newly issued common stock, and will
receive warrants to purchase an additional 600,000 shares of eSoft common
stock. Gateway will leverage eSoft's network Internet service solutions to
advance its commitment to small business' growing software and Internet
connectivity needs.
As part of the strategic alliance, Gateway will work with the company to
develop joint solutions to enable customers to leverage Internet applications
for their business. Gateway will provide their small and medium business
clients an on-line presence and secure networked operations with a host of
infrastructure applications and Internet management systems, including
firewall protection, web hosting, virtual private networks and network
management services. They will also work with eSoft to provide the platform
for web-hosted Application Services, offering business software solutions for
horizontal applications such as finance and human resources and vertical
applications for the healthcare and automotive industries.
In addition, Gateway will combine eSoft's application and management
software with its server appliances and Internet access for scalable local
area networking and Internet solutions that grow with a business' changing
needs. Gateway will sell and support these branded services to customers on a
subscription basis. The two companies will also work together to develop
additional functionality and expand offerings for vertical and horizontal
business applications.
"Gateway is committed to providing customer-focused solutions that
positively impact how small and medium businesses work," said Van Andews,
senior vice president, Gateway Business. "Our relationship with eSoft will
enable us to offer these solutions at a great value to our customers."
"Gateway's investment and licensing agreement supports eSoft's redphish
program," said Jeff Finn, president and CEO, eSoft, Inc. "Our redphish
value-added service provider program delivers subscription based managed
Internet software and service solutions that enhance the life-of-customer
relationship. The goal of our relationship with Gateway is to deliver as many
Internet connectivity software and solution bundles as possible, to as many
customers as possible, and then expand the array of value-added services we
can jointly offer to each customer."
About Gateway
Gateway (NYSE: GTW), a Fortune 250 company founded in 1985, focuses on
building lifelong relationships with consumers and businesses through complete
technology personalization. Gateway ranked number one in U.S. consumer PC
revenue in 1999(1) and was rated among the top ten best corporate reputations
in America according to a survey conducted in August of 1999 by Harris
Interactive and the Reputation Institute and published in The Wall Street
Journal. Gateway employees worldwide provide clients with services and
built-to-order computers that consistently win top awards from leading
industry publications. Gateway had total global revenue of $8.65 billion in
1999 and shipped 4.68 million systems. For more information, visit our Web
site at http://www.gateway.com
(1) According to GartnerGroup/Dataquest US PC Quarterly statistics.
About eSoft Inc.
eSoft Inc. was founded in 1984 with headquarters in Broomfield, Colo.
eSoft provides a family of Linux-based Internet appliances and services that
enable small- to medium-sized business 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 functionality. Contact eSoft at 295
Interlocken Blvd., #500, Broomfield, Colo., 80021, USA; 303-444-1600 phone;
303-444-1640 fax; http://www.esoft.com. TEAM Internet is and a registered trademark
of eSoft Inc.
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 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.
The above statements include forward-looking statements based on current
Gateway management expectations. Factors that could cause future results to
differ from these expectations include the following: general economic
conditions; growth in the personal computer industry; competitive factors and
pricing pressures; component supply shortages; risks relating to new or
acquired businesses and joint ventures; and inventory risks due to shifts in
market demand. Additional factors are described in the Company's reports
filed with the Securities and Exchange Commission.
SOURCE eSoft, Inc.
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Related links:
http://www.esoft.com
http://www.gateway.com
CONTACT:
Robyn Phipps, robyn@metzger.com, or Rich
Miller, rich@metzger.com, both of Metzger Associates,
303-786-7000, for eSoft, Inc.; or Nina Piccinini, Public
Relations of eSoft, Inc., 303-444-1600, ext. 3255 ninap@esoft.com
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