NETGEAR announces asset acquisition of CP Secure, Inc.

Company Brief

New Delhi, October 01, 2008

NETGEAR®, Inc. (NASDAQGM: NTGR), a worldwide provider of technologically advanced, branded networking products, has announced the execution of a definitive agreement to acquire the assets of privately-held CP Secure, Inc.

Founded in 2002 and with an established engineering center in Nanjing, China, CP Secure is a leading provider of integrated security solutions that protect organizations from Internet-originated web and email based malware threats. Its CSG family of products delivers network protection, web filtering and email security in an easy-to-deploy, intuitive and feature-rich platform. CP Secure’s patent-pending stream-based scanning technology enables real-time scanning of high-volume web and email traffic without degrading network performance, achieving up to five times better scanning performance than its competitors.

Under the terms of the agreement, NETGEAR will pay $14.0 million in cash for CP Secure’s assets. CP Secure will receive a total additional payout of up to $3.5 million in cash following closure of the acquisition if it achieves certain specified objectives. The acquisition is subject to various standard closing conditions and is expected to close in the fourth quarter. Following completion of the transaction, CP Secure’s Chief Executive Officer, Shuang Ji, will become NETGEAR’s Vice President of Engineering for security products.

“As SMBs increasingly rely on web 2.0 and email applications to conduct business with customers, partners, and vendors alike, SMBs are increasingly seeking effective and easy-to-administer integrated solutions to safeguard their networks and applications from Internet threats and ensure business continuity,” said Patrick Lo, Chairman and CEO of NETGEAR. “CP Secure’s offerings complement our current network security offerings, which include the NETGEAR ProSafe® Wired and Wireless VPN Firewalls and Secure-Socket-Layer (SSL) VPN Concentrator. With an expanded security solution lineup that will incorporate CP Secure’s integrated platform, we can provide organizations with robust, comprehensive, zero-hour protection for their network, web access and email traffic. We also believe that the easy-to-deploy, easy-to-administer and real-time scanning performance features of the CP Secure solution will resonate with our target small and medium business customers.”

”Since its inception, CP Secure has continuously innovated new security products and technologies, such as our patent-pending real-time scanning feature,” said Shuang Ji, CEO of CP Secure. “Today, enterprises and public institutions worldwide such as Philips Intermagnetics and the Oregon Department of Environmental Quality depend on the CP Secure integrated security platform to protect their networks and applications. By leveraging NETGEAR’s leading brand name and global distribution channel and supply chain relationships, we believe we will be able to offer CP Secure’s enterprise-level security features to SMBs who are exposed to the same security threats as enterprises, and can and should expect the same degree of comprehensive network protection.”

Under the terms of the transaction, NETGEAR is acquiring a select team of CP Secure employees, including its Nanjing engineering center with over 40 engineering professionals, its pending patents, proprietary technologies, customer base, current products, and products in development. NETGEAR intends to release a full line of NETGEAR ProSecure™ security appliances for web, email and unified threat management incorporating CP Secure’s platform within the next 12 months. The addition of CP Secure’s seasoned engineering team forms a dedicated, world-class group focused on hardware, software, and technology for network security appliances.

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Alliance Public Relations Pvt.Ltd.

Moumita Dutta

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