Contact:

Sarah Beene Sue Hetzel

Network Hardware Resale HetzelMeade Communications
201.984.1478 760.434.9927
sarah@networkhardware.com sue@hetzelmeade.com

Network Hardware Resale Sustains Record of Impressive Annual Revenue Growth

with Strong Year-over-Year Results as Secondary Equipment Market Booms

Market Leader’s Sales Increase 28 Percent Thanks to Expanding International Presence

and Exemplary Responsiveness to Customers’ Needs

Santa Barbara, Calif. ─ February 11, 2008 ─ Network Hardware Resale (NHR), the
leading provider of pre-owned and new networking equipment, today announced
another year of record growth, reinforced by a continuing expansion into new and
existing international markets. Revenues for 2007 were $176.7 million, surpassing the
projected goal of $170 million and representing 28 percent year-over-year growth.

NHR’s stellar financial performance also contributed to positive EBITDA for the 32nd
consecutive quarter. The company continues to lead the secondary market for pre-
owned networking equipment, including routers, switches, access servers and IP
telephony equipment from leading manufacturers such as Cisco, Extreme, Foundry and
Juniper. As an alternate source for refurbished network gear, NHR continues to gain
customer traction with its standard one-year warranty, stellar support, adoption of
industry best practices as well as savings of up to 90 percent off OEM list prices.

In 2007, NHR opened its Asia-Pacific headquarters in Singapore, resulting in a growth

spurt of 166 percent in that market and 34 percent throughout the region. At the same
time, NHR achieved sustainable market momentum in historically strong markets,
including the United States, the Netherlands, Germany, France and the United Kingdom
and enters 2008 with solid growth indicators in emerging markets including Mexico,
Eastern Europe, Middle East, Malaysia and India. More than 10,000 customers
worldwide rely on NHR for the rapid delivery of refurbished, new-surplus and new
gear to meet a wide range of production network, disaster recovery as well as testing
and sparing requirements.

According to Mike Sheldon, president and CEO of NHR, the company’s impressive
record of sustained growth is fueled by its expanding global reach, extensive product
inventory and constant focus on service. “Many people assume that success in the
secondary market requires only low prices, but responsiveness, flexibility and service set
NHR apart as a single, trusted source for a wide range of networking needs,” he says.

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“That’s why we inventory an average of $100 million in legacy and current products for
same-day order fulfillment while investing in industry certifications for sales and
technical staff.”

Last month, NHR extended its customer support capabilities by unveiling an innovative
maintenance alternative that provides substantial savings over traditional OEM
contracts. The new service, called NetSure™, provides around-the-clock support by a
team of Cisco-certified technicians for customized coverage of network core as well as
distribution and access layers. In related news, NHR also announced that its entire
global sales force has passed the Cisco Sales Expert exam, resulting in full CSE
certification to ensure the highest levels of proficient, responsive service and support.

All these success factors were supported solidly by a poll of 400 NHR customers
surveyed in late 2007. Nearly 90 percent of the respondents cited responsiveness, rapid
equipment delivery, product availability and savings over OEM pricing as the main
factors that drove their NHR purchases. Nearly 80 percent use gear purchased from
NHR in production network environments while making purchases from NHR up to 10
times a year. Nearly 40 percent of the respondents expressed interest in finding more
affordable, flexible technical services for remote offices and edge routers.

About Network Hardware Resale

Network Hardware Resale (NHR) is a leading provider of high-performance, pre-owned
Cisco, Extreme and Juniper networking equipment. The company also is an authorized
reseller of resilient, massively scalable networking gear from Force10 Networks.
Founded in 1986, the Santa Barbara, Calif.-based organization has been recognized by
Inc. Magazine as one of the fastest growing private companies in the United States for
four consecutive years. NHR provides global sales and technical support from its
California, New York City metro, Amsterdam and Singapore locations. More than 10,000
organizations worldwide purchase quality networking equipment from NHR, including
Global 1000 companies, small and mid-sized enterprises, government entities,
educational institutions, healthcare organizations and telecommunications service
providers. For more information, visit www.networkhardware.com.

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