NetApp #1 in Storage Capacity Shipped According to Industry Analyst Report

NetApp #1 in Storage Capacity Shipped According to Industry Analyst Report
Company Gains Share in Capacity Shipped in Networked Storage, NAS, SAN, and iSCSI Markets

Sunnyvale, Calif. - September 5, 2006 -- Network Appliance, Inc. (NASDAQ: NTAP) today announced that it has gained capacity share in all of its key storage markets in the second calendar quarter of 2006. According to IDC's Worldwide Quarterly Disk Storage Systems Tracker Q2 2006,1 NetApp® led the networked storage market in capacity share, growing to 21%, which is a statistical tie with EMC. NetApp also grew faster than the market in capacity shipped in networked storage, growing at 111% year over year while the market grew at 59%. In terms of revenue, NetApp grew faster than the market from Q2 2005 to Q2 2006 at 21% while the market grew at 11%.

Of all the vendors tracked by IDC in Fibre Channel (FC) SAN, NetApp continues to grow faster than the market in both revenue and capacity, sequentially and year over year. For capacity shipped, NetApp grew at 240% year over year while the market grew at 47%. Sequentially, NetApp grew at 56% while the market grew at 11%. In terms of revenue, NetApp grew at 66% year over year while the market grew at 8%. Sequentially, NetApp grew at 18% while the market grew at 2%.

NetApp demonstrated continued leadership in the iSCSI market in terms of revenue and capacity in both Q2 2006 and the first half of 2006, with first-place market share for Q2 2006 in capacity shipped (44%) and in revenue (28%). From Q2 2005 to Q2 2006, the iSCSI market grew at 152% year over year in terms of capacity shipped while NetApp grew at 199%. Sequentially, NetApp grew at 39% while the market grew at 31%.

In its core NAS market, NetApp was number one in Q2 2006 for capacity shipped, with 47% market share. NetApp grew faster than the market in terms of capacity, both sequentially and year over year. Year over year, the NAS market grew 77% in terms of capacity shipped while NetApp grew 85%. Sequentially, the NAS market grew at 11.3% while NetApp grew at 13.5%.

"Our leadership position in networked storage capacity share, coupled with continued growth in all of our key markets, demonstrates that the NetApp value proposition is aligned with enterprise customers' business demands," said Patrick Rogers, vice president of Products and Partners at Network Appliance. "We look forward to continuing to deliver compelling customer value through proven business solutions."

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 simplify data management. 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
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. reports and documents filed from time to time with the Securities and Exchange Commission, including our most recently submitted 10-K and 10-Q.

1IDC's Worldwide Quarterly Disk Storage Systems Tracker Q2 2006.

Press Contact:
Jodi Baumann
Network Appliance, Inc.
(408) 822-3974
Jodi.Baumann@netapp.com

PR Hotline
Voce Communications, Inc.
(408) 822-3287
xdl-uspr@netapp.com