Network Appliance Receives State Grant to Expand in RTP
Research Triangle Park, North Carolina -
July 27, 2004 -- Network Appliance, Inc. (NASDAQ: NTAP), the
leader in advanced networked storage solutions for today's
data-intensive enterprise, today announced that it has received a
Job Development Investment Grant (JDIG) from the state of North
Carolina. At a press conference at the state capital in Raleigh,
North Carolina, today, Governor Mike Easley and Network Appliance
president Tom Mendoza announced the joint agreement before an
audience of local and state officials, business leaders, members of
the Economic Investment Committee, and the media.
"We are delighted that the Economic Investment Committee of North
Carolina has chosen us for the JDIG grant," said Mendoza. "Our
company has been in the RTP area since 1999, and this grant will
enable us to continue to build and develop strong local ties with
our business partners and customers and reap the benefits of a
highly talented workforce in North Carolina."
"As a result of targeted, performance-based initiatives such as
JDIG, North Carolina is leading the nation in job growth," said
Easley. "Companies such as Network Appliance are choosing to locate
and expand in North Carolina because our of business-friendly
climate, low tax burden as well as our superior educational system
Under the terms of the agreement, authorized unanimously this
morning by the state Economic Investment Committee, chaired by
Commerce Secretary Jim Fain, a 10-year grant will be established.
Over the life of the grant, the North Carolina Department of
Commerce estimates the project will:
- Generate a cumulative gross state product
value of about $2.5 billion.
- Produce a positive cumulative net state
revenue impact of $99 million.
- Contribute nearly $3 million to the state's
Industrial Development Fund for infrastructure improvements in
rural North Carolina. This contribution is required of grant
recipients that locate in a tier 5 urban county.
For each year Network Appliance meets the
required performance targets, the state will provide a grant equal
to 65% of the state personal income withholding taxes derived from
the creation of new jobs. If Network Appliance creates the jobs
called for under the agreement and sustains them for 10 years, the
agreement could yield maximum benefits to the company of as much as
$8.9 million over the life of the grant.
As part of the grant, Network Appliance will be investing $59
million over five years in people, land, buildings, and capital
As part of the company's expansion effort, Network Appliance will
be purchasing three buildings from Cisco Systems, Inc. in RTP,
located at 7301 Kit Creek Road. The space is 520,000 square feet
and could eventually accommodate more than 2,000 employees.
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 www.netapp.com.
"Safe Harbor" Statement under U.S. Private
Securities Litigation Reform Act of 1995 Statements regarding
performance targets, five-year investment targets, and building
expansion purchases contain forward-looking statements within the
meeting of the Private Securities Litigation Reform Act of 1995.
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 which meet market acceptance; our ability to design
products which 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 Form 10-K and any subsequent Forms 10-Q or
Network Appliance, Inc.