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NetScreen Unveils Initiative to Expand Medium Enterprise Market Focus

New Programs and Products Drive Penetration Into Fast-Growing Segment

Sunnyvale, CA - February 2, 2004 - NetScreen Technologies, Inc. (Nasdaq: NSCN) today announced an initiative to expand its focus on the medium enterprise market segment. The initiative, which builds on the success NetScreen has already realized with large enterprises and service providers, includes new channel programs, branding efforts and products designed to meet specific medium enterprise customer requirements.

Industry research indicates that the medium enterprise, generally defined as companies with 100 to 1,000 employees, is expected to grow rapidly in the next several years.

“Security continues to lead the list of IT priorities among medium enterprises and we are projecting IT security spending by medium enterprises to increase at a compounded annual growth rate (CAGR) of 33 percent over the next five years,” said Anil Miglani, analyst with AMI-Partners, Inc., a firm specializing in small- and medium-enterprise market research. “With almost two-thirds of these customers expressing a desire to source their solutions from the channel, it is imperative for any manufacturer who is serious about serving this market to have products that meet these customers’ needs along with a comprehensive channel strategy and programs.”

New Channel Programs and Branding

NetScreen is launching channel programs that include education, training and tools to help channel partners build sales momentum in the medium enterprise market. These new sales and technical training offerings are designed to help channel partners serve the needs of medium enterprise customers who often lack in-house technical expertise and, therefore, may rely heavily on channel partners to design, implement and support their security solutions. New offerings include online sales training coursework and certification for partner sales professionals as well as a new medium enterprise solutions technical education module for NetScreen Certified Security Associate (NCSA) engineers to ensure this important resource is up to speed on the latest medium enterprise solutions.

All of the new channel offerings, among other tools and resources designed for creating business opportunities in the medium enterprise market, can be accessed via a new Medium Enterprise Business Center on NetScreen’s partner Website. Further, to aid its channel partners’ sales and marketing efforts, NetScreen has launched an extensive print advertising campaign to be executed worldwide in multiple IT trade publications targeting medium enterprises.

New Products Optimized for the Medium Enterprise

NetScreen also has made available a new set of entry-level products that offer simplified functionality to specifically address the security and price/performance requirements of medium enterprises. The new Baseline versions of the NetScreen-25, -50, -204, -208 and -500 devices, expand NetScreen’s range of products from which channel partners can create cost-effective solutions for medium enterprise customers.

The Baseline devices include stateful firewall, IPSec virtual private network (VPN), Denial of Service protection and traffic management functionality, as well as High Availability capabilities that provide reliability for medium enterprise customers. Other recent enhancements to the NetScreen product line, such as setup “wizards” and rapid deployment templates, can reduce the need for pre-staging or for “technical expertise” at the point of installation and can substantially reduce the time required to install the devices.

In addition, the recently announced NetScreen-5GT Extended (see related press release titled: “NetScreen Delivers New Solutions for Telecommuter and Remote Office Environments”) is well suited to address medium enterprise needs with security functionality, resiliency and rapid deployment features similar to NetScreen’s new Baseline offerings.

Since accommodating future growth is important for medium enterprises, the entry-level Baseline products are upgradeable, via purchase of a software key, to include the full complement of features and networking capabilities available for the particular product series.

“I’m really pleased to see NetScreen expand its focus on the medium enterprise segment,” said Richard Tear of CSCI in San Diego, a NetScreen channel partner that primarily services medium and small enterprises. “The feature-set and flexibility of the new solutions will help us meet the needs of more medium enterprise customers and help us deliver services more economically. It’s refreshing that a product manufacturer understands the nature of how we do business with medium enterprises and gives us the programs and tools to support it.”

“With the help of our channel partners, NetScreen has built its reputation and realized great success in the large enterprise and carrier as well as some medium enterprise environments,” said David Flynn, vice president of marketing at NetScreen. “Increasingly, our channel partners are driving adoption of our solutions in the medium enterprise segment and we believe that our global branding campaign, along with all the other components of this initiative, can help them build more momentum and demonstrate our commitment to this market and our channel partners’ success.”

Availability

New Baseline versions of the NetScreen-25, -50, -204, -208 and -500 appliances running NetScreen ScreenOS version 5.0, the most recent edition of NetScreen’s custom operating system, are available now.

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”, “can”, “provides”, “enabling”, “designed”, “allows” and “continues”, 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.