Kontron Teams with NEI to Co-Develop and Market Highly Integrated AdvancedTCA Platforms

Collaboration intended to broaden customer choice and accelerate time to market

Poway, CA - June 17, 2008 - Kontron (TecDAX: KBC), a leading global provider of standard-based and custom embedded and communications solutions, and NEI (NASDAQ: NENG), a leading provider of server appliance products and services for storage, security and communications software vendors, announced today a signed agreement to co-develop and market highly integrated AdvancedTCA platforms designed to expand customer choice and accelerate time to market. NEI will use Kontron's extensive selection of GbE/10GbE AdvancedTCA and AdvancedMC products to expand its best-in-class approach to integrating solutions that match application requirements.

To illustrate the technical benefits of this collaboration, Kontron and NEI will demonstrate a 2U AdvancedTCA IPTV solution (featuring the Kontron OM9020 AdvancedTCA 2U series platform) during NXTcomm 2008 in Las Vegas, Nevada at booths SL4123 and SL3924, respectively.

Michael Kadri, vice-president of sales at Kontron America, said, "Feedback from telecom equipment manufacturers is extremely positive. They require greater choices as they look to solve next-generation application requirements that include higher capacity, performance and availability. More importantly, Kontron and NEI share a key business objective: to help customers get new applications to market faster. This and other market demands are increasingly directing them to rely on a single source for commercial-off-the-shelf solutions -a source that provides holistic application-to-system deployment capabilities. Time and cost savings for developers can be tremendous and their global carrier and service provider clients will be able to roll-out new subscriber services much more efficiently."

"This is a winning combination," said Ron Pugh, senior vice president of sales at NEI. "Customers need best-in-class integration services that combine technical expertise, quality manufacturing, broader product choices and an array of value-added support services-all from a single source. Our collaboration enables us to provide more extensive, feature-rich offerings to our customers worldwide."

For more information, please visit: www.kontron.com/AdvancedTCA

About NEI

Founded in 1997, NEI is headquartered in Canton, Massachusetts and trades on the NASDAQ exchange under the symbol NENG. NEI network appliance solutions are made to ease and enhance the deployment, manageability and security of IT infrastructure applications. With a heritage of providing product and service technologies tailored to support the entire lifecycle of its customers' appliances, NEI has become the appliance partner of choice for OEMs, ISVs and software integrators worldwide. For more information about NEI's products and services, visit www.nei.com.

About Kontron

Kontron designs and manufactures standard-based and custom embedded and communications solutions for OEMs, systems integrators, and application providers in a variety of markets. Kontron engineering and manufacturing facilities, located throughout Europe, North America, and Asia-Pacific, work together with streamlined global sales and support services to help customers reduce their time-to-market and gain a competitive advantage. Kontron's diverse product portfolio includes: boards and mezzanines, Computer-on-Modules, HMIs and displays, systems, and custom capabilities. Kontron is a Premier member of the Intel® Embedded and Communications Alliance. The company is a recent three-time VDC Platinum vendor for Embedded Computer Boards. Kontron is listed on the German TecDAX stock exchange under the symbol "KBC". For more information, please visit: www.kontron.com.

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