NETGEAR Completes Asset Acquisition of CP Secure

SAN JOSE, Calif.- NETGEAR®, Inc. (NASDAQGM: NTGR), a worldwide provider of technologically advanced, branded networking solutions, today announced that it has completed the asset acquisition of CP Secure International Holding Limited (“CP Secure”), a privately-held provider of integrated network security solutions that protect organizations from Internet-originated web and email based malware threats.

On September 22, 2008, NETGEAR entered into an Asset Purchase Agreement with CP Secure and its stockholders to purchase certain intellectual property and other assets of CP Secure at a purchase price of up to $17.5 million based on the achievement of certain milestones. CP Secure’s integrated platform will be incorporated into NETGEAR’s new ProSecure™ line of products to provide organizations with robust and comprehensive protection for their network, web access and email traffic.

Through this acquisition, NETGEAR customers will benefit from:

* The integration of CP Secure’s patent-pending stream-based scanning technology which enables real-time scanning of high-volume web and e-mail traffic without degrading network performance, achieving up to five times better scanning performance than existing solutions.
* Proactive pattern based detection that allows NETGEAR to anticipate unknown and previously un-cataloged malware, spyware, and viruses.
* Distributed Spam Analysis architecture that uses an “in the cloud” approach to feed up-to-the-minute spam outbreak information to the appliance to stop SPAM.
* NETGEAR’s new ProSecure security appliances, based on CP Secure technology, deploy quickly and do not require reconfiguration of the network, mail servers or web proxies to operate.
* A new ProSecure line of products that will bring enterprise-level security features to the SMB market and provide a new level of ease of use to the category.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “We are pleased to announce the completion of the CP Secure acquisition. With this acquisition, we look forward to further strengthening our share in the high growth SMB market. CP Secure’s technology ensures that our customers are provided with the most integrated solutions to safeguard their networks and ensure their overall business continuity.”

With the completion of the asset acquisition, CP Secure’s 46 person engineering team will be integrated into the NETGEAR engineering organization under Shuang Ji, former Chief Executive Officer of CP Secure and NETGEAR’s new Vice President of Engineering for security products.