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Covast, Network Engines Introduce the Covast B2B Appliance for RealTime Networks
Industry’s First Microsoft BizTalk Appliance for B2B Integration

ATLANTA - October 3, 2006 - Covast and Network Engines, Inc. (NASDAQ: NENG) announced today the introduction of the Covast B2B Appliance for RealTime Networks. As the market's first Microsoft BizTalk appliance server specifically designed for B2B integration, the Covast B2B Appliance for RealTime Networks combines the power of Covast's integration solutions on Network Engines' leading appliance server for distributed and critical applications. The result is an integrated solution of hardware and software that quickly achieves B2B integration, while requiring only the Internet and a local area network (LAN) for operation.

The Covast B2B Appliance for RealTime Networks is ideally suited for today's complex supply chains. Currently, large companies in the supply chain struggle to do business with smaller trading partners because of fundamental B2B integration issues. In many instances, smaller companies are unable to meet the technological requirements of their large customers, such as RFID or EDI, because it is too difficult and costly to integrate critical business applications. Covast overcomes this challenge by giving large supply chain organizations a cost-effective and easy way to facilitate B2B integration with trading partners of all sizes.

By providing an appliance integration server that is pre-built with the software and hardware needed to support supply chain operations, Covast and Network Engines are lowering the barrier for smaller trading partners to integrate B2B applications with their large counterparts. Companies deploying the Covast B2B Appliance for RealTime Networks are able to automatically distribute and integrate critical business applications to trading partners. In effect, this allows all supply chain partners to easily conduct trading activities, while seamlessly connecting to the world's largest trading grids.

"Many supply chains suffer from a disconnect that keeps smaller trading partners from easily doing business with their larger customers. Often, the issue is B2B integration. The Covast B2B Appliance for RealTime Networks eliminates this barrier by allowing full B2B integration throughout the supply chain at a financial and resource cost that is feasible for all parties," said Daan Scheer, CEO, Covast.

Benefits of the Covast B2B Appliance for RealTime Networks include:

  • Pre-installed Software: The Covast B2B Appliance for RealTime Networks features pre-installed software required to achieve fast B2B integration, including Microsoft BizTalk Server, Microsoft Windows Server, Covast B2B Appliance Configuration and Deployment Engine and others.

  • Simple Self-Configuration: Using settings stored on a real-time network, the Covast B2B Appliance for RealTime Networks configures itself automatically. This eliminates IT resources and significantly reduces implementation times.

  • Increased Security, Predictability: The solution features advanced application-layer firewall, VPN and web cache functionality to maximize protection for core Microsoft infrastructure applications.

  • Low Cost of Ownership: The Covast B2B Appliance for RealTime Networks reduces the time and cost associated with managing multi-vendor software applications and hardware.

  • High Level of Performance: Using the Covast B2B Appliance for RealTime Networks, companies can communicate with trading partners and internal systems using a high-performing combination of secure connectivity, powerful software and hardware technology.

  • Improved Supply Chain Visibility: By achieving B2B integration throughout the supply chain, companies are able to improve visibility, manage key business processes and optimize business activity for gains in operational efficiency and productivity.

  • The Covast B2B Appliance for RealTime Networks gives companies a simple solution for what has traditionally been an exceedingly complex problem. With a low cost of ownership and a high level of performance, this solution is an easy and affordable way to optimize supply chain operations," said Greg Shortell, president and CEO, Network Engines.

To learn more about the Covast B2B Appliance for RealTime Networks, please visit www.covast.com.

About Covast
Covast is a leading provider of business-to-business integration solutions for collaborative business environments. The company provides integration solutions that bridge the gap between legacy electronic data interchange (EDI) applications and today's new Internet standards. The suite of products that Covast offers is designed to facilitate fast and cost-effective business-to-business integration with single platform environments, such as those supported by Microsoft BizTalk Server and IBM WebSphere. Covast is a Microsoft Gold Certified Partner and an IBM Business Partner. With its European headquarters in the Netherlands and its U.S. headquarters in Atlanta, Covast has strategic relationships with partners and customers including GXS, Accenture, EDS, HP, Citrix and Siemens. For more information, visit www.covast.com.

About 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 June 30, 2006 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 and the Network Engines logo are trademarks of Network Engines, Inc. All other registered and unregistered trademarks in this document are the sole property of their respective owners.

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