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IDC Japan Security Appliance Market Report: NetScreen Achieves No. 1 in Unit and Revenue Market Share 2H 2002

Sunnyvale, CA - September 24, 2003 - NetScreen Technologies, Inc. (NASDAQ: NSCN) today announced that a report from IDC Japan, titled “Japan Security Appliance Market - 2H 2002 Market Share and 2002-2007 Market Forecasts”, reveals that NetScreen achieved the No.1 unit and revenue market share position in both the security appliance and the firewall / virtual private network (VPN) markets in Japan for the second half of 2002.

Details of the report indicate that NetScreen:

  • Moved into the No.1 position with an estimated 23.3 percent revenue market share -and 34.6 percent unit market share in the second half of 2002 for the overall security appliance market in Japan (which includes firewall, VPN, intrusion detection and other security categories).
  • Achieved a revenue market share percentage increase from 14.6 to 24.0 and a unit market share percentage increase from 25.4 to 35.3 in the firewall / VPN market from the first half to the second half of 2002.

The report also indicates that users are becoming more aware of the benefits of purpose-built, hardware-based security appliances with dedicated operating systems and forecasts increased adoption of these types of solutions, such as those offered by NetScreen.

“NetScreen has made significant increases in revenue and unit market share in Japan,” said Masahide Ishii, Server Research Analyst of IDC Japan. “NetScreen’s easy-to-use, purpose-built hardware-based architecture offers effective security and cost advantages without jeopardizing network performance - compelling benefits for end customers in Japan.”

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 networks, 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 Avenue, 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.