Cobalt Networks Introduces RaQ 2 Internet Server Appliance.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--March 8, 1999--

Second-Generation Rack-Mountable Server Appliance Makes It

Easy for ISPs and Businesses of All Sizes to Leverage

Dedicated Hosting Solutions

Cobalt Networks, Inc., the leader in network server appliances, today introduced the Cobalt RaQ(TM) 2, a rack-mountable, high-density Internet server appliance optimized for Internet Service Providers (ISPs) and businesses who desire flexible, easy-to-manage Internet services and Web hosting solutions at a low cost.

The RaQ 2 is based on proven, reliable technology, and -- along with the Cobalt Qube 2(TM) -- is the only second-generation server appliance on the market today.

Based on customer feedback on the popular RaQ(TM) server, Cobalt integrated several new capabilities into the RaQ 2, including security enhancements, name-based virtual hosting, Microsoft(R) FrontPage(R) Extensions, and a browser-based software upgrade option. The RaQ 2 is commerce-enabled, allowing users to easily plug in their own e-commerce solutions.

Dual Ethernet ports deliver increased flexibility by separating the Web traffic from the back-end private network. In addition, Cobalt will be offering a software upgrade so Cobalt RaQ customers can easily upgrade to RaQ 2 software.

"Businesses of all sizes are looking to ISPs to provide increased Web services at competitive prices," said Stephen DeWitt, CEO of Cobalt Networks. "Unlike the expensive 'big iron' servers, the RaQ gives ISPs the flexibility to deliver affordable dedicated and shared Web hosting solutions via an integrated server appliance."

ISP and Business Benefits

Today, more and more companies are implementing Web strategies for their businesses. This creates additional challenges for ISPs who are running out of space due to large, tangled groups of servers. ISPs are also faced with high operating system licensing, acquisition and maintenance costs, as well as with increased customer demand for faster delivery of value-added services.

The RaQ 2 solves these problems by packaging turn-key hosting solutions into a high-density server appliance that saves space and can be easily managed through a browser.

For small to medium-sized businesses, the RaQ 2 delivers essential Internet services such as e-mail and other Web and network file services in a cost-effective, easy-to-use solution.

"When the RaQ 2 unit powered up, the front-panel LCD display and keypad made initial setup a breeze. As we worked with the RaQ 2 unit further, we found that the web-based tools for system configuration and account management were quite intuitive to use and supported by a well-thought-out help system," said Michael Silbert, technology consultant, Network Development Company.

"In our opinion, the RaQ 2 is both easy to deploy and a breeze to manage a winning combination."

Dedicated, Shared and Co-Location Hosting Solutions

Name-based virtual hosting means that service providers with shared server environments can save money and receive a greater return on their investment by eliminating the need to have dedicated IP addresses for every site being hosted.

In addition, ISPs can offer a range of solutions from shared server up through high availability multi-server arrays, which they can sell or lease at very aggressive prices.

The RaQ's low price point enables businesses of all sizes to benefit from the reliability and security of having a dedicated server. And because it's based on an open-source architecture -- Linux -- businesses that want to customize their Internet services and co-locate their servers at an ISP can do so with ease.

Open, Extendable Architecture

As with all Cobalt products, the RaQ 2 runs the popular Linux operating system. The open standard design and operating system enable ISPs and resellers to easily add valuable Web server-based applications.

Additional RaQ 2 Features

The RaQ 2 offers a high-speed 250MHz processor, up to 256MB memory, and 16.8 gigabytes of disk space for increased performance, functionality and storage. Other important features include: -0-

--   Virtual hosting services, including name-based hosting
     (up to 200 virtual sites per server)
--   FrontPage Server Extensions
--   SMTP, IMAP4, POP3 email protocol support
--   FTP, anonymous FTP support
--   PAM/Shadow Passwords support
--   Mailing list support
--   CGI, Perl scripting
--   SNMP monitoring support
--   Browser-based management interface
--   Browser-based software upgrade
--   Per site performance and usage reporting
--   Optional SSL support
--   30 watts maximum power usage

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Price and Availability

The RaQ 2 will be sold through distribution partners and value-added resellers (VARs) as well as via the ISP channel. The product, which will begin shipping mid-March 1999, comes fully pre-configured and can be ordered now for as little as $999, depending on configuration options. A Japanese version of the RaQ 2 will also be available soon.

For more information, please contact Cobalt at 888/702-6225 or via the Web at www.cobaltnet.com.

About Cobalt Networks, Inc.

Cobalt Networks, Inc. is a leading developer of server appliances that extend the reach of the Internet by setting new standards for value, integration, and ease of use. Cobalt's award winning product line -- the Cobalt Qube, Cobalt Cache, Cobalt RaQ, and Cobalt NASRaQ are widely deployed as Internet and Web hosting server appliances at businesses, educational institutions and Internet Service Providers (ISPs).

Cobalt's solutions are delivered through a global network of distributors, value-added resellers and ISPs. Founded in 1996, Cobalt Networks, Inc. (http://www.cobaltnet.com) is located in the heart of Silicon Valley at Mountain View, California, USA with international offices in Japan, United Kingdom, Netherlands, and Germany.

Note to Editors: Cobalt Networks, Cobalt Qube, and RaQ are trademarks of Cobalt Networks, Inc. All other product names are trademarks of their respective owners.