Vircom and Network Engines partner for performance

Vircom Selects NEI Appliance Solution and Logistic

Canton, MA, - October 8, 2008 - (NASDAQ: NENG) NEI today announced that Vircom, an award-winning e-mail messaging security software company, has chosen NEI as its OEM appliance solution provider. NEI’s technology and services enable Vircom to more efficiently and rapidly expand its product portfolio, beginning with a new series of ModusGate™ appliances available later this month. Vircom’s first new ModusGate appliance will be built on NEI’s S1200 solution with mid-range and high-capacity solutions soon to follow.

With NEI’s lifecycle approach to building appliance solutions under tightly controlled engineering and manufacturing processes, every Vircom platform meets exact specifications – making the integration of Vircom’s software image and the appliance hardware easier to manage for the company and guaranteeing consistency for the end user.

With an expanding appliance portfolio, Vircom is now able to offer their e-mail messaging security software products to customers as appliance-based solutions that address email security and compliance for the SME, large enterprise and service provider markets, with a focus on verticals such as finance, manufacturing, and health care, among others.

For almost fifteen years, Vircom has been a leader in the e-mail protection field, consistently surpassing the competition with its innovative suite of Modus products. More than 2,500 Vircom clients use Vircom’s Modus™ technology, which protects more than 6.6 million boxes worldwide.

Jean-Marc Robillard, director of product management, Vircom said, “We were concerned about our ability to meet growing demand so we brought NEI in to shorten our lead time to delivery, which had been averaging six weeks. We were also trying to even out the fluctuation in forecasting that created problems for end-of-quarter sales and shipment spikes.”

Since Vircom estimates shipping 60% more appliance units in calendar 2008 over 2007, the company liked NEI’s approach of working from a rolling 90-day forecast to better determine stock inventory levels. “We look forward to working with NEI and having visibility and control over our inventory so we’re in sync on the status of our products and orders and have access to critical information that will enable us to react quickly to changing market demands,” added Mr. Robillard. “We were also impressed with NEI’s message throughput test results and are excited to offer our customers competitively superior performance and lifecycle value.”

NEI provides the engineering, manufacturing, logistics and technical services required to deliver software applications as network appliances. The company develops appliances that ease deployment and enhance the manageability and security of mission-critical software applications for NEI’s Original Equipment Manufacturer (OEM) customers like Vircom.

“Our business model is designed to be flexible and that makes it easy for software developers to be in the hardware business without having to contend with the up-front investments in product and working capital,” said Rusty Cone, senior vice president of sales and marketing, NEI. “We believe our technical expertise and Smart Services approach, including our ability to guarantee the integrity of the target platform, sets us apart in the market.”

Vircom’s new ModusGate™ appliances will be generally available later this month. For volume pricing, please contact a local Vircom sales representative.