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IDC Japan Reports NetScreen Extends Security Appliance Revenue Market Share Leadership in Japan

Maintains #1 Position and Achieves 125 Percent Year-on-year Revenue Growth in 1H 2003

Tokyo - January 6, 2004 - NetScreen Technologies, Inc. (Nasdaq: NSCN) today announced that a report from IDC Japan indicates that NetScreen extended its #1 revenue market share position in both the total security appliance and the firewall/virtual private network (VPN) appliance markets for the first half of 2003 in Japan.

According to the recently released IDC Japan report, titled "Japan Security Appliance Market: 1H 2003 Market Share and 2003-2007 Market Forecasts", NetScreen achieved a 25 percent security appliance revenue market share, which includes revenue estimates from firewall, VPN, intrusion detection and other security categories. NetScreen's market share gain from 2H 2002 to 1H 2003 extended its leadership position. Additionally, the report reveals that NetScreen led the discrete firewall/VPN appliance market in revenue share.

Details of the report also indicate that NetScreen:

  • Achieved year-on-year (1H 2002 to 1H 2003) revenue growth in Japan of 124.8 percent, and is the only vendor among the top three to grow revenue share sequentially from 1H 2002 to 1H 2003 in the total security appliance market.
  • Increased its revenue market share percentage from 13.7 to 28.3 and achieved a unit market share percentage increase from 22.6 to 37.7 in the Japan firewall/VPN appliance market from 1H 2002 to 1H 2003.
  • Is recognized as one of leading intrusion detection solutions vendors, since the launch of its IDP (intrusion detection and prevention) product line approximately one year ago, with 20.7 percent revenue market share in 1H 2003.

"NetScreen has taken a 25 percent revenue market share and compared with the same period last year when they were in third place, they have rocketed into the top spot," explained Masahide Ishii, Server Research Analyst of IDC Japan. "We believe this growth can be attributed to their well-regarded network throughput and the fact that many service providers have selected NetScreen as the equipment provider of choice for their VPN service roll outs."

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

About NetScreen Technologies

NetScreen Technologies, Inc., is a leading developer of network security and access solutions for enterprises and carriers worldwide. NetScreen's solutions offer customers multiple layers of network and application-level protection in purpose-built appliances and systems that optimize performance and reduce total operating costs. NetScreen is located at 805 11th Ave., Sunnyvale, Calif., 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”, “expects”, “provide”, “continue”, and “allows”, 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.