NETMACHINES SIGNS WORLD CLASS MANAGEMENT TEAM TO BRING LINUX-CENTRIC SERVER SOLUTIONS TO CORPORATE AMERICA

Palo Alto-Based Company Pairs Top Talent from ISP Channel, Netscape, TuneUp.com, and Xerox to Form Dynamic Management Team

SAN JOSE, October 26, 1999 - Peter Tsepeleff, president and CEO of the newly launched Palo Alto, California-based NETmachines Inc., today announced that the company has assembled a stellar line-up of seasoned industry talent to bring a new level of Linux-based server appliances to ISPs, small and medium sized businesses and vertical markets, such as education and healthcare. The company began operations earlier this year and plans to launch a line of advanced Linux-centric server solutions next month.

NETmachines' President Tsepeleff brings more than 20 years senior management, sales and marketing experience to the company. Working with technology leaders, such as Shugart Corp., Trident Microsystems, TeleVideo and Smart Link, Ltd., Tsepeleff provides a proven history of success to the company. With his direction, Tsepeleff has assembled a team steeped in ISP, Linux, Unix, hardware and networking expertise.

"I believe that this is the finest team ever assembled in our industry and that these people will quickly drive NETmachines to be the undisputed leader of Linux-centric server appliances," said Peter Tsepeleff, president of NETmachines, Inc. "With our combined talents, NETmachines is armed with an unparalleled powerhouse of talent and passion that should prove to be unbeatable in this quickly evolving market."

Management Team Brings Wealth of Technical and Industry Experience
Chief Technical Officer, Bob Evans, provides the foundation for NETmachines' technical directions. As the founder of Media City World, one of the first ISPs in Silicon Valley, Evans has been a pioneer in the broadband TCP/IP cable market. Building upon strong business success, Evans founded ISP Channel, which today connects 2 million homes and is the third largest cable Internet provider in the U.S.

Evans also founded AutoTalk, Inc. and International Teletext Communications, Inc. where he invented, developed, manufactured and sold various television data imbedding transmission and receiving devices. Furthermore, his experience includes technical and management positions with Helgesons Nuclear Services and Data Point. Evans' technical background includes satellite modulation and networking, RF devices, routers and software experience with FreeBSD, Solaris, Linux and Windows NT.

Vice President of Technical Operations, Rod Beckwith, brings more than 15 years of engineering Internet backbone and networking experience. Prior to joining NETmachines, Beckwith was the VP of Technical Operations for the ISP Channel Inc., a division of Softnet (NASDAQ: SOFN). As VP of Technical Operations, Beckwith managed a staff of 50 engineers and technicians. During his tenure at the ISP Channel, Beckwith built and designed a Network Operations Center and Data facility to accommodate 1 million customers for the company.

As one of the original engineers at Netscape, Beckwith designed and implemented all of Netscape's internal as well as external networks. Additionally, Beckwith was one of the founders of Internet Systems, Inc., which was acquired by Frontier Global, one of the world's largest ISPs. Beckwith also draws upon his experience from Silicon Graphics where he designed and deployed much of Silicon Graphic modem, internal backbone and frame relay infrastructure.

Pat Dane, Vice President and CMO, provides more than 20 years high-technology experience to NETmachines. Industry renown as an "Internet Guru," Dane founded TuneUp.com, Cyber-movers.net, and was a co-founder of PipeLine Communications, which was the first company in the world to introduce online registration.

Leading into his Internet career, Date worked at Xerox where he conceived the award-winning tag line, "Team Xerox," as well as where he was responsible for bringing the Alto Computer and file, print and communications servers to the public from the Palo Alto Research Center (PARC).

In 1995, Dane formed Dane Interactive, which helps select a group of well managed Internet companies find distribution for new media content and technologies. His company's list of clients includes: Softbank, Hewlett Packard, CompuServe, Big Planet, the Learning Company, Microsoft, Quarterdeck and Compaq. Prior to founding Dane Interactive, Pat was the President and CEO of SoftNet.com, where he launched the award-winning FaxWorks for Windows program.

Tsepeleff concludes, "With the caliber of expertise coming from industry leaders, such as Netscape, ISP Channel, SoftNet, Media City World, TeleVideo and Xerox, NETmachines is positioned to leverage this talent pool and create the best solutions for ISPs, and corporate America."

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 resellers that service vertical markets such as education and healthcare.

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Editors' Note: More information about NETmachines, RedRak 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.