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Market Research Report Shows NetScreen Leads Top Competitors in Security Appliance Market Share Gain and Revenue Growth

SUNNYVALE, CA - October 28, 2003 - NetScreen Technologies, Inc. (NASDAQ: NSCN) today announced that an IDC report, entitled “Worldwide Quarterly Security Appliance Server Tracker*”, reveals that NetScreen gained 6.9 percentage points in factory revenue market share between Q2 2002 and Q2 2003, while the four other largest vendors all experienced market share declines over this period. NetScreen achieved these gains based on a year-over-year quarterly factory revenue growth of 92 percent.

According to the report in the second quarter of 2003, NetScreen achieved 16 percent factory revenue market share, up from 9.1 percent the same quarter in the previous year, and factory revenue of approximately $53.2 million - an increase of approximately $25.5 million year over year. IDC’s categorization of the security appliance market includes VPN/Firewall, intrusion detection and other security categories.

“In a tough economic environment, NetScreen was the only leading vendor to achieve double digit revenue growth allowing the Company to gain approximately 7 percentage points in market share,” said David Flynn, NetScreen vice president of marketing. “These results demonstrate NetScreen’s momentum in the global marketplace and customers’ recognition of the value of NetScreen’s easy-to-use, purpose-built hardware-based appliances and systems that offer effective security and clear cost advantages.”

For Western Europe, NetScreen was shown to have the fastest growth of any major vendor with 146.8 percent year-over-year factory revenue growth in the second quarter of 2003. The IDC report also shows that NetScreen was the only top vendor to achieve positive sequential factory revenue growth in Western Europe between Q1 and Q2 of 2003.

* Source: IDC’s Worldwide Quarterly Security Server Appliance Tracker, Q2 2003

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, ScreenOS 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”, “expects”, “enables”, “influencing”, “believes”, “planned,”“continue” and “continuing”, 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, but are not limited to 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 whether new products will be available within announced timeframes and whether products will perform as expected.