SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 19, 1998--To aid the U.S. government in its mission to become paperless by the year 2000, software.net Corporation (Nasdaq: "SWNT") today unveiled the first Electronic Software Distribution (ESD) online store focused exclusively on the software needs of government customers.

Located at http://www.software.net/gov.htm, the government-focused software store enables government departments and agencies to lower the overall cost of owning software during lean budgets, while complying with ambitious goals for a paper-free U.S. government by the next century as outlined by the White House.

"The U.S. government is taking the lead in realizing the power of the Internet," said Kendall Fargo, vice-president of enterprise and government sales at software.net. "As a leading, online software store we are committed to helping the government maximize the total procurement savings from purchasing their software online.

"Buying and downloading the industry'sbest software products over the Internet can save the government money and time without compromising its rigorous standards for security," he added.

"The U.S. government, early on, recognized the speed, security and cost savings inherent in ESD, the process of electronically purchasing and downloading software from the Internet," Fargo said. "Our online store is exactly what the government can use to exploit these advantages."

All government employees who visit software.net's government store will receive discounts on the software products they purchase. Of the more than 30,000 software titles available, more than 3,300 can be electronically downloaded. These include products from top software publishers including Microsoft, Sun Microsystems, Symantec, Adobe, Network Associates, Qualcomm, Visio and Autodesk. Software.net is committed to delivering quality software at competitive prices backed by superior customer service leveraging the power of the Internet.

About software.net Corporation

Software.net Corporation is a leading, online reseller of commercial, off-the-shelf software to the government enterprise, corporate and consumer markets. Visitors to the company's online store (http://www.software.net) enjoy a comprehensive selection of software backed by customer service and competitive pricing. Approximately 30,000 software stock-keeping units (SKUs) are available for online purchase with more than 3,300 SKUs available for immediate, electronic delivery, including software from such major publishers as Adobe, Lotus, Microsoft, Sun Microsystems and Symantec. The company has established strategic marketing alliances with America Online, Inc., Excite, Inc. and Netscape Communications Corporation. Software.net trades on the Nasdaq under the symbol "SWNT".

More information on software.net's business is included in the company's Prospectus dated June 18, 1998, which is filed with the Securities and Exchange Commission. A copy of the Prospectus may be obtained by contacting software.net directly at 408/616-4200.

    CONTACT: software.net Corporation
              Lise Olson, 408/616-4256
              liseo@software.net
              http://www.software.net