Network Engines Launches Version 2.0 of Steel-Belted Radius Appliance; Second release provides enhanced functionality and supports two-factor authentication.

Business Editors/High-Tech Writers

CANTON, Mass.--(BUSINESS WIRE)--Sept. 24, 2003

Network Engines, Inc. (Nasdaq:NENG), a leading development, manufacturing and distribution partner for storage and security software vendors and equipment providers, today introduced Release 2.0 of the Steel-Belted Radius Enterprise Edition Appliance. Built around Funk Software's latest version-v4.5, the new appliance offers expanded functionality, including support for two-factor authentication products, including RSA Security's ACE/Server, VASCO Digipass, and others. Distribution of the Appliance will be through TidalWire, Network Engine's distribution arm.

"The first version of the Steel-Belted Radius Appliance received wide acclaim for ease of deployment for remote user authentication and wireless WLAN users," said Mike Riley, Network Engines vice president of marketing and strategy. "We expect this latest version, with increased functionality and two-factor authentication, to further extend its adoption into the security market."

Version 2.0 of the Steel-Belted Radius Appliance is a fully integrated system, pre-loaded with Funk Software's Steel-Belted Radius Enterprise Edition v4.5 and an embedded, hardened version of Windows 2000 professional operating system. Network Engines' rack-mountable hardware device provides a secure, easily deployed platform, increasing ROI to the end user.

Network Engines optimizes the appliance to run Steel-Belted Radius, using an Intel processor and custom BIOS modifications to allow rapid boot sequence. Front panel LCD displays status messages for diagnostics and trouble-shooting. Redundant operations are easily set up for highly reliable remote and WLAN access.

"For security, ease of install and maintenance requirements, there is a clear demand in the market for the Steel-Belted Radius solution pre-loaded on a hardened appliance," said Brad LaVoie, senior account manager for Proactive Network Management of Salt Lake City, a Funk Software channel partner. "The heightened security and serverless authentication features on the 2.0 Appliance make it attractive to time- and budget-conscious enterprise customers. I am excited to add the 2.0 Appliance to Proactive's security product portfolio."

"Since first teaming with Network Engines in March to design and build an appliance solution, we have broadened our user base by providing a high-quality, high-performance platform," said Joe Ryan, Funk Software Vice President. "Its ability to centrally manage and secure WLAN, wired 802.1X, and remote users makes Steel-Belted Radius a mission-critical application, and the Steel-Belted Radius Appliance is a compelling option for today's cost-conscious IT departments. "

Network Engines is offering a special promotion to existing Steel-Belted Radius software customers. Customers can upgrade from any version of Steel-Belted Radius/Enterprise Edition to the Steel-Belted Radius Enterprise Edition Appliance. All sales and distribution of the appliance are managed through TidalWire, the distribution arm of Network Engines.

In addition to the fast deployment, enhanced security and simple maintenance found in previous versions, the 2.0 appliance offers enterprise users:

Cisco PEAP support, extending the product's earlier support for the Microsoft PEAP, EAP-TLS, EAP-TTLS, LEAP and EAP-MD5 methods of securely authenticating WLAN users under the IEEE's 802.1X security standard. The upgrade will enable enterprises to deploy Steel-Belted Radius Appliances within Cisco infrastructures and add new flexibility in the choice of WLAN clients.

Easier authentication management for Windows NT Domain or Active Directory groups, enabling administrators to design back-end directories in any way they desire.

User-based accounting for EAP-TTLS in anonymous mode, a feature that enables enterprises to track users' wireless network activity for auditing purposes when EAP-TTLS anonymous tunneling is used to maximize security over the wireless link.

Capturing of SQL reject information, a feature that operates in conjunction with the product's new user redirection support.

Logging of reject details, providing additional diagnostics to help administrators determine why users are unexpectedly denied network access.

Source IP access, enabling the source of the RADIUS request to be used in authentication and authorization processing.

About Network Engines

Network Engines (NASDAQ: NENG) is a leading development, manufacturing and distribution partner for storage and security software vendors and equipment providers worldwide. The company works with software partners to develop, manufacture, and distribute server appliances for mission-critical storage and security networking applications. TidalWire, Network Engines' distribution operation, offers a full complement of appliances, related products and components to over 500 value-added resellers and systems integrators who provide storage and security networking solutions to the enterprise. Headquartered in Canton, Massachusetts, Network Engines was founded in 1997. For additional information on the Company's products and services visit www.networkengines.com.

Statements in this press release regarding Network Engines' future financial performance and any other statements about future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including those factors contained in the respective company's most recent Annual Report on Form 10-K and most recent Form 10-Q and other reports filed with the Securities and Exchange Commission.

Network Engines and the Network Engines logo are trademarks of Network Engines, Inc. RSA, ACE/Server, are registered trademarks or trademarks of RSA Security, Inc. in the United States and/or other countries. Digipass is a registered trademark of VASCO. All other trademarks are the property of their respective owners.