Network Hardware Resale Continues Increased Market Momentum with Strong 2006 Financial Results and Record Growth.

Company Exceeds Revenue Projections while Achieving 31 Percent Growth to Fuel Worldwide Expansion and Increased Distribution of Pre-Owned Networking Equipment

SANTA BARBARA, Calif. -- Network Hardware Resale (NHR), the leading provider of pre-owned and new networking equipment, today announced record annual revenues for 2006, fueled by the company's steady international expansion, the introduction of new products and services as well as an ever-increasing global customer roster. Revenues for 2006 were $138.2 million, representing a 31 percent year-over-year growth rate.

The milestone 2006 financial performance contributed to positive EBITDA for the 28th consecutive quarter. NHR also continued its global expansion plans, reinforced by a fourth-quarter sales surge in the Asia-Pacific region. In 2006, sales to the APAC region grew 58 percent over 2005, while the company also experienced continued market momentum throughout the United States and Europe. According to Karen Anne Platt, chief financial officer of NHR, the company surpassed aggressive revenue goals for the year. "We exceeded our revenue expectations for NHR's 20th anniversary year, which positions the company for continued growth in 2007 and beyond," she said.

Nearly 3,000 new customers chose NHR last year as a trusted source for pre-owned network routers, switches, access servers and IP telephony products. More than 10,000 customers worldwide regularly purchase high-quality networking equipment from NHR, including Global 1000 organizations, small- and mid-sized enterprises, government entities, educational institutions, healthcare organizations and telecommunications service providers.

In delivering optimum support to its worldwide customers, the company expanded its distribution facilities in the U.S. and the Netherlands while increasing its presence in the Asia-Pacific region. "By broadening our current capabilities and extending our international footprint, we can fulfill the company's long-range plans and ensure strong, sustainable business success," explained Mike Sheldon, president and CEO of NHR. "Our record revenues in 2006 coupled with our ongoing expansions are further proof of NHR's company-wide commitment to being the ultimate source for pre-owned networking equipment."

Founded in 1986, NHR continues to expand its product portfolio along with its global operations. The company maintains an extensive inventory of pre-owned Cisco, Juniper and Extreme equipment. In September 2006, NHR also entered into an asset recovery and reseller agreement with Force10 Networks to accelerate the deployment of high-performance, scalable networks.

NHR currently offers a full range of complete network fulfillment, disaster recovery, testing and sparing as well as asset recovery solutions. As one of the first providers in the secondary market to offer standard one-year warranties on all equipment, NHR continually embraces business best practices to ensure product integrity and the highest levels of quality customer service.

About Network Hardware Resale

Network Hardware Resale (NHR) is a leading provider of high-performance pre-owned Cisco, Extreme and Juniper networking equipment. The company also is an authorized reseller of resilient, massively scalable networking gear from Force10 Networks. Founded in 1986, the Santa Barbara, Calif.-based organization has been recognized by Inc. Magazine as one of the fastest growing private companies in the United States for four consecutive years. NHR provides global sales and technical support from its California, New York City metro and Amsterdam locations. More than 10,000 organizations worldwide purchase quality networking equipment from NHR, including Global 1000 companies, small and mid-sized enterprises, government entities, educational institutions, healthcare organizations and telecommunications service providers. For more information, visit www.networkhardware.com.