San Jose and Fremont, CA, March 2, 2006 - Following on their recent partnership announcement in October, 2005, Bay Microsystems, the leader in high performance network processing solutions, and Network Equipment Technologies, Inc (NYSE: NWK) today announced that their jointly developed high-speed, multiservice platform was delivered for Federal government lab trials earlier this week. The N.E.T. NX5010ae is a compact, scalable, 10 Gigabit per second multiservice aggregation and switching platform for high performance government and commercial networking and grid computing applications.

Responding to increasing demand for secure, high speed, multiservice networking and LAN/SAN virtualization, the NX5010ae provides a powerful, versatile and cost-effective solution for mission-critical networks. The NX5010ae utilizes Bay Microsystems' industry leading Biscayne™ and Montego® programmable network processors to enable line-rate multiservice protocol conversion and transport with hard QoS (Quality of Service) management capabilities. As an agile high speed exchange, the NX5010ae enables geographically distributed computing and storage resources to operate as if they were co-located within the same LAN or data center.

"Our partnership with Bay leverages the strengths of both companies in delivering networking solutions to the Federal government," said C. Nicholas Keating, president and CEO of N.E.T. "The rapid development and delivery of the NX5010ae demonstrates that the partnership is working very well. We're extremely pleased to gain an immediate government lab trial slot driven by strong end-customer demand." Following the NX5010ae, the partners plan to deliver a 40G multiservice network exchange in the future.

"The N.E.T. partnership gives Bay quick access to installed networks to prove out our agile edge technology," said Chuck Gershman, president and CEO of Bay Microsystems. "N.E.T. has been a great partner, providing Bay with sharply increased scale and reach. Through our co-development efforts, we're discovering synergies between the companies to exploit in future higher performance products."

The N.E.T. NX5010ae will be shown next week at the Optical Fiber Conference & Exposition and the National Fiber Optic Engineers Conference (OFC/NFOEC) in Anaheim, CA in booth #1255 hosted by the US Naval Research Laboratory. General availability for the N.E.T. NX5010ae is planned for June, 2006. Contact N.E.T. to schedule a demo or to obtain pricing information.

• Enables flexible and economical migration to secure IP/MPLS and IPv6 with full range of services for legacy networks
• Enables secure LAN (Ethernet) and SAN (InfiniBand and Fibre Channel) extension and internetworking between disparate networks
• Enables secure high speed, low latency grid computing internetworking over long distances
• Provides collapsed-edge aggregation of 10 Gbps and higher, eliminating the need for multi-element, multi-vendor solutions
• 2 RU compact form factor
• Scalable to 160Gbps

Network Equipment Technologies, Inc. is a leading provider of multiservice network exchange solutions that enable flexible, cost-effective network evolution. A pioneer of the networking industry, N.E.T. has been delivering network exchange solutions to government and commercial customers for more than 20 years. Visit www.net.com. Any Service, Any Network, N.E.T.

Bay Microsystems is a privately held communications technology company delivering programmable packet and transport processors, and network elements that empower the world's most demanding broadband networks. Award-winning Bay Internetworking Processor™ products are scalable, intelligent, protocol-agile and ultra-high performance, and are used in U.S. Government and commercial networks to provide robust high quality end-user experiences. For more information please visit www.baymicrosystems.com.

N.E.T. Contact:
Jay Haines
510-574-2454
Contact:

Bay Microsystems Contact:
Bill Weisinger
408-437-0400
Contact: Info at Bay