Netxen and Inventec Enter Strategic Relationship

Partnership and investment deal strengthens NetXen's ability to address the volume server market

Taipei, Taiwan and Santa Clara, Calif., October 31, 2006 - NetXen Inc., the leader in 10-Gigabit Ethernet (10GbE) Intelligent NIC^® technology, and Inventec Corp. (IEC), the world's largest server ODM, today announced that IEC has made a strategic investment in NetXen. Terms of the investment were not disclosed. Additionally, Inventec Enterprise Systems Corporation (IESC), a wholly owned subsidiary of IEC, has entered into a manufacturing and supply chain partnership with NetXen to deliver advanced 10GbE solutions for the volume server market.

The partnership will leverage the industry-leading capabilities of each firm in the design, development and manufacturing of high-performance chip- and board-level solutions for 10GbE enterprise networking. The agreement gives NetXen the ability to leverage Inventec's design and technology leadership in the server industry to bring innovative 10GbE products to market faster and more cost-efficiently, with the highest levels of quality.

"The strategic relationship between Inventec and NetXen enhances our ability to capitalize on the growth opportunities that lie ahead as datacenters transition to next-generation 10-Gigabit technology," said NJ Lee, president of IESC. "We believe that the time for 10-Gig is now, and that NetXen's innovative Intelligent NIC products deliver unprecedented capabilities that will help lead the next wave of mainstream server deployments."

Govind Kizhepat, NetXen's founder and CEO, commented, "The alliance we've formed with Inventec gives us an important competitive edge in the 10-Gigabit Ethernet NIC market. The strategic and economic benefits derived through this partnership will enhance our ability to deliver the economical solutions, high-volume capacity and quality levels that are critically important to our tier-one server OEM customers."

About Inventec Corp. (IEC)
Inventec Corp. (IEC) is the world's largest ODM company producing servers (1). From its headquarters in Taiwan, IEC has expanded its operations to Asia, Europe and North America. The company's manufacturing operations provide full support for board and system assembly, including CTO/BTO capabilities. Since 2003, IEC has continually invested in new and emerging technologies while producing quality products that remain at the forefront of innovation.

About Inventec Enterprise Systems Corp. (IESC)
Inventec Enterprise Systems Corp. (IESC) is a 100% owned subsidiary of Inventec Corporation. IESC acts as a total enterprise business solution provider with leading capabilities in designing, developing, and worldwide deployment of servers, blades, storage, and management software. For further product information, visit www.inventecesc.com or email sales@inventecesc.com.

About NetXen, Inc.
NetXen, Inc. is a privately-held company that manufactures intelligent 10-Gigabit Ethernet networking chips that advance enterprise datacenter performance and agility. Founded in February 2002 by chip design veteran Govind Kizhepat, the company is headquartered in Santa Clara, Calif., with an office in Pune, India. NetXen's protocol- and OS-agnostic Intelligent NICs are designed for volume 10-Gigabit deployments and are targeted at server, storage, security and networking systems. Additional information about the company and its patented chip architecture is available at www.netxen.com.

(1) Market Intelligence Center (18 Nov 2005) "Taiwanese Server Manufacturer Volume Ranking, Q103-Q305."

NetXen, the NetXen logo and Intelligent NIC are trademarks of NetXen, Inc. All other trademarks are the property of their respective holders.

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