Network Engines (NENG)
Sales Trend
1Q02 to 4Q03

Quarter    TidalWire     Centera    Others       Total

1Q02          -        $  1.5M    $  0.6M      $ 2.1M
2Q02          -           2.3M       0.7M        3.0M
3Q02          -           3.4M       0.7M        4.1M
4Q02          -           4.8M       0.5M        5.3M

FY02          -          12.0M       2.5M       14.5M

1Q03       $ 0.3M         4.9M       0.8M        6.0M
2Q03        10.2M         8.1M       1.1M       19.4M
3Q03        12.6M        13.0M       1.4M       27.0M
<font color=blue>
4Q03(E)     11.5M        13.8M       1.7M       27.0M
4Q03(E)     12.5M        14.8M       1.7M       29.0M
</font>
FY03(E)     34.6M        39.8M       5.0M       79.4M
FY03(E)     35.6M        40.8M       5.0M       81.4M

Business Outlook 

Based on current forecasts from certain partners
and historical and seasonal trends, the Company
anticipates  the following for its fourth fiscal
quarter ending September 30, 2003: 

Net revenues in the range of $27 million to 
$29 million.

OEM appliance revenues between $15.5 and $16.5.

Distribution revenues between $11.5 and $12.5.

Operating expenses between $5.4 million and
$5.7 million.

Gross margins in the range of 19 percent to 
21 percent.

Net income on a GAAP basis in the range of
$200,000 to $500,000, or approximately 
$0.01 per share.

Cash position between $33 million and $35 million. 

networkengines.com

O/S (diluted) - 38.95M shares as of 6/30/03.