Unipalm to Distribute Network Engines NS Series Security Appliances throughout the UK and Ireland.

NEWMARKET, U.K. & CANTON, Mass. -- Unipalm, a COMPUTERLINKS company, the UK and Ireland's foremost specialist distributor of Internet technology solutions and Network Engines, Inc. (NASDAQ: NENG), a leading appliance partner for Microsoft(R) security solutions, announce their agreement to distribute the Network Engines family of NS Series(TM) Security Appliances. The appliances have been developed in partnership with Microsoft to harness the power of the Internet Security and Acceleration (ISA) Server 2004 integrated with the full Websense(R) Web Security Suite(TM).

David Ellis, Director of e-Security at Unipalm, comments, "Unipalm has a strong relationship with Websense and nearly 65% of our Websense sales are deployed on Microsoft ISA Server. This agreement opens opportunities for our IT security resellers to accelerate their deployments and add incremental hardware sales to their software licence business. We selected Network Engines after a thorough review of a number of ISA Server platforms, concluding that the company's line of appliance-based security solutions is the strongest technical and commercial option for our reseller partners."

Gareth Green, General Manager EMEA and APAC at Network Engines said, "Unipalm's unique proposition to its reseller partners is based on second-to-none security expertise and professional services that will bring a powerful dimension to our growth strategy in the region. With Network Engines offering Websense integrated on NS Series Security Appliances combined with Unipalm's existing relationship with Websense, we can offer customers the best web security solutions to protect their Microsoft infrastructures."

NS Series Security Appliances are a family of multi-layer security platforms providing advanced application-layer firewall, VPN, and web cache functionality to maximize defense-in-depth protection for core Microsoft infrastructure applications including Exchange Server, SharePoint(R) Portal Server, and Internet Information Services (IIS). Integrated with Websense Web Security Suite, the appliances are exceptional web proxies, accelerating access to frequently requested web content while blocking spyware, viruses, worms, and Trojan horses from infected websites.

Based on a full-featured version of Microsoft ISA Server 2004, NS Series appliances combine ease of deployment with unified appliance management via NEWS(TM) - the Network Engines Web Services interface - to deliver the most comprehensive feature set available to defend Microsoft server assets. In the next two quarters, a multi-city seminar series planned by Unipalm and Network Engines will communicate the value of the integrated solution to resellers and end-user customers.

About Unipalm

Unipalm is the UK and Ireland's leading distributor of e-Business and e-Security solutions from technology world leaders such as Check Point, Nokia, Symantec, and Citrix (UK only). These companies have been carefully chosen to ensure that Unipalm partners can offer a complete solution. One hundred percent committed to the two-tier channel, Unipalm works with vendors, resellers, and users to deliver profitable growth and competitive advantage to their business partners. Unipalm provides the training, consultancy, sales, marketing and technical expertise needed to recommend, install, and support its portfolio. Unipalm is owned by COMPUTERLINKS, a public company trading on the German Prime Standard Market. For more information, visit www.unipalm.co.uk.

Network Engines - THE Appliance Company

Network Engines appliances are designed to ease the deployment, enhance manageability, and increase security of mission-critical software applications.

Our heritage of providing technology products and services tailored to the entire lifecycle of our customers' appliances has made us the appliance partner of choice for software market leaders.

Founded in 1997, Network Engines is headquartered in Canton, Massachusetts and trades on the NASDAQ exchange under the symbol NENG. For more information about the company's products and services, visit www.networkengines.com.

Safe Harbor for Forward-Looking Statements

Statements in this press release regarding Network Engines' (the "Company") future financial performance and any other statements about Network Engines' management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's 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 Company's most recent annual report on Form 10-K for the year ended September 30, 2005 and the most recent Form 10-Q for the quarter ended December 31, 2005 under the section "Risk Factors" as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. The Company assumes no obligations to update the information included in this press release.

Network Engines, Network Engines logo, NS Series and NEWS are trademarks of Network Engines, Inc. All other registered and unregistered trademarks in this document are the sole property of their respective owners.