Network Appliance Achieves Milestone of 10,000 SAN Production Deployments

Sunnyvale, Calif. - October 3, 2006 -- Network Appliance, Inc. (NASDAQ: NTAP), today announced another milestone with 10,000 production deployments of NetApp® storage area network (SAN) solutions, including 3,000 FC SANs and 7,000 IP SANs. NetApp is one of the fastest growing enterprise SAN solutions providers, with the industry's best cost-of-ownership savings. The NetApp SAN growth is the result of its innovative solutions, which enable the easiest provisioning and management, affordable business continuity, and nondisruptive backups with instant data recovery in all data center environments-central, departmental, and distributed.

According to IDC's Storage Tracker1 for Q2 2006, NetApp continues to grow faster than the market in both FC SAN revenue and capacity. For capacity shipped, NetApp grew at 240% year over year, while the market grew at 47%. In terms of revenue, NetApp grew at 66% year over year, while the market grew at 8%.

IDC's Tracker also shows that NetApp continues to hold its first-place position in the iSCSI market in terms of revenue and capacity in both Q2 2006 and the first half of 2006, with 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%.

"The SAN market is now a significant part of NetApp business, both for Fibre Channel and IP , thanks to our compelling SAN value proposition," said Joel Reich, general manager of the SAN Business Unit at Network Appliance. "Enterprise customers are deploying NetApp SAN to easily consolidate storage, maximize data availability, and implement effective backup and recovery solutions with world-class service and support."

"NetApp continues to expand its portfolio of Fibre Channel SAN solutions aimed at the data center," said Brad Nisbet, program manager, Storage Systems, IDC. "The company's rapid growth in this area is an indicator that the NetApp message of simplifying management and ease of use is resonating with customers."

NetApp FC SAN enterprise-class infrastructure capabilities achieve massive scalability with minimal complexity. NetApp FC SAN solutions help customers adapt to changing data center needs, achieve superior data management, and experience the lowest TCO. This is made possible through instantaneous FC SAN provisioning and data recovery; leading 4Gb performance and support; tight integration with director, switch, and host bus adapter (HBA) products from Brocade, Cisco, Emulex, McData, and QLogic; SAN attach kits for host and OS support; and a comprehensive interoperability matrix that provides support for all major open systems computing platforms. For more information and technical details about NetApp FC SAN solutions, go to www.netapp.com/products/fcsan.html.

NetApp IP SAN solutions provide a compelling and affordable SAN environment for application servers running Microsoft® Windows®, Linux®, VMware, Novell NetWare, Sun™ Solaris™, IBM AIX, and HP/UX environments. Software iSCSI initiators from the OS vendors are supported, as well as iSCSI HBAs and TOE cards from QLogic and Alacritech. iSCSI is supported by the NetApp FAS200, FAS3000, FAS900, FAS6000, V-Series, and NearStore® storage systems.

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.

1 IDC Worldwide Quarterly Disk Storage Systems Tracker, August 2006.

Press Contact:
Jaime Leigh Le
Network Appliance, Inc.
(408) 822-3761
jle@netapp.com