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STTC News SoftNet Signs Definitive Agreement to Acquire InsPara Networking Technologies - STTC Divests Itself of WholesaleByUs

This acquisition instantly increases SoftNet Revenues by more than 500%. The combined operations of Indigo and InsPara will immediately bring annual revenue to approximately $6,000,000 and immediately bring SoftNet to a cash flow positive position. Inspara is being acquired for 40 million shares. However, SoftNet was able to retire 17.5 million shares from the divestment of WholesaleByUs and using those shares for the acquisition of Inspara. This combined transaction allowed SoftNet to bring in a highly profitable company that is generating 500% more revenue than WBU was generating for only about 22.5 million new shares.

InsPara, incorporated in 2002, has more than doubled their revenues every year. They are on track to triple this year with guidance provided at approximately $4.5 million, up from $1.2 million last year. A few of their current clients are T-Mobil, Eclipsis Corporation, DTCC, Network Appliance, and Tiffany Co.

With locations in New Jersey, New York, and New Mexico, InsPara Networking Technologies, Inc. is a Professional Services company focused on providing high-end consulting to enterprise and service provider customers that want to maximize the business value of their IT infrastructure investment. InsPara has a strong focus in providing technology infrastructure services with specific capabilities in Information Security, Network Economics, Internetworking, Network Management, IP Telephony, Storage, Application Performance and Data Center Migration/Consolidation.

"I am very excited about the value that InsPara adds to SoftNet. They bring an impressive list of clients, stellar revenue growth, a high level of profitability and a solid management team, along with Fortune 500 caliber services. The combination of Indigo and Inspara merging together will bring SoftNet into the future with strong revenue growth with quickly increasing profits," said Mr. James M. Farinella, CEO/President of SoftNet Technology. "This acquisition is representative of our strategy to focus in the IT consulting arena."

Additionally, SoftNet Technology has divested itself of WholesaleByUs (WBU). Ownership of WBU will revert back to the original principals. The basic details of the transaction are as follows: WBU was acquired for 20 million shares of STTC. 17.5 million of these shares have been retired and are being used for the acquisition of Inspara.

Explains James Farinella, SoftNet Technology CEO, "WholeSaleByUs has a compelling business model and decent revenue growth. However, their profit margins are not in-line with our strategic focus. Our service-driven and consulting concerns provide greater bottom-line efficiencies and more future potential. This divestiture will allow STTC to focus its time and resources on those operations which provide the most fundamental strength and more completely maximize shareholder value."

Please visit our website at www.softnettechnology.com for more information or for Investor Relations, please contact Stephanie Soleas, Blue-Sky Solutions at (877) 4-BLUE-IR or sttc@blueskyir.com. You may also call the company directly at 866-898-4842 (local - 908-204-9911) James M. Farinella, CEO.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by SoftNet Technology Corp (STTC) may differ materially from these statements due to a number of factors. STTC assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.