New Xframe II Doubles Network Efficiency, Enables Server Virtualization and Consolidation

Cupertino, CA — January 24, 2005 — Today Neterion Inc. (formerly S2io Inc.), the industry leader in the emerging 10 Gigabit Ethernet adapter market, announced Xframe II®, a new adapter based on the improved bus architecture PCI-X 2.0 that doubles the data rate delivered by the earlier bus standard, PCI-X 1.0.

"With this announcement, we have just doubled the value proposition of 10 Gigabit Ethernet," said Dave Zabrowski, Neterion's President & CEO. "Boosting the network performance while preserving their investment in Ethernet is very attractive to data center managers, who are faced with exponentially increasing bandwidth needs. Customers can implement a 10 Gigabit Ethernet solution in hours, and immediately reap the benefits of higher performance. Neterion is the first to offer a product with the double data rate bus, and deliver the full speed of 10 Gigabit-per-second."

Systems equipped with the PCI-X 2.0 bus are expected to be introduced throughout 2005, as server vendors continue to help end-users in their server virtualization and consolidation strategies.

"This is a very savvy move on the part of Neterion," noted Vernon Turner, Group Vice President and General Manager of Enterprise Computing at IDC. "They are providing OEMs with an easily integrated product that delivers true 10 Gigabit Ethernet performance for high-end server and storage applications. And they have done this without requiring the vendors to make any changes to their existing Operating Systems or to break the TCP/IP stack."

Neterion will be making additional product and customer announcements throughout 2005.

About Neterion, Inc.
Founded in 2001, Neterion Inc. has locations in Cupertino, California and Ottawa, Canada. Neterion delivers 10 Gigabit Ethernet hardware & software solutions that enable OEMs to solve their customers' high-end networking problems. The company's line of Xframe® products is based on Neterion-developed technologies that deliver new levels of performance, availability and reliability in the datacenter. Xframe and Xframe II include full IPv4 and IPv6 support, and comprehensive stateless offloads that preserve the integrity of current TCP/IP implementations without "breaking the stack." Xframe drivers are available for all major Operating Systems, including Microsoft Windows, Linux, Hewlett-Packard's HP-UX, IBM's AIX, Sun's Solaris and SGI's Irix. Formerly known as S2io, the company changed its name to Neterion in January 2005.

Further information on the company can be found at http://www.neterion.com/

About Xframe II
In addition to the better performing bus interface, Xframe II benefits include ease-of-design and implementation by reusing many of the same technologies introduced by Neterion's first product. Xframe II also adds new features including the exclusive technology called "Large Receive Offload" to remove bottlenecks on the receive side. Xframe II maintains hardware and software compatibility with the previous generation product.

About PCI-X 2.0
Defined by the PCI-SIG® standard organization, PCI-X 2.0 is the next generation PCI bus. It builds upon previous generations of PCI including the electricals, protocols, signals names and functions, connectors, etc., and maintains backward compatibility with conventional PCI.

The Neterion, Xframe, Xframe II names and logos and combinations thereof, are trademarks of Neterion, Inc. Other names are for informational purposes only and may be trademarks of their respective owners.

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