Inforum Communications to Focus Efforts on Dynamic Internet Security Marketplace

Inforum Communications to Focus Efforts on Dynamic Internet Security Marketplace

Company has Engaged Advisor to Assist in Sale of ISP Assets to Generate Growth Capital for Internet Security Subsidiary

DENVER--(BUSINESS WIRE)--Nov. 21, 2000--Inforum Communications (OTCBB:IFMC): In an effort to maximize shareholder value and capitalize on the growth and profit potential of the Internet security software business, Inforum Communications, Inc. (OTCBB:IFMC)(www.inforum.com), today announces a shift in business strategy that will allow the Company to focus solely on the continued development of its Internet security software subsidiary, 2Cactus Development, Inc.

In order to generate growth capital for Inforum's wholly owned security software business, the Company has engaged an advisor to assist in the sale of its Internet Service Provider (ISP) assets. Inforum also plans to sell off certain other non-strategic assets. The expected proceeds from these sales will be used to fund the ongoing capital requirements of 2Cactus Development, Inc. The Company has obtained a standby commitment that would provide working capital necessary to meet the Company's requirements for four to six months during this transition period, should it become necessary.

In recent months, the Internet security software business has seen a radical increase in consumer and enterprise awareness and has been the beneficiary of significant venture and private equity investment. Jeffery Mathias, President & CEO of Inforum, said: "We cannot overlook the way the market has turned Internet access and hosting businesses into commodities. Market capitalizations and valuations throughout the ISP industry reflect that change. It makes sense to complete Inforum's evolution by channeling our resources into an area where our shareholders have an opportunity to achieve the type of returns that can be realized in the high-margin, rapidly growing Internet security software space."

2Cactus Development, Inc., Inforum's wholly owned security subsidiary, recently relocated from Phoenix, Ariz., to Denver, Colo., is developing revolutionary software that protects individual servers in a networked environment. This "host"-based approach builds customer confidence by providing a secure environment, at the server level, for online businesses. The company is leading the way into an emerging component of the Internet security marketplace known as Intrusion Prevention. Preliminary assessments of technologies that will be released in the upcoming version of the proof-of-concept product, SecureBSD, designed to work with the open-source FreeBSD operating system, indicate that they have a 99% success rate for preventing both internal and external attacks.

2Cactus Development has two separate patents pending on its technology, with a third application to follow shortly, and is moving to adapt its concepts and products to commercial operating systems. The Company anticipates that a commercial version of the software, designed for Sun Microsystem's SOLARIS operating system, should be fully functional and tested by the end of the year. Development is also underway, in collaboration with key original equipment manufacturers and resellers, for products that work with other types of UNIX-based operating systems.

"Using our intuitive graphical user interface, customers will be able to quickly and easily build a scalable security posture for each respective server in their network that provides real-time Intrusion Prevention technology and an extremely sophisticated logging sub-system," said Brian Matthews, Chief Technology Officer of the 2Cactus subsidiary. "Our logging sub-system, which includes a series of unique traceback features, enables security professionals to identify key facets of specific attacks and creates a forensic trail by providing detailed information about more than 100 security related events," continued Matthews.

Facts About the Security Marketplace

According to a recent study by SalomonSmithBarney, the Internet Security market is forecast to grow to $15.8B in 2004, up from $4.9B in 1999. Moreover, the security community is beginning to understand that a layered security approach, with critical "host"-based components protecting network servers, is essential to an overall solution. According to the September 2000 edition of Information Security magazine: "Vendors and users are beginning to realize that firewalls and intrusion detection systems are not an adequate defense solution. Systems within the network borders need to be hardened against attack, as well." This is precisely the segment of the marketplace that the 2Cactus product suite addresses.

About Inforum Communications, Inc.

Headquartered in Denver, Inforum currently owns and operates a network of Internet and related service providers in the western U.S. With the divestiture of these assets and certain non-strategic assets, Inforum and its wholly owned subsidiary, 2Cactus Development, Inc., plan to capitalize on the growing Internet Security marketplace. Through its proof-of-concept products and soon-to-be-released commercial versions, Inforum/2Cactus seeks to be a leader in the emerging Intrusion Prevention segment of the Internet security business. Additional information on Inforum may be found at: www.inforum.com or www.2cactus.com.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These risks include, among other things, risks inherent in the Company's growth strategy, market demand for the Company's services and other factors affecting the Company's prospects as described in the Company's prospectus in its Form SB-2 registration statement. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.