EXHIBIT 99.1                                            Contact: Elaine Chin
                                                                 SBE, Inc.
                                                                 (925) 355-7604
                                                                 ychin@sbei.com


                 SBE and PyX Technologies Sign Merger Agreement


SAN RAMON, CA -- March 28, 2005 -- SBE, Inc. (NASDAQ: SBEI), a leading provider
of high-performance OEM communications solutions, today announced that it has
signed a definitive merger agreement to acquire PyX Technologies, Inc., a
privately-held company specializing in the development of iSCSI software
solutions.

iSCSI is Internet Small Computer System Interface, an Internet Protocol
(IP)-based storage networking standard for linking data storage systems,
developed by the Internet Engineering Task Force. By carrying SCSI commands over
IP networks, iSCSI software is used to facilitate data transfers over intranets
and to manage storage over long distances. The iSCSI protocol is among the key
technologies expected to help bring about rapid evolution of the storage area
network (SAN) market, by increasing the capabilities and performance of storage
data transmission. Because of the ubiquity of IP networks, iSCSI can be used to
transmit data over local area networks, wide area networks or the Internet and
can enable location-independent data storage and retrieval.

PyX Technologies, based in San Ramon, CA, provides storage OEMs with an
enterprise-level IP storage solution that is standards-based, fault-tolerant and
cost-efficient. PyX's iSCSI solutions deliver a software protocol that
transports data to and from networked storage with error recovery and multi-path
capabilities previously only available in costly Fibre Channel architectures.
PyX's iSCSI products are capable of interfacing with SATA, SCSI, Fibre Channel,
PATA and other storage devices.

SBE and PyX formed a technology alliance in May 2004 to provide a joint iSCSI
storage management solution coupling SBE's dual port Gigabit Ethernet TCP/IP
Offload Engine (TOE) board with PyX's fault-tolerant, high availability iSCSI
software. "While our alliance with PyX has yielded positive demand and sales
activity for our bundled iSCSI and TOE products, we believe the merger allows us
to accelerate our progress and better serve this burgeoning marketplace with
fully-integrated, enterprise-quality iSCSI packages," commented Dan Grey,
President and Chief Executive Officer of SBE.

 "We believe that acquiring PyX Technologies will help propel SBE into the
forefront of IP storage innovation and enable us to secure a strong foothold as



the dominant player in the iSCSI SAN arena. We intend to leverage the R&D that
PyX has invested in developing its iSCSI Target and Initiator products, and use
that established technology as a platform from which to build next generation IP
storage solutions, including support for 10-Gigabit Ethernet, encryption,
acceleration and PCI Express," continued Grey.

SBE expects to complete the acquisition in its third fiscal quarter, subject to
satisfaction of closing conditions set forth in the merger agreement. In
addition to customary closing conditions, the transaction is subject to the
approval of SBE's shareholders and contingent upon raising additional capital
concurrent with the closing of the merger.

About SBE

SBE designs 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. More information is available about SBE at www.sbei.com.


Required statement under Rule 14a-12 under the Securities Act of 1934:
In connection with the proposed transaction, SBE, Inc. intends to file a proxy
statement and other relevant materials with the Securities and Exchange
Commission ("SEC"). BEFORE MAKING ANY VOTING DECISION WITH RESPECT TO THE
PROPOSED TRANSACTION, INVESTORS AND STOCKHOLDERS OF SBE ARE URGED TO READ THE
PROXY STATEMENT AND OTHER RELEVANT MATERIALS BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION. The proxy statement and other
relevant materials, and any other documents filed by SBE with the SEC, may be
obtained free of charge at the SEC's web site at www.sec.gov. In addition,
investors and stockholders of SBE may obtain free copies of the documents filed
with the SEC by contacting the Chief Financial Officer of SBE at (925) 355-7700
or by writing to the Chief Financial Officer at SBE, Inc., 2305 Camino Ramon,
Suite 200, San Ramon, CA 94583. You may also read and copy any reports,
statements, and other information filed by SBE with the SEC at the SEC public
reference room at 450 Fifth Street, NW, Room 1200, Washington, D.C. 20549.
Please call the SEC at (800) SEC-0330 or visit the SEC's web site for further
information on its public reference room.

SBE and its executive officers and directors may be deemed to be participants in
the solicitation of proxies from the SBE stockholders in favor of the proposed
transaction. Certain executive officers and directors of SBE have interests in
the proposed transaction that may differ from the interests of stockholders
generally. These interests, if any, will be described in the proxy statement
when it becomes available.

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