China's Fujian Province Public Network Selects N.E.T. Multiservice Network for Major Expansion.

FREMONT, Calif.--(BUSINESS WIRE)--June 17, 1998--N.E.T. (NYSE:NWK) today announced a major network expansion based on N.E.T.(TM) multiservice systems for the public network serving the Fujian Post and Telecommunications Administrations (PTAs) in China. The expanded digital data network (DDNs) provides managed network services to subscribers in more than 13 cities throughout the Fujian province. The multi-million dollar N.E.T. multiservice network expansion contract was awarded to Datacraft China, a strategic N.E.T. distribution partner, in the first calendar quarter of 1998.

The Fujian network offers public digital leased line and frame relay service to more than 13 cities within the Fujian province. Banks, financial institutions, businesses and government organizations are served by the network. The network is now being expanded to more than 425 multiservice nodes, with completion expected within three months, to further improve advanced data services to subscribers throughout the province. The initial phase of the network was established in 1995 with some 100-plus nodes.

"We are very pleased with the progress of the multiservice network project, which attests to Datacraft's exceptional skills, expertise and local support," said Mr. Yu Jiliu, director, Data Communications Bureau, Fujian Province PTA. "Complemented by N.E.T.'s well-proven multiservice technology, the expanded network will further improve network coverage benefiting the government, finance and business community."

"The Fujian network expansion represents the single largest DDN contract won by Datacraft China and we are very pleased to have been selected," said Des Althorp, chairman and chief executive officer, Datacraft Asia. "Meeting customers' demands and expectations is the key to Datacraft's success."

The N.E.T. multiservice networks provide intelligent networking for high efficiency, and the ability to integrate N.E.T. PrimeVoice(TM) voice compression and ISDN capabilities and N.E.T. FrameXpress(TM) frame relay data switching. The systems also feature internal network terminating units which provide dual-loop capability that enables the provisioning of high resilience network services to individual business subscribers.

Datacraft China is a highly successful subsidiary of Datacraft Asia, the region's leading communications and networking systems integrator. In addition to offering extensive support and sales service covering Beijing, Guangzhou, Shanghai, Fuzhou, Xian and Chengdu, Datacraft China is known for its excellent technical knowledge and after-sales service. Datacraft China is a market leader in digital data networks having secured more than 35 major contracts to build communications networks for Chinese provinces and cities.

N.E.T. is a leading worldwide supplier of multiservice wide area networks used by enterprises, government organizations and carriers in more than 75 countries. N.E.T. multiservice WANs and ATM products integrate voice, data, and video traffic with ATM, frame relay, LAN internetworking and ISDN capabilities for today's mission-critical applications. The company is certified to the worldwide ISO 9001 standard for design, manufacturing and service. N.E.T. recently moved its headquarters locally in Silicon Valley from Redwood City to new facilities in Fremont, Calif. Join us at our worldwide web site: http://www.net.com for further information.

Note to Editors: N.E.T., PrimeVoice and FrameXpress are trademarks, and the N.E.T. logo is a registered trademark of Network Equipment Technologies, Inc.

CONTACT: N.E.T.

Jo Minola, 510/574-2342