NETWORK SYSTEMS INTERNATIONAL, INC.
               ANNOUNCES SALE OF ITS COMMON STOCK

GREENSBORO,  NORTH  CAROLINA:  Monday,  July  10,  2000:  NETWORK
SYSTEMS  INTERNATIONAL,  INC. (NASDAQ:  NESI-news;  www.nesi.net)
announced  today  that it has entered into an agreement  for  the
sale  of  1,666,667 newly issued shares of common stock at  $0.60
per share to seven investors in a private placement organized  by
Millennium  Holdings  Group, Inc.  Network  intends  to  use  the
proceeds  from  the sale of this stock to reduce its  outstanding
indebtedness  to  Wachovia Bank, N.A.  The sale  is  expected  to
close in July.

     During  the  past  nine months, Network  has  experienced  a
substantial   reduction  in  revenues  and  has  suffered   large
operating  losses.  As a result of these two factors, Network  is
in  default  of  its financial loan covenants  contained  in  its
revolving  credit agreement with Wachovia. As stated in Network's
Quarterly  Report  on Form 10-QSB filed with the  Securities  and
Exchange  Commission  on  May 15, 2000: "Until  the  Company  can
renegotiate  its  current revolving credit  agreement  or  secure
refinancing with another lender, the Company's principle  sources
of  liquidity are funds generated by operations.  These  matters,
along  with  the slowdown in software license sales, raise  doubt
about the ability of the Company to continue as a going concern."
Network  has  been  unable to arrange for adequate  financing  to
replace the Wachovia credit facility.  After pursuing a number of
other  alternatives, Network's Board of Directors concluded  that
the  sale  of its stock to the Millennium investors is  the  best
alternative available at this time.

     As  a  condition  to  the sale of stock, four  of  Network's
current  management  shareholders, Robbie M. Efird  (the  current
Chairman of the Board and Chief Executive Officer of Network),
E.W.  "Sonny"  Miller,  Jr.,  David F.  Christian  and  James  W.
Moseley,  have agreed to sell an aggregate of 2,700,000 of  their
shares  of Network stock to Herbert Tabin, a managing partner  of
Millennium, for $1,500,000, or approximately $0.56 per share,  in
a  second private placement arranged by Millennium.  The sale  is
also  conditioned  upon all of the current directors  of  Network
resigning  effective  as  of  the closing  date  in  favor  of  a
representative  of the new investors.   The current  officers  of
Network also plan to resign as of the closing date.

            As  a  condition to completing the sale  of  the  new
shares  to  the  Millennium  investors,  Messrs.  Efird,  Miller,
Christian and Moseley will also grant Network an option, expiring
in  forty-five  days  after the date of the  stock  sale,  giving
Network  the  right  to require the former  management  group  to
purchase  all  of the operating assets of Network's  business  as
currently  conducted for $3,000,000.  During this 45-day  period,
Network  will  determine the value of these assets  and  evaluate
whether  it  is  in  the  best  interests  of  Network  and   its
shareholders  for  Network  to sell  the  assets  to  the  former
management  group at the option price, to sell the  assets  to  a
third  party,  to retain the assets or to take other  appropriate
action.

     If  Network  elects  to  exercise  the  option,  the  former
management  group will make an initial cash payment of $1,500,000
for the assets and will deliver a non-recourse promissory note in
the  principal  amount of $1,500,000, for the remaining  purchase
price.  The note will be secured by the former management group's
remaining 2,925,856 shares of Network stock.  Millennium will use
its  best  efforts  to place the pledged shares  with  accredited
investors on behalf of the former management group for  at  least
$1,500,000,  or  approximately $0.51 per share.  Millennium  will
remit the proceeds generated by the sale of the former management
group's  remaining  shares to Network to  satisfy  the  remaining
balance  of the purchase price for the assets.  If the  remaining
shares are sold for an amount greater than $1,500,000, Millennium
will retain the excess. Of the $3,000,000 paid for the assets, it
is  intended  that $2,000,000 will be used by Network  to  reduce
outstanding  indebtedness to Wachovia under the revolving  credit
arrangement.  If Millennium cannot sell the remaining shares  for
at  least $1,500,000, Network will extinguish the promissory note
at  maturity  and retain the remaining shares in satisfaction  of
the outstanding purchase price for the sale of the assets.

     NETWORK SYSTEMS INTERNATIONAL, INC. is a vertical market
company that specializes in providing industry specific solutions
to the textile, apparel, home furnishings and printing
industries.  The Company's integrated applications provide
customers a complete system for managing the enterprise and
supply chain.  Founded in 1985, NETWORK SYTEMS INTERNATIONAL,
INC. is headquartered in Greensboro, North Carolina with offices
in Dallas, Texas and Duncan, South Carolina.

Safe Harbor Act Disclaimer: This release may contain forward
looking statements that involve risk and uncertainties, including
without limitations, continued acceptance of the Company's
products and services, increased levels of competition, new
products and technological changes, the Company's dependency on
financing third party suppliers and intellectual property rights,
material customers, the Company's business concentration risk
within the textile industry, and other risks.  The Company's
actual consolidated financial results during 2000, and beyond,
could differ materially from those expressed in any forward
looking statements made by, or on behalf of, the Company.

               Network Systems International, Inc.
                          www.nesi.net