NetApp® Networked Storage Growth Outpaces Market in 2006

Sunnyvale, Calif. - March 12, 2007 -- Network Appliance, Inc. (NASDAQ: NTAP) today announced that it continued to gain momentum in the storage area network (SAN) market, while maintaining leadership in both the network-attached storage (NAS) and iSCSI markets in 2006.

According to IDC's Worldwide Quarterly Disk Storage Systems Tracker Q4 20061, NetApp gained share in both capacity 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, from 2005 to 2006. NetApp grew FC SAN revenue at more than seven times the rate of both the market leader and the overall FC SAN market. NetApp grew FC SAN capacity at more than four times the rate of the overall market and at almost five times the rate of the market leader. Q4'06 marks the twelfth consecutive quarter that NetApp grew FC SAN revenue faster than the market.

NetApp also demonstrated continued leadership in the NAS and iSCSI storage markets in the fourth quarter. At year end 2006, NetApp maintained the number-one market share position in capacity shipped for NAS (38.9%) and in iSCSI for both capacity shipped (30.4%) and revenue (23.6%).

In the networked 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 102.3%, while the market grew at 63.7%. NetApp advanced to the number two position in capacity shipped in the networked storage market. In terms of revenue, NetApp grew at 20.3%, while the market grew at 14.0%.

"Our growth momentum in the FC SAN market in 2006 and continued leadership in iSCSI and NAS demonstrate that data center customers find real value in our products and services," said Elisa Steele, vice president of Corporate Marketing at Network Appliance. "Our data center solutions help our customers deliver outstanding business results every day with maximized productivity, increased availability, and reduced costs."

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 Q4 2006

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

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