NETWORK ENGINES –

Randolph, Mass.

Went public 7/13/2000 at $17 per share

Filing Range: 6.5 mil. shares @ $16 to $17

Shares Outstanding: 32.9 mil. shares

Underwriters: Donaldson, Lufkin & Jenrette/Dain Rauscher Wessels/Robertson Stephens/DLJdirect Inc.

Company Counsel: Hale & Dorr LLP

Manager Counsel: Testa Hurwitz & Thibeault

Auditor: PricewaterhouseCoopers

The Company:

Designer, developer and marketer of specialized hardware and software devices created for Internet Web servers. The company manufactures high-speed clustering technology to cost-effectively meet requirements for fault-tolerant, high-performance application servers.

Venture Backers:

HarbourVest Partners LLC

Ascent Venture Capital Management

Canaan Partners

MDT Advisers Inc.

Egan-Managed Capital

Corning Capital

Landmark Partners Inc.

Kestrel Venture Management

Memorial Drive Trust

Financing Rounds:

Number of Round Amt.

Round # Round Date Stage Investors ($ thousands)

1 04/01/1997 1 Expansion 1000.0

2 10/01/1997 1 Expansion 1000.0

3 01/01/1998 1 Expansion 800.0

4 04/01/1998 1 Expansion 1000.0

5 12/08/1998 6 Later Stage 1100.0

6 01/14/1999 1 Expansion 1571.0

7 06/16/1999 5 Later Stage 3094.0

8 12/21/1999 8 Expansion 25250.0

Financials:

(Data in $ millions)

Y/E

09/30/99

Total Revenues: $6.0

Net Income: -5.8