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NetApp Reports Preliminary Q1

SUNNYVALE, Calif. -- Network Appliance, Inc. (NASDAQ:NTAP), the leader in advanced networked storage solutions, today announced preliminary results for the first quarter of FY2008. Revenues are expected to be in the range of $684 to $688 million, down approximately 14% to 15% sequentially from the fourth quarter of FY2007 and up approximately 10% to 11% over the same quarter one year ago. GAAP net income per share is expected to be in the range of $0.08 to $0.09 and non-GAAP1 net income per share is expected to be in the range of $0.19 to $0.20.

These preliminary results are below the companys previously stated targets issued on May 23, 2007 for a sequential revenue decrease of 6% to 7%, which equates to approximately $745 to $753 million in revenue, and for GAAP net income per share of $0.14 and $0.15, and non-GAAP net income per share of $0.24 to $0.25. Network Appliance will host a conference call this afternoon to discuss these preliminary results. The final results of the first quarter of fiscal year 2008 will be announced on August 15, 2007, after the close of market.

"We are disappointed with our Q1 results. We believe our performance was impacted by some continued softness in enterprise storage spending, most notably in our existing customer accounts in the U.S. and parts of Europe," said Dan Warmenhoven, CEO of Network Appliance. "However, these same enterprise customers who have slowed their spending tell us that our value proposition remains the best in the industry and we did not see any decline in our competitive win rates."

Network Appliance Inc.