EXHIBIT 99.2

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For more information contact:
Renee Reyes                                          Christopher Bunn
Public Relations                                     Investor Relations
Cobalt Networks                                      Cobalt Networks
650/623-2500                                         650/623-2500
renee@cobalt.com                                     cbunn@cobalt.com
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              Cobalt Networks Completes Acquisition of Chili!Soft

MOUNTAIN VIEW, Calif. - May 24, 2000 - Cobalt Networks, Inc. (NASDAQ: COBT), a
leading provider of server appliances, today announced it has completed the
acquisition of Chili!Soft, Inc., a provider of software solutions for platform-
independent Active Server Pages (ASP), the Microsoft-led standard for the rapid
development and deployment of interactive Web applications.

Cobalt acquired 100 percent of the outstanding stock and rights to purchase
stock of Chili!Soft for 1.15 million shares of common stock.  Cobalt expects to
account for the transaction as a purchase.

About Cobalt Networks, Inc.
Cobalt Networks is a developer of server appliances that enable organizations to
establish an online presence easily, cost-effectively, and reliably.  Cobalt's
product lines -- the Cobalt Qube, Cobalt Cache, Cobalt RaQ, and Cobalt NASRaQ --
are used as Internet and Web hosting server appliances by businesses, Internet
Service Providers, and educational institutions.  Cobalt's solutions are
delivered through a global network of distributors, value-added resellers and
ISPs.  Founded in 1996, Cobalt Networks, Inc. (http://www.cobalt.com) is located
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in Mountain View, California - the heart of Silicon Valley - with international
offices in Germany, Japan, the United Kingdom, and the Netherlands.

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(C)2000 Cobalt Networks, Inc., the Cobalt logo, Cobalt Networks, Cube, Cobalt
Qube, Cobalt RaQ, RaQ, Cobalt CacheRaQ and Cobalt NASRaQ, and Cobalt StaQware
are trademarks of Cobalt Networks, Inc. Other product names are trademarks or
registered trademarks of their respective owners.

Certain of the statements in this press release, including the statements
relating to expectations about the market for Cobalt's products and suitability
of those products for the ISP, ASP and small to medium business markets, are
forward-looking statements that are subject to risks and uncertainties that
could cause results to be materially different than expectations. Such risks and
uncertainties include, but are not limited to, risks associated with sales of
the Company's Cobalt RaQ products. Investors are advised to read Cobalt's annual
report on Form 10-K for the year ended December 31, 1999 and its other filings
with the Securities and Exchange Commission for a further discussion of such
risks and uncertainties as well as the other uncertainties and risks Cobalt
faces.