Network Appliance Leads NAS and Unified Storage Market

Sunnyvale, Calif. - March 23, 2005 - Network Appliance, Inc. (NASDAQ: NTAP) today announced it has extended its position in the NAS and unified storage market. According to Gartner's report "Market Share: Network-Attached and Unified Storage, Worldwide, 4Q04,"(1) the total NAS and unified storage market grew 20.3% in 2004. NetApp grew more quickly than the market, posting annual revenue growth of 25.4%. According to Gartner, the company increased its market share from 50% in 2003 to 52% in 2004.

Also according to Gartner's "1Q05 Update: Global RAID Disk Storage Forecast, 2004-2007,"(2) NetApp produced the largest growth rate among the top-tier vendors in the external controller-based disk storage market in 2004, with a revenue increase of 25.6%. NetApp® external controller-based disk storage hardware revenue increased from $586.9M in 2003 to $737.1M in 2004. As a whole, the external controller-based disk storage market grew 5.1% in 2004.

"NetApp customers continue to depend on us to deliver innovative, flexible, and cost-effective storage solutions to simplify complex IT environments and dramatically reduce total cost of ownership," said Patrick Rogers, vice president of Products and Partners at Network Appliance. "We believe our ability to work with customers to create storage solutions that maximize their investments and simultaneously support Fibre Channel SAN, IP SAN (iSCSI), and network-attached storage sets NetApp apart in the storage market. As storage technology and customer needs evolve, NetApp will continue to be at the forefront by collaborating with customers to expand our product portfolio."

NetApp was successful in penetrating the mission-critical and database markets. The company's unified storage systems, supported by the same operating system and software products, have proved to simplify storage management over direct-attached and conventional SAN-attached storage.

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

(1) Gartner Dataquest, "Market Share: NAS & Unified Storage, Worldwide, Q404," Pushan Rinnen, 2005.
(2) Gartner Dataquest, "Global RAID Disk Storage Forecast, 2004-2007," R. W. Cox, 2005.

"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 market and market share trends that benefit the Company, continued customer acceptance and adoption rates of the Company's solutions. 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 that meet market acceptance; our ability to design products that 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 10-K and 10-Q.

Press Contacts:
Jodi Baumann
Network Appliance
(408) 822-3974