NetApp® Receives Second State Grant to Expand in RTP

Research Triangle Park, N.C. - May 8, 2007 -- Network Appliance, Inc. (NASDAQ: NTAP), a leader in advanced networked storage solutions, today announced it has received a second Job Development Investment Grant (JDIG) from the State of North Carolina to expand its operations in Research Triangle Park. The new JDIG award requires NetApp to maintain its more than 600 local jobs and add 646 more by the end of 2010. These new jobs will pay an average salary of more than $94,000 a year plus benefits.

"We are very pleased to be working with Governor Easley and the State of North Carolina on another JDIG," said Tom Mendoza, president of Network Appliance. "NetApp initially selected RTP as a primary location because it offers a technology-rich business climate, the availability of a talented and highly educated workforce, affordable housing, and top educational and research facilities. Growth in the RTP region will further enable NetApp to expand our development capabilities and enhance our customer service and support."

"North Carolina enjoys a growing reputation as a leader in information and communications technology thanks to successful, top-quality companies such as Network Appliance. This sector employs more than 142,000 people in our state with a total payroll of $10 million," Easley said. "These are sustainable, skilled, well-paying jobs that will carry our economy forward."

Under the terms of the agreement authorized unanimously this morning by the state Economic Investment Committee, chaired by Commerce Secretary Jim Fain, a 10-year grant will be established. Over the life of the grant, the North Carolina Department of Commerce estimates the project will:

  • Generate a cumulative gross state product value of just under $971 million
  • Produce a positive cumulative net state revenue impact of $20 million
  • Contribute nearly $5.1 million to the state's Industrial Development Fund for infrastructure improvements in rural North Carolina; this contribution is required of grant recipients that locate in a Tier 3 urban county

For each year in which the company meets the required performance targets, the state will provide a grant equal to 65% of the state personal income withholding taxes derived from the creation of new jobs. If the company creates the jobs called for under the agreement and sustains them for 10 years, the agreement could yield maximum benefits to the company of as much as $15.3 million over the life of the grant.

As part of the company's expansion effort, NetApp will also be building a new state-of-the-art data center on its existing property to handle the move of more research and development in the RTP region.

NetApp has been established in RTP since 1999 and received a prior JDIG award in 2004 when it purchased three shell buildings owned by Cisco Systems in Research Triangle Park to expand its research and development operations. At the time, NetApp had around 150 workers at the RTP site and promised to hire an additional 361 employees by the end of 2009. Currently, NetApp has more than 600 workers at its RTP facilities.

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
Statements regarding performance targets, five-year investment targets, and building expansion purchases contain forward-looking statements within the meeting of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including projected hiring plans, 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 Form 10-K and any subsequent Forms 10-Q or 8-K.

Press Contact:
Jodi Baumann
Network Appliance, Inc.
Ph: (415) 407-0013
jodi@netapp.com

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