San Ramon, CA — March 1, 2005 — SBE Inc., (NASDAQ: SBEI), and Xalyo Systems today announced their agreement enabling SBE to provide its OEM customers with OC-3 interfaces supporting ATM and Internet Protocol (IP) services bundled in cost-effective board-level packages.

“This technology alliance with Xalyo Systems completes our existing family of wide area networking (WAN) adapters. Adding this series of ATM adapters, supporting data rates from T1/E1 to OC-12, opens new markets and applications for existing customers,” commented Steve Nester, vice president of business development at SBE. “In addition, these cards will allow us to satisfy the growing demand to provide a bridge between fixed, time-based circuits (ATM and T1/E1) and packet-based (IP) networks. Offering this gateway/bridge functionality on a PTMC is simply unmatched in the industry today,” concluded Nester.

SBE and Xalyo will have available today a series of modules, consisting of the following boards:

XS-1000: Single port OC-3/STM-1 ATM and Packet over SONET (POS) with Gigabit Ethernet on a PTMC module

XS-155: Quad port OC-3 / STM-1 ATM and POS interface supporting an aggregate throughput up to OC-12 rates

XS-TDM: Quad port T1/E1/J1 PTMC supporting Inverse Multiplexing over ATM (IMA)

Ideal for serving business critical applications such as wireless networking, voice over packet, TDM over Ethernet, media signaling gateways, Internet access, and video streaming, these high-end ATM/POS solutions utilize Wintegra’s WinPath Network Processor to manage the data path, and an on-board 64-bit MIPS processor to run advanced protocols, i.e. 3GPP, SS7, ATM, VoIP. Designed to offer port-to-port termination, switching, and interworking capabilities, each of these modules is based on a common architecture that addresses the bottleneck in current systems by handling all of the processing on-board and performing segmentation and reassembly locally. This feature not only offloads the CPU on the carrier board, but also optimizes bus transfers while conducting termination.

“The architecture of these OC-3 and IP interfaces allows us to deliver a level of flexibility and performance that is virtually impossible to achieve on conventional designs,” stated Andre Wiesel, founder and president of Xalyo Systems. “Our design incites increased throughput and more reliable data rates, which ultimately means better quality of service for customers.”

An open application programming interface (API) is provided on the PCI bus, thus enabling customers to plug and play these solutions on virtually any platform, processor, and operating system. Linux and VxWorks driver support also available.

Availability and Pricing

The XS-1000, XS-155, and XS-TDM boards are available now. AMC versions of these modules are currently in development and will be released in the near future. Pricing varies based on OEM quantities. Please contact the SBE sales team at 925-355-2000 for pricing details and additional product information.

About SBE

SBE architects and provides network communications solutions for an extensive range of applied computing applications. SBE offers a robust portfolio of standards-based WAN, LAN, Storage network interface cards (NICs) as well as communications controllers designed to enable optimal performance and rapid deployment across a full spectrum of next generation networking systems. Based in San Ramon, California, SBE is a publicly traded company (NASDAQ: SBEI) with products sold worldwide through direct sales, OEMs and system integration partners. For additional information, please visit www.sbei.com.

About Xalyo Systems

Xalyo Systems engineers and provides advanced, commercial off-the-shelf ATM and IP interfaces. Designed for demanding applications such as wireless networking, video streaming, and Internet access, Xalyo’s products offer performance and features satisfying today’s market needs, at an affordable price. For additional information, please visit www.xalyo.com.

For more information, contact:

SBE, Inc.
Elaine Chin, (925) 355-7604
ychin@sbei.com