Sunnyvale, CA - June 23, 2006 - Network Appliance, Inc. (NASDAQ:NTAP), the leader in advanced networked storage solutions, today announced that it has entered into a definitive agreement to sell its NetCache™ business to Blue Coat Systems. NetApp® is committed to a smooth, seamless transition for existing NetCache customers. NetApp will continue to provide existing customers support for their NetCache appliances for the duration of their support contracts, and will honor existing NetCache customer commitments. NetApp considers the transaction to be immaterial to expectations for its business going forward.

"NetCache and the content delivery business have been a unique and effective sales, marketing, and technology asset to help us grow to a $2 billion dollar company, and we are proud of the team for the work they have accomplished," said Jay Kidd, senior vice president and general manager of NetApp Emerging Products Group. "This divestiture allows us to sharpen our focus on data management solutions and services for the enterprise data center. Over the long term, our NetCache customers will be better served working with a supplier who has a broader offering in the content delivery market and a strategic commitment to the Internet access, security, and proxy market."

The transaction is expected to close within 90 days of announcement, subject to customary closing conditions.

After the close, NetApp NetCache employees will either be offered positions at Blue Coat Systems or will be deployed on other development programs or in new roles within NetApp.

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 the anticipated benefits to be obtained from the Company's transition of NetCache and the content delivery business to Blue Coat Systems, expectations regarding how the transition will impact NetCache customers, the benefits that NetCache customers can expect from Blue Coat after the closing of the transaction, the expected timing of the completion of the transition and the impact that this transaction will have on our future financial results. These forward-looking statements involve risks and uncertainties, and actual results may vary significantly. Factors that could impact our ability to achieve our goals include the risk that we may not be able to consummate the transaction, the risk that some NetCache customers may not react positively to our sale of the NetCache business, the risk that the transaction could negatively impact our sales to customers in our core businesses 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. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or otherwise.

NetApp is a registered trademark and Network Appliance and NetCache are trademarks of Network Appliance, Inc. in the U.S. and other countries. Blue Coat is a registered trademark of Blue Coat Systems. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.

Press Contacts:
Dave Black
Voce Communications
650-228-5163
dblack@vocecomm.com

Investor Contacts:
Tara Calhoun
Network Appliance, Inc.
(408) 822-6909
tara@netapp.com