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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 KIGCe0wSxxQXUy3VIK4jvQXhE9o8mlfOAuuOLeD+aJw+17anP9XPt1fG0H5ska/6
 cbhQtnAn1PDDvxvXbeQLCg==

<SEC-DOCUMENT>0001181431-07-075619.txt : 20071214
<SEC-HEADER>0001181431-07-075619.hdr.sgml : 20071214
<ACCEPTANCE-DATETIME>20071214145423
ACCESSION NUMBER:		0001181431-07-075619
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20071213
FILED AS OF DATE:		20071214
DATE AS OF CHANGE:		20071214

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Kelly Hugh
		CENTRAL INDEX KEY:			0001367625

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-30863
		FILM NUMBER:		071307100

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		781-332-1000

	MAIL ADDRESS:	
		STREET 1:		25 DAN RD
		CITY:			CANTON
		STATE:			MA
		ZIP:			02021

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NETWORK ENGINES INC
		CENTRAL INDEX KEY:			0001110903
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				043064173
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	BUSINESS ADDRESS:	
		STREET 1:		25 DAN ROAD
		CITY:			CANTON
		STATE:			MA
		ZIP:			02021
		BUSINESS PHONE:		7813321000

	MAIL ADDRESS:	
		STREET 1:		25 DAN ROAD
		CITY:			CANTON
		STATE:			MA
		ZIP:			02021
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd182642.xml
<DESCRIPTION>KELLY OPTION REFRESH
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-12-13</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001110903</issuerCik>
        <issuerName>NETWORK ENGINES INC</issuerName>
        <issuerTradingSymbol>NENG</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001367625</rptOwnerCik>
            <rptOwnerName>Kelly Hugh</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>25 DAN RD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>CANTON</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>02021</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>VP of Worldwide Marketing</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Employee Stock Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.59</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-12-13</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>50000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>1.59</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2017-12-13</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>50000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>50000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Employee stock option award of 50,000 shares. The option vests in equal quarterly increments over four years and expires in ten years.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Hugh Kelly</signatureName>
        <signatureDate>2007-12-14</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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