Network Equipment Technologies Selects Microsoft Dynamics AX to Streamline and Automate Business Process

REDMOND, Wash. — Oct. 9, 2006 — Microsoft Corp. today announced that Network Equipment Technologies Inc., or NET, (NYSE:NWK), a global provider of multiservice network exchange solutions for government and enterprise clients, has chosen Microsoft Dynamics™ AX to more effectively manage the company’s enterprise resource planning (ERP) activities.

NET, which has approximately 250 employees and 30 offices worldwide, selected Microsoft’s business management solution to streamline its sales transactions and financial systems as well as improve processes with its supply chain and contract manufacturing facilities. NET expects the new implementation will also result in significant cost savings related to system maintenance and ongoing enhancements. The company intends to implement the new ERP system at the start of its new fiscal year, which begins April 2007.

“The decision to move away from Oracle ERP software to Microsoft Dynamics AX was a straightforward business decision for NET,” said Talbot Harty, chief information officer and general manager of Voice and Mobility Solutions at NET. “For us, the product cost was less than the cost of one year’s maintenance for our current system. In addition, it’s easier to configure, it’s familiar to our people, and it’s nimble enough to adapt to the changing needs of our company.”

NET, a 20-year-old company headquartered in Fremont, Calif., anticipates better on-time delivery and lower cost of production throughout its worldwide subsidiaries, as well as the ability to cost-effectively manage outsourced supply chain and manufacturing activities. With Microsoft Dynamics, flexible configuration of sales transactions will help ensure that activities ranging from updating raw material and subassembly stock to tracking order status and creating invoices will become automated processes down to each individual customer order.

“Microsoft Dynamics AX was built to break down the barriers to ERP,” said Mark A. Jensen, general manager of Microsoft Dynamics AX at Microsoft. “Companies have had to deal with a lot of complexity to reap the benefits of traditional ERP solutions, especially when applying them to the needs of specific industries. Microsoft has come to the table with a highly customizable application that can scale to the needs of businesses like NET effectively and affordably.”

Microsoft Dynamics AX will sit atop NET’s overall Microsoft® platform, providing significant ease in managing data from Microsoft SQL Server™ via desktop applications such as Microsoft Office Excel® and Microsoft Office Word. The company will also take advantage of significant back-end development, built on the Microsoft .NET Web services strategy and SharePoint® Portal Server technology, while integrating NET’s own VX Voice Exchange with Microsoft’s unified communications solution to provide a powerful, completely integrated business systems platform.

Fullscope Inc., a Microsoft Gold Certified Partner and member of the Microsoft Business Solutions President’s Club and Microsoft Business Solutions Inner Circle, will deploy the Microsoft Dynamics AX solution for NET. Fullscope has deep domain expertise in Microsoft Dynamics AX and a long history of successful implementations for companies with process, discrete and hybrid manufacturing operations.

“Fullscope’s rapid implementation methodology coupled with the ease of use and configurability of Microsoft Dynamics AX allows the technology to become an enabler and not a hurdle,” said Chris Moore, managing director of Fullscope. “In a word, it’s about simplification — and Microsoft Dynamics AX delivers.”

About Microsoft Dynamics AX

Microsoft Dynamics AX is an adaptable business management solution that enables companies and their workers to make business decisions with greater confidence. Microsoft Dynamics AX works like and with familiar Microsoft Office software, with comprehensive features that help automate and streamline business processes, and connect users with global customers, business partners and subsidiaries in a way that helps drive business success.

About Microsoft Dynamics

Microsoft Dynamics is a line of financial, customer relationship and supply chain management solutions that helps businesses work more effectively. Delivered through a network of channel partners providing specialized services, these integrated, adaptable business management solutions work like and with familiar Microsoft software to streamline processes across an entire business.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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