Network Appliance Announces Derivative Lawsuit

Sunnyvale, Calif. - October 26, 2006 -- Network Appliance, Inc. (NASDAQ: NTAP), today announced that a shareholder derivative lawsuit has been filed against the Company. The suit alleges improper practices relating to the timing of stock option granting. Management believes the lawsuit to be completely frivolous and without merit.

As NetApp previously disclosed, the Company conducted a thorough review of its options granting process and found no evidence of any backdating of stock option grants. The review was conducted over a year ago, prior to the recent wave of investigations of other public companies related to options issuance practices. The NetApp review was performed in consultation with an external accounting firm and the Company's independent auditors, specifically looking at the period from fiscal year 1994 through fiscal year 2005.

Management is confident that the record will support the Company's determination that no backdating of stock options occurred.

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.

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

Investor Contacts:
Tara Calhoun
Network Appliance, Inc.
Ph: (408) 822-6909
tara@netapp.com

Billie Fagenstrom
Network Appliance, Inc.
Ph: (408) 822-6428
billief@netapp.com