Network Appliance Acquires Topio

SUNNYVALE, Calif. - November 8, 2006 -- Network Appliance, Inc. (NASDAQ: NTAP) today announced that it has entered into a definitive agreement to acquire Topio, a privately held Santa Clara, California-based company with R&D in Haifa, Israel, for approximately $160 million in an all-cash transaction. Topio, a NetApp Strategic Partner, is highly regarded for its innovative software that helps customers replicate, recover, and protect data over any distance regardless of the underlying server or storage infrastructure. The combination of Topio software and NetApp® proven data management solutions will enable enterprises to safely, reliably, and nondisruptively replicate their production data on any vendor system-including EMC, HP, or HDS-to any NetApp storage system.

The joint capabilities of Topio and NetApp deliver a broad range of solutions spanning data protection, data migration, and data cloning. In addition to providing customers with all the benefits that come with the renowned unified architecture from NetApp, the joint solution is especially compelling in two user scenarios. First, customers with production storage not from NetApp can nondisruptively replicate data to a NetApp system and take full advantage of rapid, storage-free data cloning using NetApp FlexClone™ technology, which provides near-instantaneous creation of multiple clones of data without additional storage requirements. Second, customers with mixed legacy storage environments can unify their disaster recovery (DR) environment on reliable and cost-effective NetApp tiered storage platforms and put the DR copy to active business use.

Jay Kidd, senior vice president and general manager, Emerging Products group, Network Appliance, said, "The average enterprise creates and stores anywhere between 10 and 20 copies of its data, including testing and application development data, which can increase the amount of storage consumed by 10 to 20 times. This is both expensive and time consuming. With the addition of Topio, enterprises using legacy storage systems can create working data copies in seconds while dramatically decreasing overall storage requirements. This not only provides immediate cost savings, but also allows companies to accelerate their application test and development to bring their products to market much more quickly."

The heterogeneous capabilities of Topio Software also enable users to consolidate all of their DR data onto a single, reliable, and scalable NetApp platform and use this DR copy for such business applications as testing and reporting. This empowers customers to implement a simplified, tiered DR infrastructure for greater operational efficiencies and lower total cost of ownership. Customers can now extend DR protection to more of their enterprise data using less of their IT budgets.

For Network Appliance, the acquisition continues to expand the NetApp heterogeneous data protection portfolio. Topio adds heterogeneous DR capabilities to existing heterogeneous disk-to-disk backup solutions from NetApp, which include NearStore VTL™ for heterogeneous data center backup, Open Systems SnapVault® for remote office backup, and SnapVault® for NetBackup™, a solution jointly engineered with Symantec and highly optimized for NetBackup in any storage environment.

Topio will also help enable NetApp to build on its momentum of increasing footprint in the data center with Fibre Channel SAN by helping accelerate migration of customers using legacy storage systems onto NetApp SAN storage systems.

The acquisition is expected to close in December 2006, subject to customary closing conditions. Topio will be a new business unit within NetApp, and its research and development team will continue to operate in Haifa, Israel. Topio is committed to maintaining and furthering its deep relationships with global enterprise customers.

About Topio
Topio (
www.topio.com) provides enterprise-class software for data replication and rapid recovery across the spectrum of locations, platforms and storage that support an enterprise. Worldwide, companies of all sizes depend on Topio for DR, backup consolidation and data migration and continuous data sharing. Topio is headquartered in Santa Clara, California and brings its solutions to market through a combination of global partners.

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 to 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 the anticipated benefits to be obtained from the Company's acquisition of Topio and the expected timing of the completion of the acquisition. These forward-looking statements involve risks and uncertainties, and actual results could vary. Factors that could impact our ability to achieve our goals include our ability to successfully integrate Topio operations and products with the future success of both companies product lines, 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 CONTACT:
Dave Black
Voce Communications for Network Appliance, Inc.
Ph: (408) 822-3287
dblack@vocecomm.com

xdl-uspr@netapp.com

INVESTOR CONTACT:
Tara Dhillon
Network Appliance, Inc.
Ph: (408) 822-6909
tara@netapp.com