Market Research Shows NetApp® SAN Momentum

Sunnyvale, Calif. - December 1, 2006 -- Network Appliance, Inc. (NASDAQ: NTAP) today announced that it continued to gain momentum in the storage area network (SAN) market, while maintaining strong leadership in both the network-attached storage (NAS) and iSCSI markets in the third calendar quarter of 2006.

According to IDC's Worldwide Quarterly Disk Storage Systems Tracker Q3 2006, NetApp gained share in both capacity shipped and revenue for the Fibre Channel (FC) SAN market. NetApp continued to grow faster than the market in FC SAN in both revenue and capacity, year over year. For capacity shipped, NetApp grew at 210.2%, while the market grew at 46.3%. In terms of revenue, NetApp grew faster than the market for the 11th consecutive quarter at 62.1%, while the market grew at 14.1%. Sequentially, NetApp grew at 16.0%, while the market grew at 6.4%.

NetApp also demonstrated continued leadership in the NAS and iSCSI storage markets in the third quarter. NetApp maintained the number-one market share positions in capacity shipped for NAS (42.0%) and in iSCSI for both capacity shipped (32.6%) and revenue (21.5%).

In the network storage market (which includes SAN, NAS, and iSCSI), NetApp grew faster than the market, year over year, in both capacity shipped and revenue. For capacity shipped, NetApp grew at 106.8%, while the market grew at 62.6%. In terms of revenue, NetApp grew 18.9%, while the market grew at 17.2%.

"Every quarter, IDC's market research continues to show NetApp gaining momentum in SAN faster than the market, while continuously maintaining strong leadership positions in both NAS and iSCSI," said Elisa Steele, vice president of Worldwide Integrated Marketing at Network Appliance. "Our overall leadership and momentum in the market demonstrate the value NetApp is delivering to customers across all segments of our business."

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.

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

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