Sunnyvale, CA. - June 2, 2006 -- Network Appliance, Inc. (NASDAQ: NTAP) today announced that it has gained revenue and capacity share in all of its key storage markets in the first calendar quarter of 2006. According to IDC's Worldwide Quarterly Disk Storage Systems Tracker Q1 2006,¹ NetApp gained revenue share in the networked storage market, growing to a 9.6% share in Q1 2006, up from an 8.5% share at year-end 2005. NetApp also gained capacity share in networked storage, growing to 19.5% from 15.8% in the same period.

In Fibre Channel (FC) SAN, NetApp continues to grow faster than the market in both revenue and capacity, both sequentially and year over year. This is the ninth sequential quarter in which NetApp has grown faster than the FC SAN market in revenue. Sequentially, FC SAN market revenue dropped 12.9%, while NetApp grew 17.4%. Year over year, the FC SAN market revenue grew 14.8%, while NetApp grew 60.2%.

In its core NAS market, NetApp grew faster than the market in terms of both revenue and capacity, both sequentially and year over year. Sequentially, the NAS market revenue dropped 1.5%, while NetApp grew 7.3%. Year over year, the NAS market revenue grew 14.7%, while NetApp grew 17.8%. NetApp continues to lead the NAS market in terms of capacity, with a 45.8% share in Q1 2006, up from a 42.6% share at year-end 2005.

NetApp demonstrated continued leadership in the iSCSI market in terms of revenue and capacity, with first-place market share for Q1 2006 in capacity shipped (40.0%) and in revenue (29.7%). In Q1 2006, the iSCSI market revenue dropped 7.2% sequentially, while NetApp grew 10.0%.

"Our increasing revenue and capacity share in all our key markets demonstrates the value NetApp brings to data center environments," said Patrick Rogers, vice president of Products and Partners at Network Appliance. "We look forward to continuing to provide our customers with data center proven solutions that simplify complex IT environments and dramatically reduce their total cost of ownership."

About Network Appliance
Network Appliance is a world leader in unified storage solutions for today's data-intensive enterprise. Since its inception in 1992, Network Appliance has delivered technology, product, and partner firsts that simplify data management. Information about Network Appliance™ solutions and services is available at www.netapp.com.

"Safe Harbor" Statement under U.S. Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include market and market share trends that benefit the Company, continued customer acceptance and adoption rates of the Company's solutions. These forward-looking statements involve risks and uncertainties, and actual results could vary. Factors that could impact our ability to achieve our goals include general economic and industry conditions, including expenditure trends for storage-related products; our ability to deliver new product architectures and products that meet market acceptance; our ability to design products that compete effectively from a price and performance perspective; and other important factors as described in Network Appliance, Inc.'s reports and documents filed from time to time with the Securities and Exchange Commission, including our most recently submitted 10-K and 10-Q.

¹IDC's Worldwide Quarterly Disk Storage Systems Tracker Q1 2006.

Press Contact:
Jodi Baumann
Network Appliance, Inc.
(408) 822-3974
Jodi.Baumann@netapp.com

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