N.E.T. multiservice backbone selected by Sprint's Russian joint venture for advanced communications network in Russia.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--August 7, 1995--Network Equipment Technologies, Inc. (N.E.T.) recently won a contract valued at more than $1 million customer list to provide the Sprint group of companies in Russia, a major network service provider, with a multiservice backbone communications network to provide compressed voice and high-speed data services in Russia. The Sprint group of companies in Russia, which are owned jointly by Sprint International, Central Telegraph Company and several Russian public telecom service providers, will base the multiservice backbone network on more than 50 N.E.T.(TM) IDNX(R) multiservice bandwidth systems.

The new communications infrastructure will allow the Sprint group of companies in Russia to provide advanced service offerings such as high-speed data, ISDN services, and 8K and 16K voice compression. The Sprint group of companies in Russia has already sold service offerings based on the new network capabilities to one of the largest financial institutions in Moscow and a major international wire service.

"We have an established customer base that receives excellent service on our X.25 network in Russia. With the new N.E.T. multiservice backbone, we will be able to provide greatly enhanced service offerings on a highly efficient network," said Victor L. Ratnikov, vice president, operations, for Sprint in Russia. "In implementing this advanced network infrastructure, we looked for full-functionality, reliability and cost effectiveness. The N.E.T. backbone fully meets our requirements for today's business, and we can see a long future ahead as new capabilities continue to be added in years to come. Meanwhile, three IDNX systems have been installed and are in operation connecting Moscow and St. Petersburg via fiber, and connecting Moscow and Novosibirsk via satellite."

"Multiservice backbone technologies incorporating features such as ISDN are relatively new in Russia, and Sprint is an early leader in the market," said Ed Peverell, senior vice president of sales and marketing, N.E.T. "Our worldwide experience gave us the background we needed to help Sprint plan a network that would extend the most value to its customers, and Sprint has the in-house technical expertise to greatly facilitate the explosive communications expansion in Russia." N.E.T. has begun installation of network nodes in Moscow and St. Petersburg, where the network will be centered in the initial phase. Installation is expected to be completed over a 12-month period. The IDNX nodes will connect via fiber optic links within the metropolitan areas, and via satellite links from Moscow to outlying areas in Russia. The multiservice backbone network will include a mix of N.E.T. IDNX Model 90, Model 20-S and Micro 20 systems. The network in Russia will interconnect with Sprint's value-added end-to-end managed bandwidth service, Managed CLEARLINE(sm), which is currently available in 11 European countries with connections to the United States.

Sprint engineers have completed technical training at the N.E.T. training facility in Sterling, VA. The Sprint group of companies in Russia plans to manage and maintain the network with back-up assistance available from N.E.T. on a 24-hour-per-day/seven-day-per- week basis.

The N.E.T. IDNX family of CRMs consists of five sophisticated networking models that combine efficient multiplexing, intelligent call-routing, LAN internetworking, frame relay switching, ISDN signaling and network management. The product family also offers a migration path to asynchronous transfer mode (ATM) capabilities. The Sprint group of companies in Russia started as a joint venture in 1990 between the Russian Central Telegraph and the U.S. company Sprint International. They provide voice, video and data networking solutions to the commercial, government and financial organizations. They operate the largest and the most reliable public data network providing integrated services and access to the global SprintNet(R) network via communication centers in more than 100 cities in the territory of Russia and CIS countries.

N.E.T., headquartered in Redwood City, Calif. (NYSE:NWK), is a leading worldwide supplier of multiservice backbone networks for information-intensive enterprises and network service providers. The company has networks installed in more than 50 countries. Customers include financial, transportation, manufacturing, service, government and telecommunications organizations requiring the efficient and reliable transport of mission-critical information on a regional, national or global basis. N.E.T. meets the exacting worldwide ISO 9001 standards for design and manufacturing and is certified to the TickIT quality standard for software development. -0-

NOTE TO EDITORS: Financial Analyst Contact is Ann Candelario, N.E.T. Investor Relations, [phone].

Network Equipment Technologies, N.E.T., and the N.E.T. logo are trademarks, and IDNX is a registered trademark of Network Equipment Technologies, Inc.

SprintNet is a registered trademark of Sprint.

CONTACT: N.E.T., Redwood City

Paul Morrison, [phone]

or

Sprint, Russia

Sergei Schennikov, 7 095 201 9285