SBE Announces Two iSCSI Design Wins; PyX iSCSI Software Selected for Integration into SAS and SATA Storage Servers.

SAN RAMON, Calif. -- SBE Inc., (NASDAQ:SBEI), a leading provider of high-performance IP-based networking solutions for next-generation storage and communications systems, today announced that two networking and storage equipment providers, Open Source Storage (OSS) and Yang Ming International (YMI) Corporation, have chosen to license and integrate SBE's PyX iSCSI target software into their next generation storage devices.

OSS is porting SBE's PyX iSCSI software to its Linux-based SATA storage server solutions supporting up to 16 terabytes. A leading provider of high-performance networking solutions for the open source community, OSS specializes in supplying large-scale data centers with robust and reliable systems that can address its customers' mission-critical applications.

"Our development team has been very pleased with the results of the evaluation and testing that we've conducted on the PyX iSCSI target and initiator stacks," commented Eren Niazi, Chief Executive Officer of OSS. "Particularly, we are eager to bundle the advanced performance features, full standards compliance and interoperability of the PyX iSCSI solution into our new SATA box so our customers can reap the many benefits."

YMI is using the PyX iSCSI target protocol stack in both their Rackmountpro-branded Serial Attached SCSI (SAS) and Serial ATA (SATA) storage servers. Established over a decade ago as a provider of networking equipment, including servers and chassis, YMI sells its product solutions directly to the government, educational institutions, major enterprises and small businesses.

"After considering various iSCSI solutions available in today's market, we selected SBE's PyX iSCSI protocol stack for several reasons," said Jack Lin of YMI Corporation. "One was clearly the strong technical knowledge and support that SBE provided during the product evaluation process. Most importantly, the PyX iSCSI target software best suits our customers' requirements, delivering a full feature set and exceptional performance at an affordable price. We validated our decision last month at the Supercomputing show where we successfully demonstrated the SATA storage server running SBE's PyX iSCSI target stack."

"We're pleased that OSS and YMI have chosen our iSCSI stack for their new storage products, and look forward to broadening our reach into their established bases of enterprise, government, educational, and technology customers via these SAS and SATA devices," commented Chris Short, Vice President of Business Development at SBE. "The OSS and YMI wins came as direct results of enhancing our channel strategy with proven manufacturer's representative firms -- in this case from Fourfront and Centaur, respectively. And, based on the flurry of opportunities that our new reps have already introduced us to in the last few weeks, we expect to see our recently expanded distribution channel produce further successes as we head into 2006," continued Short.

Both the OSS (www.opensourcestorage.com) and YMI (www.rackmountpro.com) storage devices featuring SBE's PyX iSCSI software will be available in the first quarter of 2006.

PyX iSCSI Protocol Stack

The advanced features designed into the architecture of the PyX iSCSI protocol stack enables efficient and cost-effective storage transport by optimizing bandwidth usage, enabling unlimited storage to be attached to each target device, and leveraging existing network technologies. The iSCSI technology, fully compliant with the IETF RFC 3270 standard, enables an enterprise-level IP storage platform that transports data to and from networked storage with full error recovery (ERL2), automatic load balancing, and multi-path capabilities previously available only in costly Fibre Channel architectures. Because of the ubiquity of IP networks, iSCSI transmits data from any storage (SATA/SAS/SCSI, Fibre Channel/etc.) over LANs, WANs, or the Internet and enables location independent data storage and retrieval.

About SBE

SBE designs and provides IP-based networking solutions for an extensive range of applied computing applications. SBE delivers a portfolio of scalable, standards-based hardware and software products, including iSCSI and VoIP, designed to enable optimal performance and rapid deployment across a wide range of next generation communications and storage systems. Based in San Ramon, California, SBE is a publicly traded company (NASDAQ:SBEI) with products sold worldwide through direct sales, OEMs and system integration partners. For additional information, please visit www.sbei.com.

This news release contains certain forward-looking statements that involve risks and uncertainties, including statements about new product features, market opportunity for new products, and the demand for services that may be offered by SBE's customers. Such statements are only predictions and the company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include, but are not limited to risks related to rapidly changing product requirements, the introduction of new products, market acceptance of the Company's products, and reliance on strategic partners. These factors and others are more fully discussed in the documents SBE files with the Securities and Exchange Commission, including SBE's Annual Report on Form 10-K.

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