NetApp Entered Into $400 Million Accelerated Stock Repurchase Plan

After market close on August 19, 2011, NetApp, Inc. entered into a collared accelerated share repurchase agreement (the ASR Contract) with Wells Fargo Bank, National Association, under which the company will repurchase approximately $400,000,000 of its shares of common stock, the final number of shares subject to adjustment described below. The company will acquire these common shares under the existing share repurchase program authorized by its Board of Directors.

Pursuant to the ASR Contract, the company paid $400,000,000 to Wells Fargo on August 22, 2011. Shares will be delivered to the company over the term of the ASR Contract, which is expected to end no later than December 30, 2011, although the completion date may be accelerated at Wells Fargo’s option.

The exact number of shares to be repurchased generally will be determined by the average of the daily volume weighted average prices of shares traded during the term of the agreement, subject to collar provisions that will establish minimum and maximum numbers of shares to be repurchased. The actual number of shares repurchased will be determined at the completion of the ASR Contract.

The ASR Contract contains the principal terms and provisions governing the accelerated share repurchase, including, but not limited to, the mechanism used to determine the number of shares that will be delivered, the required timing of delivery of the shares, the circumstances under which Wells Fargo is permitted to make adjustments to valuation periods and various acknowledgements, representations and warranties made by the company and Wells Fargo to one another.