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NETGEAR’s Layer 3 Power-Over-Ethernet Switch and ShoreTel’s Distributed VoIP System Combine To Provide Complete VoIP Solution Targeted at SMB Implementations

LAS VEGAS – May 10, 2004NETGEAR, Inc., (Nasdaq: NTGR) a worldwide provider of technologically advanced, branded networking products, and ShoreTel, Inc., the innovation leader in delivering IP telephony solutions to the enterprise, today announced that they have certified as interoperable NETGEAR’s FSM7326P Layer 3 24+2 Managed 10/100 Switch with Power-over-Ethernet (PoE) and the ShoreTel5 IP telephone system. The combined solution provides small and medium sized businesses (SMB) an affordable and easy to use solution for Voice over Internet Protocol (VoIP). The two companies will be demonstrating this interoperability at NETGEAR booth number 2817 at the Networld+Interop show in Las Vegas.

The combined solution leverages NETGEAR’s enterprise-class Layer 3 Power-over-Ethernet switch with ShoreTel’s distributed voice system and recently introduced family of IP telephones. NETGEAR’s FSM7326P Layer 3 Managed 10/100 IEEE 802.3af standard-based PoE switch simplifies the enterprise deployment of IP telephones by integrating Ethernet switching, quality-of-service, and the phone’s power supply. Up to 24 feature-rich ShorePhone IP business telephones are supported by each FSM7326P. Additional phones can be easily supported by adding additional switches.

The value, performance and reliability of NETGEAR’s networking solutions have made them one of the industry’s go-to providers of enterprise-class solutions for the SMB sector,” stated Jeff Ridley, director of product management, ShoreTel. “NETGEAR’s new affordable, easy-to-use FSM7326P will undoubtedly help drive widespread adoption of IP-based telephony in the growing SMB sector.”

Both NETGEAR and ShoreTel focus on delivering technologically advanced, cutting-edge products that provide enterprise-class functionality at prices affordable to small- and medium-sized businesses,” explained said Kevin Allan, NETGEAR’s director of product marketing and management for business products. “ShoreTel has a superb reputation for delivering a reliable, scalable, easy-to-manage and easy-to-use VoIP system, and the new ergonomically designed ShoreTel IP phones set new standards in ergonomics and sound quality. Together with ShoreTel, we’re enabling growing companies in the SMB sector to affordably adopt the latest in cost-saving IP-based telephony technology.”

NETGEAR FSM7326P 24+2 Layer 3 Managed 10/100 Switch with PoE

Affordable and reliable, the FSM7326P features 24 10/100 Mbps ports and two copper gigabit ports and is packed with robust routing, switching and quality-of-service (QoS) feature sets. Equipped with PoE capability, the value-packed FSM7326P can deliver both power and data over a single Ethernet cable. Utilizing its Layer 3 dynamic routing capabilities, small and medium businesses can off-load expensive routers and increase performance across network subnets. At less than per port, the FSM7326P delivers advanced capabilities to small and medium businesses at a breakthrough value.

Backed by a Limited Lifetime warranty, 24/7 technical support and optional premium support packages, the NETGEAR FSM7326P is available via value added resellers, direct marketers and e-commerce sites, at a street price of 50.

ShorePhone IP Telephones

ShoreTel’s unique IP phones meet the key requirement of an intuitive user interface, providing access to a rich feature set without complicating the user experience. In particular, a highly ergonomic and visually appealing design makes them easy to grip, view, and interact with while offering high fidelity sound in both handset and speaker phone mode. The base has a concave profile that puts the keypad and display at optimum angles, and the tactile rubber keys accommodate aggressive dialing.

ShoreTel IP phones come in three models, with the respective feature sets tailored to the needs of different categories of users:

· The IP 210 is a cost-effective model aimed at general users, offering a single line appearance and four function keys.

· The IP 530 is designed for the professional user, incorporating three line appearances, eight function keys, four soft keys, and an Ethernet switch.

· The IP 560 targets executives and assistants, providing six line appearances for users who handle high call volumes and share call flows with others.

About ShoreTel, Inc.
ShoreTel is the innovation leader in delivering IP telephony to the enterprise. The company has shipped its groundbreaking solutions since 1998 and continues to outpace the rapidly expanding VoIP market with technological advances and 100% year-over-year growth. ShoreTel voice systems are designed to make businesses smarter, setting new standards for usability and manageability while reducing telecommunications costs. A uniquely distributed architecture extends enterprise-class voice services to every office and outpost, keeping employees fully connected wherever they go. A select, worldwide group of channel partners provide top-notch service and support. For more information, visit http://www.shoretel.com or call 1-877-80SHORE.

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 suite of approximately 100 products enables 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.

©2004 NETGEAR, Inc. NETGEAR®, and the NETGEAR Logo are trademarks or registered trademarks of Netgear, Inc. in the United States and/or other countries. ShoreGear is a registered trademark and ShoreTel, ShoreTel5 and ShorePhone are trademarks of ShoreTel, 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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for NETGEAR, Inc.:

Various matters set forth in this press release, such as statements relating to the expected performance characteristics, specifications, market acceptance, market growth, specific uses and market position of NETGEAR, Inc. and its products and technology are forward-looking statements. These statements are subject to risks and uncertainties, including without limitation, the price/performance requirements of customers, the ability of NETGEAR to sell products incorporating the technology, the impact and pricing of competing technologies, the introduction of alternative technological solutions, and other risks detailed from time-to-time in NETGEAR'S SEC filings and reports.

For more information:

Doug Hagan Ken Hagihara

NETGEAR Inc. Integrity Public Relations

(408) 907-8053 (949) 768-4423

doug.hagan@netgear.com ken@integritypr.net

ShoreTel Press Contact:

Sacha Arts

Slider & Associates



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