Network Engines' WebEngine Family of Internet Appliances Wins Major Industrial Design Award

Business Wire, June 26, 2001

Business/Technology Editors

CANTON, Mass.--(BUSINESS WIRE)--June 26, 2001

Network Engines, Inc. (Nasdaq: NENG) today announced that Network Engines' WebEngine(TM) family of Internet server appliances has won the Bronze award for computer equipment in the 2001 Industrial Design Excellence Awards (IDEA) competition. The awards are given by the Industrial Designers Society of America and sponsored by BusinessWeek Magazine.

With a bezel design developed by Bleck Design Group and Network Engines, the WebEngine family is a pioneer in the market for extremely high density servers, measuring just 1U (1.75 inches) high. The Network Engines(TM) WebEngine family is used by Web hosting and service providers, content delivery networks and large enterprises for delivering content via large, distributed Internet clusters. The compact design of Network Engines' WebEngine family is especially important for those customers who place their servers in co-location facilities where space is often at a premium and can be extremely expensive.

"We're thrilled to receive the IDEA award. The collaboration of the teams from Bleck Design Group and Network Engines yielded a really unique-looking, highly functional server appliance, the WebEngine," said John Curtis, president and CEO of Network Engines, Inc. "Today, our WebEngine family is the most advanced 1U server appliance on the market, and we have continued to raised the bar in the high-density computing arena with the release of its newest member, the WebEngine Sierra."

"The WebEngine family's distinctive appearance provides the client with a visual foundation upon which to build a corporate image. Users are given an immediate visual sign of the products significant functional differences from general-purpose servers". Said Jim Bleck, President of Bleck Design Group.

Network Engines' WebEngine family offers the industry's most advanced thermal cooling system, a system more reliable than other server appliances because it incorporates a cable-less airflow system along with six hot-swappable fans to prevent overheating. Because up to 42 dual Intel(R) Pentium III(R) 1GHz servers can be stacked in a standard equipment rack, heat dissipation is critical.

About Network Engines

Network Engines (Nasdaq: NENG) provides high-density, scalable Internet server appliances that support large Web-based applications for Web hosting and service providers, content infrastructure providers, application service providers and larger enterprises. The company was founded in 1997 and is based in Canton, Massachusetts. For more information, visit the company's Web site at www.networkengines.com.

About Bleck Design Group

Bleck Design Group is a full-service industrial design and engineering consulting firm providing concept to production design services. All projects involve strategy, conceptual design, mechanical engineering and management through production. We specialize in designing complex products and differentiating superior technology. Our projects include business equipment, telecommunications, network appliances, medical and consumer products. For more information, call 978.251.7474 x255, or visit our website at www.bleckdesigngroup.com

Except for the historical information contained herein, we wish to caution you that certain matters discussed in this news release constitute forward- looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including those factors contained in the Company's most recent Annual Report on Form 10K for the period ending September 30, 2000, under the section "Management's Discussion and Analysis of Financial Conditions and Results of Operations - Factors That May Affect Future Results" as well as other documents that may be filed by the company from time to time with the Securities and Exchange Commission. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward- looking words such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "should", "will", and "would" or similar words. The Company assumes no obligations to update the information included in this press release.