NETAPP ANNOUNCES RESULTS FOR FOURTH QUARTER AND FISCAL YEAR 2008

Q4 Revenues $938 Million, Up 17% Year over Year; Forecasts 23% – 27% Year over Year Revenue Growth for Q1 FY2009

SUNNYVALE, Calif. – May 21, 2008 -- NetApp (NASDAQ: NTAP), today reported results for the fourth quarter of fiscal year 2008. Revenues for the fourth fiscal quarter were $938 million, an increase of 17% compared to revenues of $801 million for the same period a year ago and an increase of 6% compared to $884 million in the prior quarter. For the fourth fiscal quarter, GAAP net income was $90 million, or $0.26 per share1 compared to GAAP net income of $90 million, or $0.23 per share for the same period in the prior year. Non-GAAP2 net income for the fourth fiscal quarter was $131 million, or $0.38 per share, compared to non-GAAP net income of $114 million, or $0.30 per share for the same period a year ago.Revenues for fiscal year 2008 totaled $3.3 billion, an increase of 18% compared to revenues of $2.8 billion for fiscal year 2007.

For fiscal year 2008, GAAP net income increased 4% to $310 million, or $0.86 per share, compared to GAAP net income of $298 million, or $0.77 per share for fiscal year 2007. Non-GAAP net income for fiscal year 2008 increased 6% to $455 million, or $1.26 per share, compared to non-GAAP net income of $431 million, or $1.11 per share for fiscal year 2007. “NetApp posted a strong finish to the fiscal year, ending the fourth quarter with 17% growth in revenue and 23% growth in storage systems,” said Dan Warmenhoven chairman and chief executive officer.

“With solid performance from most areas around the world, customers continue to validate that NetApp provides them with comprehensive storage and data management solutions at the lowest cost of ownership in the industry.”Outlook NetApp estimates revenue for the first quarter of fiscal year 2009 to be between $845 million and $875 million.NetApp estimates that the first quarter fiscal year 2009 GAAP earnings per share will be approximately $0.09 to $0.13 per share. NetApp estimates first quarter fiscal year 2009 non-GAAP earnings per share to be approximately $0.20 to $0.23 per share. As presented at their analyst day in March 2008, NetApp reiterates estimated revenue for the full fiscal year to be between $3.79 billion and $3.95 billion.

As presented at their analyst day in March 2008, NetApp reiterates estimated GAAP earnings per share for the full fiscal year to be approximately $0.92 to $0.98 per share and non-GAAP earnings per share to be approximately $1.40 to $1.46 per share. Quarterly HighlightsIn the fourth quarter of fiscal year 2008, NetApp launched a new brand identity that makes a bold statement about NetApp's strength in the marketplace and is designed to drive greater understanding of NetApp.

NetApp also continued to help customers transform their data center architectures through higher efficiencies and asset utilization, greater power, space savings, and innovative data center design and data management techniques. During the fourth quarter, NetApp unveiled the NetApp® Kilo Client, a large testing environment that is designed to exceed the most scalable and extreme performance conditions that most enterprises experience in their data centers. Also during the quarter, NetApp introduced new products and capabilities as part of the NetApp Manageability Software Family.

These new products (SnapManager® for Virtual Infrastructure, SnapManager Compatibility with VMware® Virtualization Software, and Provisioning Manager) enable customers to transform their data center architectures. NetApp is providing customers a proven storage platform for virtualized environments to achieve increased service levels, higher asset utilization, and greater data center power, space, and cooling efficiencies.

NetApp was recognized for its green initiatives with three separate awards for its innovative data center design and its advanced data management techniques to reduce power consumption. IDG's Computerworld, the "Voice of IT Management," selected NetApp as one of the top Green-IT Companies for 2008. IDG's InfoWorld, the leading integrated media brand for IT decision makers, named NetApp a winner in InfoWorld’s inaugural Green 15 awards.

NetApp was also named a winner of the prestigious 2008 Green Enterprise IT Award from the Uptime Institute, a leading research-based think-tank and corporate advisory on the business and technology issues related to critical computing environment reliability and energy efficiency. NetApp continued to gain momentum in the storage software market, growing the fastest among the top five leading storage software providers in 2007.

According to IDC's Worldwide Quarterly Storage Software Tracker Q4 20073, NetApp grew more than three times faster than the storage software market in 2007 and gained share in each market segment in which it provides offerings. This marks the fifth consecutive year that NetApp grew faster than both the storage software market and the market leader.

During this quarter, Gartner, Inc., positioned NetApp in the "Leaders" quadrant for Enterprise NAS. In a recently released research note, "Magic Quadrant for Midrange and High-End NAS Solutions, 1H08,"4 Gartner asserts, "An enterprise NAS storage vendor in the Leaders quadrant has the market share, credibility, and marketing and sales capabilities needed to drive the acceptance of new technologies. It demonstrates understanding of market needs, is an innovator and thought leader, and has well-articulated plans that customers and prospects can use when designing their storage infrastructures and strategies."

NetApp unveiled a new brand identity and changed the official name of the company from Network Appliance to NetApp. The new brand identity was designed to achieve a broader and deeper awareness of the company and to communicate a consistent promise on a global basis to customers, partners, and employees.

The NetApp brand is strongly grounded in NetApp's "create a model company" spirit which is based on the core values of the company, including trust and integrity, leadership, simplicity, teamwork and synergy, and going beyond.