Cobalt Qube 2700WG Wins PC Computing's 1998 MVP Award for Small Business Server Category and Innovation of the Year.

LAS VEGAS--(BUSINESS WIRE)--Nov. 16, 1998--

Cobalt Honored for Usability and Value in Small

Business Server Category

Cobalt Network's, Cobalt Qube 2700WG(TM) wins PC Computing's 1998 Most Valuable Product award in the "Small Business Category." The award was presented by PC Computing during the 10th annual MVP Awards ceremony at this year's Fall COMDEX event in Las Vegas.

"The Cobalt Qube 2700WG stands out as a great choice for small business technology buyers," said Wendy Taylor, editor PC Computing. "It offers the right combination of performance and usability that adds real value in today's competitive, productivity-oriented business environment."

After an exhausting review of thousands of computer products, the Cobalt Qube 2700WG defeated the finalists: Apexx Technology's Team Internet 300 and Whistle Communication's Interjet 200.

In addition to honoring all category winners, PC Computing singled out a select group of innovative products that provide a blueprint for how we will work in the future by recognizing these products and their companies with a special achievement award. The Cobalt Qube 2700WG received one of PC Computing's special achievement awards for Innovation of the Year.

"We're truly honored to receive this prestigious award from such a respected voice in the PC community," said Stephen DeWitt, president and CEO of Cobalt Networks. "Cobalt, develops products that not only meet the needs of small businesses, but also for workgroups and Internet Service Providers (ISPs). The Cobalt Qube, RaQ and cache products are powerful networking solutions that illustrate the convergence of the server and network appliance markets."

The Cobalt Qube has also been awarded: "Best of Show" at Summer Internet World '98, "Best New Hardware" at CMP Reseller Xchange '98, "Best New Systems Hardware Product," VARVision '98, PC Magazine's "Editor's Choice," 4-star reviews by PC Computing, June 1998 and Byte Magazine, June 1998.

About Cobalt Networks, Inc.

Cobalt Networks, Inc. is a leading developer of network communication and application solutions that set new standards for value and ease of use. Cobalt's families of products, including the award-winning Cobalt Qube(TM) and Cobalt RaQ(TM) microservers, deliver simple and scalable network server solutions for businesses, academic institutions, developers, and Internet Service Providers (ISPs). Cobalt's solutions are delivered through a global network of distributors, value added resellers (VARs) and ISPs, and can also be ordered directly from the Cobalt web site. Founded in 1996 and based in Mountain View, California, Cobalt Networks, Inc. is a privately held company with offices in the United States, Europe and Japan. Contact Cobalt by calling 650/930-2500 or by visiting the Cobalt web site at www.cobaltnet.com.