Network Equipment Technologies, Inc. Announces Preliminary Results for Q4 Fiscal 2005

Network Equipment Technologies, Inc. Announces Preliminary
Results for Q4 Fiscal 2005 


FREMONT, Calif., March 29  /PRNewswire-FirstCall/ -- Telecommunications
equipment maker Network Equipment Technologies, Inc. (NYSE:NWK), doing business
as net.com, announced today it expects to report revenue for the quarter ended
March 25, 2005, its fiscal fourth quarter, of between $23.0 and $24.0 million,
falling short of the guidance it had provided.  The Company expects to report a
loss for the quarter in the range of $0.15 to $0.20 per share.

During the conference call held in January 2005 following the release of
results for its fiscal third quarter, the Company had stated that it expected
revenue for the fourth quarter to be roughly $28-$32 million.

The Company expects revenue from new products, including SCREAM, SHOUT and
netMS, to be over 20% of the Company's product revenue for the fourth quarter
of 2005.  For the year ended March 25, 2005, the Company expects cash and
investment balances to have increased more than $6.0 million from the prior
year, and to end fiscal 2005 at over $108 million.

The Company also announced today that its Board of Directors approved the
repurchase of up to an aggregate of $10 million of its common stock.  The
repurchases will be made from time to time on the open market at prevailing
market prices or in negotiated transactions off the market.  The repurchase
program is expected to continue for up to the next twenty-four months, subject
to changes by the Board of Directors.  Hubert "Bert" Whyte, president and CEO
of net.com, said, "We believe that enacting this repurchase program is in the
best interest of the shareholders.  During the past six quarters, the Company
has consistently added to its cash balance, while positioning itself to take
advantage of a promising market, enterprise 'Voice over IP' migration."

net.com will report its fourth quarter and fiscal year 2005 results on
Wednesday, April 13, 2005 at the close of market.

In conjunction with this announcement, net.com will host a discussion of its
preliminary fiscal fourth quarter results with investors and financial analysts
tomorrow, March 30, at 8:30 a.m. EST/5:30 a.m. PST. To access the call,
listeners should dial 800-603-9684 from the U.S. or Canada and 706-643-1389
from International locations at least 10 minutes prior to the scheduled start
time. No access number or password is required. A limited number of dial-in
lines will be available. Alternatively, the discussion will be broadcast live
via net.com's website at http://www.net.com/ on the Investor Relations page. A
replay of the call will be available by approximately 10:30 a.m. EST Wednesday
by calling 800-642-1687 or 706-645-9291, access code 5088525 for the replay
only. An archived version of the discussion will also be available on the
Investor Relations page of net.com's website (http://ir.net.com/) shortly after
the conclusion of the live broadcast.

About net.com

Network Equipment Technologies, doing business as net.com, is a leading
provider of networking equipment that enables enterprises, governments and
carriers to adapt to a broadband future. An architect of the networking
industry, net.com has been supplying service providers, governments and

enterprises around the world with bulletproof networking technology for more
than 20 years. net performance. net results. net.com.

Visit http://www.net.com/ for more information.

NOTE:  SCREAM is a registered trademark, and SHOUT, netMS, and net.com are
trademarks of Network Equipment Technologies, Inc.

Forward looking statements

Statements made in this press release other than statements of historical fact
are forward-looking, including those relating to the financial results the
Company expects to report, the Company's positioning for the future, and the
timing of recognition of revenues. Investors are cautioned that these
statements are based upon current estimates and assumptions that involve risks
and uncertainties that might cause actual results to differ materially from
those expressed or implied in the forward-looking statements.  These risks and
uncertainties include the ability to deliver products in a timeframe sufficient
to allow for recognition of revenue in a particular quarter, possible
discrepancy between preliminary results and final results to be announced on
April 13, 2005, and other risks, including those identified in the Company's
filings with the Securities and Exchange Commission, including Forms 10-K and
10-Q, and in other press releases and communications.  Network Equipment
Technologies, Inc. disclaims any intention or obligation to update or revise
any forward looking statements, whether as a result of new information, future
events or otherwise. 

DATASOURCE: Network Equipment Technologies, Inc.



CONTACT:  Brenda Ropoulos, Director of Corporate Relations of net.com,

[phone], or 



Web site:  http://www.net.com/ 

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