Network Appliance Demonstrates Continued Market Growth

Sunnyvale, Calif. - June 4, 2004 -- Network Appliance, Inc. (NASDAQ: NTAP), today demonstrated its rapid market share growth in the disk storage systems market, posting strong revenue in the worldwide networked storage market (Network-attached storage [NAS] plus Open and iSCSI SAN) with sequential quarterly growth of 8.1%. According to IDC's Worldwide Quarterly Disk Storage Systems Tracker, year over year the company grew revenue in the worldwide networked storage market 22.3% versus the market growth of 17.5%.

According to IDC, NetApp maintained a strong lead in the iSCSI storage market for first quarter 2004 (1Q04), with 48.4% of the market of the iSCSI disk storage systems market, as measured by market share in factory revenue and 65.2% of the market in terabytes shipped. In its core NAS market, NetApp demonstrated leadership in NAS hardware for 1Q04 in both revenue and terabytes shipped.* The company posted a 35.1% revenue market share with a 14.4% increase in revenue year over year (vs. CY03Q1) and a 7.0% increase sequentially (vs. CY03Q4). The overall NAS market grew 1.9% sequentially, demonstrating NetApp outpacing the industry on a sequential basis.

The results validate the early leadership position Network Appliance carved by offering iSCSI protocol support on its storage systems and the company's continued focus to broaden its overall market reach and execute a winning storage strategy that solves customer challenges in storage consolidation, business continuance, data protection, disaster recovery, and archive and reference needs.

"Our continued growth in key market segments combined with our recent earnings announcement in which NetApp reported total revenue growth of 39.5% year over year demonstrates the NetApp drive to provide customers with new and innovative systems platforms, storage technologies and software," said Patrick Rogers, vice president of Marketing at Network Appliance. "As evidenced by IDC's market figures, customers continue to demand simple, scalable and affordable technology for their networked storage requirements and are turning to NetApp, the iSCSI pioneer, to help them realize the real-world benefits of IP storage. By focusing on our customers' needs and ultimately their successes, NetApp will continue to gain market share and partner with our customers to provide complete networked storage solutions."

iSCSI is particularly appealing for distributed storage environments where price and performance are top-of-mind concerns. Based on standard IP protocols, iSCSI systems are simple and economical to deploy. iSCSI solutions enable IT managers to consolidate and centralize storage management of widespread storage pools in workgroup and/or departmental configurations and to enjoy the benefits of networked storage in the broader reaches of today's data-intensive enterprise.

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 continue to drive "The evolution of storage.™" Information about Network Appliance™ solutions and services is available at

*According to IDC's Worldwide Quarterly Disk Storage Systems Tracker, Network Appliance was in a statistical tie for the number-one position in overall NAS revenue in 1Q2004.

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