Network Appliance Joins Microsoft® Settlement Program

Sunnyvale, CA - January 27, 2003 -- Network Appliance, Inc. (NASDAQ: NTAP) announced today that it has signed a communication protocol license agreement with Microsoft under the Microsoft Settlement Program. The license agreement grants Network Appliance access to a broad set of Windows communication protocols. Additionally, NetApp is licensing the set of Windows Media protocols through the Settlement Program. As a result of its participation, Network Appliance advances its ability to deliver leading-edge network storage and data management solutions to its customers for their Windows data storage and information access needs.

As part of the Settlement Program, Microsoft and Network Appliance have identified a set of protocols used by Microsoft Windows operating systems to communicate with the NetApp® data management solutions. The communication protocols covered under this agreement will enable NetApp to provide a higher level of interoperability with both current and future versions of Microsoft Windows. In addition, access to these protocols will enhance the ability of NetApp data management solutions to participate seamlessly in a Windows file sharing, domain, and application environment. Ultimately, Network Appliance's participation in this program will allow customers to maximize the performance of their NetApp data storage solutions within the Windows environment.

"We are pleased to enter into this licensing agreement with Network Appliance through our Settlement Program," said Microsoft Director of Business Development Manager Charlie DeJong. "Making our intellectual property available and accessible to others in the industry is an important priority for the company and this agreement with Network Appliance is one example of how Microsoft shares technical information through licensing."

"Network Appliance is committed to delivering solutions for Windows enterprise storage environments," said Mark Santora, senior vice president of worldwide marketing for Network Appliance. "By working with Microsoft to collaborate on communications protocols, our customers can be confident they are maximizing their Windows investments with a NetApp solution."

Further information regarding the Microsoft Settlement Program can be found at http://www.microsoft.com/legal/protocols. For more information about Network Appliance's participation in the Settlement Program, please visit www.netapp.com.

About Network Appliance

Network Appliance is a world leader in unified network storage solutions for today's data-intensive enterprise. Since its inception in 1992, Network Appliance has delivered technology, product, and partner firsts that continue to drive the evolution of storage. 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
The statement regarding expected shipment dates is a forward-looking statement within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement regarding future events or the future financial performance of Network Appliance Inc. that involves risks or uncertainties. In evaluating the statement, readers should specifically consider various factors that could cause actual events or results to differ materially from those indicated, including without limitation; continuing decline in the general economic conditions, product integration difficulties, manufacturing delays, component shortages, customer demand for the products, and customer acceptance of product architectures, and other important factors as described in Network Appliance, Inc. reports and documents filed from time to time with the Securities and Exchange Commission, including its mostly recently submitted 10-K and 10-Q.

Press Contact:
Jaime Le
Network Appliance, Inc.
(408) 822-3761
jle@netapp.com