NETGEAR, Skype to Connect on Family of Innovative Products Including World’s First Skype WiFi Mobile Phone

Companies Debut Skype Wireless Mobile Phone at Consumer Electronics Show

LAS VEGAS — January 4, 2006 — NETGEAR®, Inc. (Nasdaq: NTGR), a worldwide provider of technologically advanced, branded networking products, and Skype®, the global Internet communications company, today announced they are working on a family of innovative new products, including the world’s first Skype wireless mobile telephone and a router equipped to optimize Skype.

The NETGEAR WiFi phone will make mobile Internet telephony a reality for Skype users. Unlike other devices that must connect with a PC, NETGEAR’s Skype WiFi phone will work wherever a consumer is connected to a wireless Internet access point — be that in a home, office, cafe, open public hotspot, or any open municipal wireless access point being deployed worldwide. The Skype experience remains the same, in that users can make free domestic and international calls, as well as host conference calls and chat, with other Skype users anywhere in the world, and to non-Skype users for a small fee. With this device, headphones or USB phones plugged into a laptop or PC are not required.

“Customers can now call anyone on Skype, anywhere in the world for free without using a PC anytime they are connected to WiFi. We’re extremely proud to deliver the world’s first mobile phone enabling customers to enjoy all the benefits of Skype,” said Patrick Lo, NETGEAR’s chairman and chief executive officer. “Moreover, Skype integration with our RangeMax wireless router will further extend our leadership in innovative networking devices. Skype offers the simplicity, WiFi offers the connectivity, and NETGEAR offers the technology to innovate these market-changing products. Our teamwork with Skype is yet another way that NETGEAR is helping people to connect, all around the world.”

An October report from Jupiter Research forecasts that by 2010, 20.4 million U.S. households will subscribe to some form of Internet-based broadband phone service, while In-Stat holds that widespread adoption of Internet calling in both the business and consumer markets depends on the availability of compatible wireless handsets (August 2005 report).

The NETGEAR device will combine the best of Internet calling and wireless. The NETGEAR phone is pre-loaded with Skype’s software, ready out-of-the-box to use with a wireless network. All a user needs to do after turning on the phone is enter a Skype username and password. The Skype software pulls up the user’s full contact list, displays the connection status on the phone screen, and allows the consumer to connect to any other Skype user for free. The phone will also allow users to connect to non-Skype users with the SkypeOut™ feature. More information on NETGEAR’s Skype WiFi phone, including pricing and availability, is planned for the first quarter of 2006.

“By collaborating with NETGEAR, Skype’s reach is extended to a new, important consumer platform. This new phone allows Skype to offer its global users improved mobility,” said James Bilefield, vice president of business development for Skype. “Simplicity and style were two qualities we looked for in a mobile phone and NETGEAR’s new device will offer both to Skype users.”

In addition to the Skype Wifi phone, NETGEAR and Skype also announced that the NETGEAR RangeMax Wireless Router (WPN824) with Smart MIMO technology, a 2006 CES Innovations Design and Engineering Award honoree and the industry’s #1 selling MIMO-G product, will be equipped to optimize Skype. Adapting to changing wireless conditions is unique to NETGEAR’s RangeMax technology, and RangeMax routers dynamically avoid interference from neighboring wireless networks and eliminate dead spots to maintain the most reliable, high-performance, long-range network connections to each client, making them ideal for supporting applications such as Skype.

NETGEAR and Skype are participating in the Consumer Electronics Show (CES) at the Las Vegas Convention Center through January 8. During CES NETGEAR will demonstrate the new WiFi Skype phone in Booth #36219 in the South Hall 4. Skype will be present in the eBay/Skype kiosk (A129) in the Grand Lobby of the Central Hall.

About Skype
Skype is the world’s fastest-growing service for Internet communication, allowing people everywhere to make unlimited voice and video calls for free. Skype is available in 27 languages and is used in almost every country around the world. Skype generates revenue through its premium service offerings such as making and receiving calls to and from landline and mobile phones, as well as voicemail and call forwarding services. Skype also has a growing network of hardware and software partners. Skype is an eBay company (NASDAQ: EBAY). To learn more visit skype.com.

Skype is not a telephony replacement service and cannot be used for emergency calling.

About NETGEAR, Inc.
NETGEAR® (Nasdaq: NTGR) designs technologically advanced, branded networking products that address the specific needs of small and medium business and home users. The Company’s product offerings enable users to share Internet access, peripherals, files, digital multimedia content and applications among multiple personal computers and other Internet-enabled devices. NETGEAR is headquartered in Santa Clara, Calif. For more information, visit the company’s Web site at www.netgear.com or call (408) 907-8000.

©2006 NETGEAR, Inc. NETGEAR®, the NETGEAR logo, and RangeMax are trademarks or registered trademarks of NETGEAR, Inc. in the United States and/or other countries. Other brand and product names are trademarks or registered trademarks of their respective holders. Information is subject to change without notice. All rights reserved.

NOTE: References to signal rates indicate maximum achievable rates under ideal operating conditions. Actual data throughput will vary. Network conditions and environmental factors, including volume of network traffic, building materials and construction, and network overhead, lower actual data throughput.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for NETGEAR, Inc.:
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning expected performance characteristics, specifications, market acceptance, market growth, specific uses, user feedback and market position of NETGEAR’s products and technology are forward-looking statements within the meaning of the Safe Harbor. These statements are based on management’s current expectations and are subject to certain risks and uncertainties, including, without limitation, the following: the actual price, performance and ease of use of NETGEAR’s products may not meet the price, performance and ease of use requirements of end-users; the performance of NETGEAR’s products may be adversely affected by real world network, environmental and operating conditions; the ability of NETGEAR to market and sell its products and technology; the impact and pricing of competing products; and the introduction of alternative technological solutions. Further information on potential risk factors that could affect NETGEAR and its business are detailed in the Company’s periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Risk Factors Affecting Future Results,” pages 19 through 28, in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 3, 2005, filed with the Securities and Exchange Commission on November 14, 2005. NETGEAR undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information

Doug Hagan

Director, Corporate Marketing

NETGEAR, Inc.

Contact via E-mail