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Japan's NTT-ME Selects NetScreen Security Solutions for Managed Enterprise VPN and VoIP Service Offerings

Sunnyvale, CA - July 8, 2003 - NetScreen Technologies, Inc. (NASDAQ: NSCN) today announced that NTT-ME Corporation, a wholly owned subsidiary of the NTT Group - Japan’s largest telecommunications provider - has selected NetScreen’s integrated firewall and virtual private network (VPN) security solutions to provide secure access and connectivity functions for its nationwide VPN and Voice Over Internet Protocol (VoIP) managed services offerings, “Xephion Internet VPN” and “Xephion Call PRO (VoIP).”

The Xephion service network architecture includes NetScreen-5XP appliances, purpose-built, hardware-based security devices that integrate firewall, VPN and traffic management functionality, deployed at customers’ branch offices and remote sites. The NetScreen-5XP appliances interoperate with other networking equipment in the Xephion network, such as ADSL routers, software applications and a centralized management tool at NTT-ME’s service center, enabling 24x7, secure site-to-site VPN connectivity and access to corporate resources for NTT’s Xephion service customers.

“NetScreen offers one of the few products currently available that provides integrated firewall and VPN and includes support for VoIP capabilities, enabling both security and cost advantages for NTT and its enterprise customers,” said Masatoshi Ito, manager of the ‘WAKWAK’ service department of NTT-ME Corporation at its Xephion business headquarters. “With NetScreen-5XP appliances we are able to provide our Xephion customers the ease and flexibility of adding/updating a VPN device to a new/changed office location with minimal service disruption, as well as the ability to upgrade their existing VPN service to include advanced applications such as VoIP as their businesses evolve.”

Since Xephion’s service rollout in July 2002, NTT-ME has successfully signed up many enterprise customers. In particular, Xephion has been well received by businesses with distributed network environments. One such customer is C’BON, a large cosmetics company in Japan that selected the Xephion Internet VPN service to connect its factory and head office with its health and beauty centers located throughout the country.

“We are pleased to work with NTT-ME to provide a robust and competitive managed security service offering to business customers in Japan,” said David Flynn, vice president of marketing at NetScreen. “Together, we create a win-win proposition, which translates into reduced costs and end-user benefits to Xephion subscribers and high returns to NTT-ME.”

For more information about NetScreen products, visit: http://www.netscreen.com/products/index.jsp

About NTT-ME Corporation

NTT-ME develops its business based on the slogan, “NTT-ME creates the future better, faster, and dependably with broadband.” The company is enhancing community-based service/support systems by partnering with each company within NTT-ME Group, and providing services for the B-to-B-to-C (Business to Business to Consumer) market. “WAKWAK” and “Xephion” are two of the service brands provided by NTT-ME.

About NetScreen Technologies

NetScreen Technologies, Inc., is a leading developer of integrated network security solutions that offer the security, performance and total cost of ownership required by enterprises and carriers. NetScreen’s innovative solutions provide key security technologies, such as virtual private network, denial of service protection, firewall and intrusion prevention, in a line of easy-to-manage security appliances and systems. NetScreen is located at 805 11th Ave., Sunnyvale, CA, 94089. More information on NetScreen’s products can be found at http://www.netscreen.com or by calling toll free at 1-800-638-8296.

NetScreen and the NetScreen logo are trademarks of NetScreen Technologies, Inc. in the United States and other countries. Other trademarks are the property of their respective owners.

This press release contains forward-looking statements about events and circumstances that have not yet occurred. For example, words such as “will”, “can”, “provide”, “enabling” and “continue”, or other statements in the future tense, are forward-looking statements. Actual outcomes and results may differ materially from expectations in this press release due to a number of risks and uncertainties. Such risks and uncertainties include whether the market for security products will grow as projected, if at all, whether demand for NetScreen products will continue, whether new products, if and when introduced, will be successful and whether products will perform as expected.