EXHIBIT 99.1

FOR IMMEDIATE RELEASE                  For more information contact:

                                       David Brunton, Chief Financial Officer
                                       SBE, Inc.
                                       (925) 355-7700
                                       davidb@sbei.com


         SBE Announces Agreement to Raise $5,150,000 in Equity Financing

San  Ramon,  CA - May 5,  2005  -- SBE  Inc.,  (NASDAQ:  SBEI),  a  provider  of
high-performance OEM communications and storage solutions,  today announced that
it has  executed  a  definitive  agreement  to  raise  $5,150,000  in a  private
placement  of common  stock  and  warrants  with  individual  and  institutional
accredited investors. The financing is intended to enable SBE to further develop
and  commercialize  the iSCSI software  solutions of PyX  Technologies,  Inc. On
March 28, 2005,  SBE  announced it had signed a definitive  merger  agreement to
acquire PyX  Technologies,  Inc., a privately-held  company  specializing in the
development of iSCSI software solutions.

Under the  financing  agreement,  SBE will issue  shares of its common stock and
warrants  in units  comprised  of one  share of common  stock  and a warrant  to
purchase 0.5 share of common stock. The price per unit will be the lowest of (a)
$2.50,  (b) 92% of the average  closing  sale price of SBE's common stock over a
five-day  period  preceding the closing and (c) 95% of the closing sale price of
SBE's  common  preceding  the  closing.  SBE will  not  obligated  to close  the
financing if the price per share is below $2.00.  The warrants  will have a term
of five years and have an exercise price equal to 133% of the unit price,  which
is subject to downward adjustment if SBE makes certain issuances of common stock
below the exercise price during the term of the warrants.

SBE expects to complete the  financing in its third fiscal  quarter,  concurrent
with its acquisition of PyX,  subject to satisfaction of closing  conditions set
forth in the financing agreements.  In addition to customary closing conditions,
the financing is subject to the approval of SBE's  stockholders  and  contingent
upon the closing of the PyX acquisition.

About SBE

SBE architects 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. For additional information, please visit www.sbei.com.

Required statement under Rule 14a-12 under the Securities Act of 1934:

In  connection  with the  proposed  acquisition  of PyX  Technologies,  Inc. and
financing,  SBE 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  TRANSACTIONS,  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 TRANSACTIONS.
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
transactions. Certain executive officers and directors of SBE may 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.

SBE and the SBE logo are  registered  trademarks of SBE, Inc. All other brand or
product  names are  trademarks  or  registered  trademarks  of their  respective
holders.