Gov. Easley Announces 361 New Jobs for the Triangle

Raleigh, North Carolina - July 27, 2004 -- Gov. Mike Easley announced today that Network Appliance, Inc. will expand its operations in the Triangle, bringing 361 new jobs and $59 million in additional investment to the area. Network Appliance, a world-leading data storage provider, is the 15th recipient of an award under the new state Job Development Investment Grant (JDIG) program.

"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 and infrastructure."

Since its inception in 1992, Network Appliance (NASDAQ: NTAP) has been a pioneer in the development of electronic data storage systems and technologies. NetApp® storage solutions include specialized hardware, software and services, providing seamless storage management for open network environments. Major corporations and service providers include Bank of America, Citicorp Securities, Krispy Kreme, Lockheed, Merrill Lynch, Oracle, Red Hat, SAS, Texas Instruments and Yahoo! With headquarters in Sunnyvale, California, Network employs 2,800 employees worldwide. Network Appliance currently has offices in Durham and employs more than 150 people in sales, customer support and research and development.

Network Appliance anticipates purchasing three shell buildings owned by Cisco Systems in the Research Triangle Park and should initiate incremental hiring later this year. The jobs, which will primarily focus on research and development, will also include sales and customer support positions. The average salary for the positions is projected to be at least $115,000.

"We are delighted that the Economic Investment Committee of North Carolina has chosen us for the JDIG grant," said Tom Mendoza, president of Network Appliance. "Our company has been in the RTP area since 1999. "This grant will enable us to undertake this project and 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."

Network Appliance has a strong working relationship with N.C. State University and participates in the University "ePartners" program. For the past two-and-one-half years, Network has been a "Super ePartner", the highest level of corporate involvement. "ePartners" support the University's computer science department financially and undertake collaborative work with faculty and students.

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 N.C. 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 in which the company meets the required performance targets, the state will provide a grant equal to 65 percent of the state personal income withholding taxes derived from the creation of new jobs. If the company 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.

The Job Development Investment Grant initiative, proposed by Easley in 2002, awards up to 25 grants annually to strategically important new and expanding businesses and industrial projects. These grants are only awarded to projects whose benefits exceed their costs to the state and which would not be undertaken in North Carolina without the grant. Cumulative annual grant amounts are capped at $15 million.

Since 2003, JDIG is responsible for bringing $660 million in investment and nearly 6,000 jobs to North Carolina.

Contact:

Lauren Mims
919.733.5612