Network Engines Selected By Microsoft to Support Existing Whale Communications Customers

Business Wire, Jan 23, 2007

Existing worldwide Intelligent Application Gateways (IAG) users plus new customers will be supported by Network Engines team

CANTON, Mass. -- Network Engines, Inc. (NASDAQ: NENG), a leading provider of storage and security server appliance products and services, today announced that Microsoft[R] Corporation selected Network Engines as their partner to support and fulfill customer needs for its recently acquired Whale SSL VPN customers.

"Our expanded relationship with Network Engines ensures that our current IAG customer base will have solid support and service as well as a resource for purchasing and upgrading the IAG-based solutions," said Mike Schutz, group product manager of the security and access products group for Microsoft. "Network Engines has an established track record of providing appliance solutions and support for Microsoft applications, that when coupled with their advanced manufacturing facilities, Network Engines emerges as a strong choice to support current and future IAG customers."

"Adding this application-aware SSL VPN solution to our portfolio of security platforms is a natural extension of the appliance services we provide for Microsoft and its vibrant community of independent software developers," said Greg Shortell, President and CEO of Network Engines. "Leveraging our technical support and professional services we can provide everything IAG customers need to implement what analysts hail as a visionary SSL VPN technology."

IAG is available exclusively as an integrated hardware/software platform. Network Engines will offer the current appliance solution as the NS-4700 - a 2U rackmount system employing eGap technology to impose a physical separation between the public network and the customer's internal network. Working in combination with IAG's application optimizers that allow only known-good traffic to pass to each application, the NS-4700 platform provides the highest level of security that many financial institutions and government agencies require.

Network Engines appliance implementations of IAG are available in high-availability packages which include two or more complete server systems.

Network Engines - THE Appliance Company

Network Engines appliances are designed to ease the deployment, enhance manageability, and increase security of mission critical software applications.

Our heritage of providing technology products and services tailored to supporting the entire lifecycle of our customers' appliances has made us the appliance partner of choice for software market leaders.

Founded in 1997, Network Engines is headquartered in Canton, Massachusetts and trades on the NASDAQ exchange under the symbol "NENG." For more information about the Company's products and services visit: www.networkengines.com.

Safe Harbor for Forward-Looking Statements

Statements in this press release regarding the Company's 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, 2006 under the section "Risk Factors" 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.

Network Engines and the Network Engines logo are trademarks of Network Engines, Inc. All other trademarks are the property of their respective holders.