Network Equipment Technologies Receives Extension of GSA Schedule Contract

Market Wire, December, 2007

Network Equipment Technologies, Inc. (NYSE: NWK), a global provider of multi-service network exchange solutions for enterprise and government customers, announced today that the General Services Administration (GSA) has awarded an option to extend the GSA Schedule contract held by NET's subsidiary NET Federal, Inc. The award extends the term of the contract until January 13, 2010. As part of the extension, the GSA also agreed to add product maintenance and support services onto the contract.

NET's products are used by a variety of Federal Government agencies, particularly within the Department of Defense. A substantial portion of NET's revenue from these government customers has been based on its GSA Schedule contract.

Gary L. Lau, Senior VP of NET and President and CEO of NET Federal, stated, "We are very pleased with this outcome. This extension reflects a long term and successful association between NET Federal and the GSA, and solidifies our relationship going forward. With the addition of maintenance and support services to our GSA Schedule contract, NET Federal can simplify the sales process by offering our government customers a comprehensive solution, and, as a result, deliver greater customer satisfaction."

About Network Equipment Technologies, Inc.

For nearly a quarter of a century, Network Equipment Technologies, Inc. (NET) has provided voice and data communications equipment for multi-service networks requiring high degrees of versatility, interoperability, security and performance. NET's broad family of products are purpose-built for mixed-service, multi-protocol networks; bandwidth-sensitive site communications; high performance, security-sensitive transmissions; and converged communications. The company's NX (network exchange) and VX (voice exchange) products enable interoperability and integration with existing networks for seamless migration to secure IP-based voice and data communications. In addition, Quintum, a subsidiary of NET, delivers VoIP access solutions that bring the reliability and voice clarity of public telephone networks to Internet telephony.

Visit www.net.com for more information.

Contact info: Leigh Salvo Network Equipment Technologies 510-647-8870 Email Contact