NetWolves Reports Fiscal Third Quarter 2003 Results.

Business Editors

TAMPA, Fla.--(BUSINESS WIRE)--May 15, 2003

Incremental Revenue Growth Continues

Acquisition of Norstan Network Services Completed; Balance Sheet

Strengthened

NetWolves Corporation (NASDAQ: WOLV) announced revenues for the three months ended March 31, 2003 of $5.5 million compared to $183,500 for the same period in the prior year and $5.26 million in the fiscal second quarter of 2003. The Company reported a net loss of $470 thousand, or $0.04 per share for the fiscal third quarter compared to a net loss of $2.88 million, or $0.23 per share for the same period in the prior year and a net loss of $1.4 million, or $0.12 per share for the fiscal second quarter. Cash and cash equivalents at the end of the third quarter totaled $1.5 million, an increase of $0.86 million over the prior year end.

Commenting on this announcement, Walter M. Groteke, Chairman and CEO of NetWolves Corporation stated, "We are very encouraged by the results the recently hired sales force is achieving and the increasing rate of adoption of our managed technology services. We have made significant strides this last quarter, in spite of the global economic and geopolitical concerns that greatly affected technology spending." Mr. Groteke added, "As a result of the successful acquisition and integration of Norstan Network Services and our debt reduction initiatives, NetWolves is now directing additional resources toward increased revenue growth, and thereby facilitating the timeframe to our ultimate goal of achieving profitability."

Highlights of the Quarter

-- NetWolves pre-paid over $4.0 million of current debt more than

three months prior to its maturity date of July 2003. The

Company was able to negotiate a cash discount of approximately

$1.1 million, thereby substantially strengthening the

Company's balance sheet.

-- NetWolves closed on the private placement of its Series B

preferred stock, raising approximately $4.6 million. IndiGo

Ventures LLC and Atlas Capital Services, LLC, both financial

advisory firms, were responsible for securing these

commitments.

-- NetWolves released its WolfPac(TM) Security Platform with

Intelligent Failover, an integral part of the Company's

overall strategy of providing integrated and scalable

software-based solutions to Fortune 1000 companies looking to

adopt more cost effective public networks.

-- NetWolves completed deployment of its managed firewall and VPN 

technology with Failguard Intelligent Failover to branch

offices of GE Consumer Finance in Germany. This deployment is

part of a previously announced agreement between NetWolves and

GE Consumer Finance to also deploy this technology in Japan,

Australia, South Korea and Singapore. Interconnectivity

between GE Consumer Finance offices is expected to be one of

the largest global host-to-host virtual private networks.

-- NetWolves signed a Broadband Internet Access Agreement with

Covad Communications to become a reseller of Covad's DSL 

product line. This agreement enables NetWolves to provide

additional best-in-class Internet coverage to its customers.

-- NetWolves signed a multi-year licensing and agent agreement

with Global eXchange Services (GXS), allowing GXS to offer

remote monitoring services to its customers using NetWolves'

patent-pending SRM2 management technology. The Agreement also

authorizes GXS to offer other NetWolves products and services

as well as flexible network security utilizing NetWolves'

proprietary FoxOS technology. In addition, the Agreement

authorizes NetWolves to offer GXS products and services to its

current and future customers.

-- NetWolves announced the appointments of former Commerce

Department and Treasury Department official Carlos C. Campbell

and industry veteran Fassil Gabremariam to the Board of

Directors.

About NetWolves Corporation

NetWolves Corporation provides high-performance network security solutions coupled with robust network management and communication services. NetWolves' products offer essential applications such as firewall, virtual private networks (VPN), intrusion detection systems (IDS), content filtering, virus detection, congestion management, and intelligent failover. Additionally, the Company, through its Network Services division, provides network design, provisioning, monitoring, and management services. The marriage of these products and services positions NetWolves as a single-source solution provider for Fortune 1000 organizations looking to integrate their perimeter offices onto their global backbone network. Additionally, by replacing the multi-vendor approach with a single management, support, and billing infrastructure, companies can ensure a cost-effective and seamless integration of complex global enterprises. NetWolves is located at 4002 Eisenhower Blvd, Tampa, Florida 33634. More information on NetWolves' products can be found at http://www.netwolves.com or by calling toll free at 1-888-638-9658.

FORWARD-LOOKING STATEMENTS All statements other than statements of historical fact included herein, including without limitation statements regarding the Company's financial position, business strategy, and the plans and objectives of the Company's management for future operations, are forward looking statements. When used in this release, words such as "anticipate", "believes", "estimate", "expect", "should", "intend", "projects", "objective," and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, business and economic conditions, ability to raise additional funds, competitive factors and pricing pressures, capacity and supply constraints, and completion of current and anticipated contracts and integration of NNSI with our Company. Such statements reflect the views of the Company with respect to future events and are subject to these and other risks, uncertainties, and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.