THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Network Equipment Technologies, Inc. (NWK)

6/30/2006 Proxy Information

In October 2005, the Company entered into a license and development agreement with a third party technology supplier, under which the Company agreed to pay $3 million as a license acquisition fee (of which $2.4 million was paid in fiscal 2006), and will pay an ongoing royalty for use of the licensed technology. Mr. Keating is a member of the Board of Directors of the supplier. The transaction was reviewed by a special committee of independent Directors, and was approved by the Board in executive session, which Mr. Keating did not attend.

7/1/2005 Proxy Information

No related party transactions or special relationships reported for this company. Director relationships marked "Outside Related" at this firm will most often be former executives of the company. Additional information regarding these relationships will be added during our regular updates.

7/12/2004 Proxy Information

During Fiscal Year 2004, the Compay paid $60,000, plus travel and other expenses, to DESS GmbH & Co. KG, a German Limited Partnership in which Thomas Rambold is CEO, for consulting services related to sales opportunities in Germany. Mr. Rambold will receive amounts paid to DESS.

7/14/2003 Proxy Information

Compensation Committee Interlocks and Insider Participation

With the exception of Mr. Keating, no member of our Compensation Committee was at any time during Fiscal Year 2003, or any other time, an officer or employee of the Company. Mr. Keating served as an officer of the Company from 1987 to 1993, and served as a member of the Compensation Committee from January 15, 2002 until June 28, 2002. No executive officer of the Company serves as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving as a member of the Company's Board of Directors or Compensation Committee.