Overview
NETmachines, Inc., is a leading developer of Internet, e-commerce and Internet-based appliance and communications solutions. Leveraging the strengths and flexibility of the Linux operating system, NETmachines commands rich Linux, networking and hardware expertise to forge robust, yet easy to use Linux-centric solutions. Headquartered in Palo Alto, California, NETmachines solutions are sold direct to ISPs, small and medium-sized businesses, and resellers that service vertical markets, such as education and healthcare.

Industry Perspectives
Two factors are dramatically changing the demand for Internet server solutions: the mass adoption of e-commerce and the inherent strengths of Linux - its cost efficiency, stability, flexibility and reliability.

Adding to this, many businesses are adopting advanced Internet strategies that include co-hosting, fragmenting and mass deployment of Internet/Intranet servers. This expansion is fueling massive demand for top of the line servers that exhibit mainframe performance and reliability, yet include the price and ease of use features found in a home PC.

Additionally, many department level organizations that lack a dedicated IS/IT support team are turning to low cost of ownership, Linux-based server solutions for their Intranet, Web proxy and messaging needs.

In contrast, for many small to medium sized business, their Internet/e-commerce solutions reside with an ISP that co-hosts, develops and manages many of their Internet needs. Because of the size and tremendous potential of this market, ISPs continue to demand high-performance, low-cost resources to meet the explosive growth of this market.

These market dynamics all point to the need of Linux-based server solutions that incorporate high-performance technology, but are easy to use and extremely affordable. In short, the market is starving for Net machines.

Corporate Heritage
Leveraging a rich history steeped in Unix, Linux, Internet, ISP and communications technologies, NETmachines melds a wealth of market, industry, technology and customer experience to offer innovative, pragmatic, and powerful solutions specifically for ISPs and commercial market segments.

Privately held, NETmachines is built upon a solid, industry-leading management and focused vision. Founders include top-ranked executives of innovative companies such as Autotalk Inc., ISP Channel Inc., MediaCity World, Netscape, Silicon Graphics, SoftNet.com, Smart Link, Tuneup.com, and Xerox.

As a testament to NETmachines technical prowess and capabilities, NETmachines holds several strategic alliances with major Linux developers, ISPs and OEM hardware manufacturers to ensure that all NETmachines solutions stand to be the best in their class.

RedRak Solutions
In 1999, NETmachines proudly launched their first salvo of Linux-server solutions under the RedRak brand name. The following outline the strengths of RedRak solutions:

• Advanced Linux Capabilities - Leveraging strategic partnerships and in-house Linux expertise, RedRak server solutions offer unique Linux solutions for maximum up-time, performance and future scalability;
• Unparalleled Pricing - As a dedicated Internet communications and Linux-based solutions company, NETmachines can leverage economies of scale to provide customers with the maximum computing solution for their dollar;
• State of the Art Solutions - Staying ahead of the technology curve is the key in this Internet age. That is why RedRak solutions employ the latest technologies to consistently give their customers a strategic advantage;
• Reliability - Because an e-commerce solution is the life-blood for many of today's thriving businesses, RedRak solutions are engineered to exhibit industry-leading performance, up-time and maximum reliability;
• Ease of Use - RedRak solutions are engineered to provide instant gratification and immediate return on investment. Designed for ease of use, all RedRak solutions are created to allow management to focus on business, not technology.

Service Solutions In addition to providing advanced Internet communications solutions to the market, NETmachines offers complete and comprehensive service solutions as well. A variety of nationwide service and support programs and a knowledgeable technical support team provide ISPs, resellers and business customers with rest assurance and peace of mind.

Corporate Headquarters
NETmachines, Inc. is located at:
2635 Park Blvd.
Palo Alto, Calif. 94306
Tel: 925-830-0388
Fax: 925-830-0382
www.NETmachines.net

Management
Peter Tsepeleff, President and CEO
Bob Evans, Chief Technical Officer
Rod Beckwith, Vice President, Technical Operations
Pat Dane, Chief Marketing Officer

Press/Analyst Contacts
Chris McKie
McKie | Headstrom PR
1613-A South Main Street
Milpitas, CA 95035
Tel: 408-942-0633