Contacts:
Chris McKie
McKie Headstrom PR
408-942-0633
chris_mckie@mhpr.com
For Immediate Release

NETMACHINES AND CYBERNET FORGE LINUX ALLIANCE

Boardseat, Equity and Intellectual Property Investments from Cybernet Enable "Best-of-Breed" Linux Solutions for NETmachines' RedRak Thin-Appliance Servers

SAN JOSE, January 24, 2000 - In an aggressive move to take a leadership role in the emerging market of Internet appliances and Web servers, NETmachines, Inc. today announced that Cybernet Corporation, a leading developer of Linux-based thin server applications, has taken an investment position in NETmachines and will share intellectual property to further develop "best-of-breed," customized Linux-based solutions, based on the widely popular Red Hat Linux operating system. As part of this new alliance, Cybernet President Charles Jacobus, Ph.D., will take a seat on the board of directors for NETmachines.

"With this influx from the industry's best commercial focused Linux distribution, NETmachines gains a significant resource to further develop robust, yet easy to use Linux-based thin-server solutions," said Peter Tsepeleff, president of NETmachines, Inc. "ISPs and businesses will now have a complete solution - hardware and software. E-commerce and Business-to-Business solutions have become to important to share hosting servers with other businesses. A dedicated, rack space saving , flexible appliance from NETmachines is a perfect cost effective solution. "

As evidenced by the growing demand to connect to the Internet, conduct e-commerce and leverage Internet services, such as e-mail, businesses have created a paradigm shift in the need for inexpensive Internet-enabling solutions. Reliability, ease of use, and simplified web page based manageability are the factors that are enabling Linux-based solutions to fill this void.

NETmachines manufactures Linux-based, thin-server Internet appliances under the RedRak name. Designed for maximum flexibility, RedRak servers offer ISPs and businesses with a proven, reliable and non-proprietary design that leverages an Intel chipset architecture. Now, with the input from Cybernet, RedRak servers will have an equally robust software solution to compliment their hardware performance.

Cybernet offers one of the most robust and comprehensive Linux suites that is designed to maximize and leverage the strengths of the Red Hat OS. With Cybernet, customers gain an elegant and intuitive GUI that enables almost anyone who can use a Web browser to set up, configure, start and manage an e-business initiative.

"As an aggressive, Internet-enabling solutions provider, NETmachines clearly shows a promising future," said Greg Emery, vice president, marketing and sales of Cybernet. "With this alliance, NETmachines stands to gain the most comprehensive suite of Linux-based thin server products based on Cybernet's NetMAX product line. This includes Web server, e-mail, file server, and firewall that can be up and running in less than fifteen minutes."

NETmachines' RedRak servers are available this month, and are FCC class B, UL, CE, TUV and CSA certified. RedRak servers are backed by a one-year warranty and a leading service and support infrastructure. Estimated street prices for entry-level RedRak servers begin at $999.

About Cybernet Cybernet Systems is a technology research and development company that has become a leading provider of Linux and FreeBSD based operating systems. Reasearch and Development contracts include various branches of the U.S. Government, and through work with leading corporations such as Ford Motor Company and the A.I. du Pont Institute. The company is headquartered in Ann Arbor, Michigan. More information on Cybernet or its NetMAX product line is available on the world wide web at www.cybernet.com or www.netmax.com.

About NETmachines, Inc. NETmachines Inc. is a leading developer of Internet, e-commerce and Linux-centric appliance and communications solutions. NETmachines commands a rich Linux, networking and hardware expertise to forge their RedRak solutions that lead the industry with unparalleled performance, reliability, affordability and ease of use features. Headquartered in Palo Alto, California, NETmachines' RedRak solutions are sold direct to ISPs, small and medium sized businesses and value added resellers (VARs) that service vertical markets. To learn more visit www.NETmachines.net.

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Editors' Note: More information about NETmachines, RedRak server solutions, services and business partners is available on the World Wide Web at: (http://www.NETmachines.net)

NETmachines and RedRak are trademarks of NETmachines, Inc. All other products, brand names or companies are trademarks or registered trademarks of their respective companies.