Network Engines to Unveil Latest Security Appliances at Microsoft Worldwide Conference; NS-6000 and NS-8000 solutions, powered by Microsoft Internet Security and Acceleration -ISA- Server 2004, beta program unveiled

Business Wire, July 7, 2004

CANTON, Mass. -- Network Engines, Inc. (Nasdaq:NENG), a leading developer, manufacturer and distributor of storage and security solutions, today announced the latest in its line of security appliances powered by Microsoft Internet Security and Acceleration (ISA) Server 2004. ISA Server 2004 is an advanced application layer firewall, VPN and Web cache solution, available today, that enables customers to easily maximize existing IT investments by improving network security and performance. A beta program is now open and applicants are being accepted to test the newest appliances in the Network Engines security family, the NS-6000 and NS-8000. Beta NS appliance units are scheduled to become available later this month.

The NS-6000 appliance powered by ISA Server 2004, which is optimized for Firewall/VPN solutions, provides secure access for the small-to-medium enterprise (SME) and small-to-medium business (SMB) market including centralized management tools, remote updating capabilities, configuration templates and application filters in a simplified, single architecture.

The NS-8000 appliance powered by ISA Server 2004, which is optimized for Web Caching solutions, provides the SME/SMB with a high performance web cache to accelerate web access, reduce Internet bandwidth and manage employee Internet usage.

"The value of delivering Microsoft's ISA Server software on an appliance is clear," said Dr. Thomas Shinder, Microsoft systems security and ISA firewall authority. "Network Engines' ISA Server-based appliances help ensure ease of configuration and maintenance, while delivering enhanced network performance in a turnkey solution that was previously unavailable."

"By offering Microsoft's ISA Server 2004 in the appliance format, we can offer the advanced protection, ease-of-use and fast, secure access benefits of the ISA Server 2004 solution as a critical piece of networking gear. The power and value of the appliance makes deploying a security and acceleration solution attractive and accessible to all companies," said Mike Riley, vice president of sales marketing and strategy at Network Engines. "With the launch of the beta program, we look forward to further enhancing our NS Appliance solutions and delivering significant value to our channel partners and their customers."

The NS-6000 and NS-8000 appliances will be demonstrated at the Microsoft Worldwide Partner Conference in the Network Engines booth #727, to be held in Toronto on July 11-13. For additional beta program information, please visit www.networkengines.com/isabeta or call the Appliance Sales Hotline 1-877-638-9323.

About Network Engines

Network Engines (NASDAQ: NENG) is a leading developer, manufacturer and distributor for storage and security solutions. The company works with its software partners to develop, manufacture, and distribute server appliances for mission-critical storage and security networking applications. Headquartered in Canton, Massachusetts, Network Engines was founded in 1997. For additional information on the Company's products and services, visit www.networkengines.com

Safe Harbor and Forward Looking Statements

Statements in this press release regarding Network Engines' future financial performance and any other statements about Network Engines' management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 10-K for the year ended September 30, 2003 and most recent Form 10-Q for the quarter ended March 31, 2004 under the section "Factors that May Affect Future Operating 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.

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