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Corporate Overview

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NETGEAR, Inc. (Nasdaq: NTGR) designs, develops and markets technologically advanced, branded networking products that address the specific needs of small and medium businesses and home users. The Company supplies networking products that meet the ease-of-use, quality, reliability, performance and affordability requirements of these users. NETGEAR'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. These products are grouped into three major segments: Ethernet Networking, Broadband, and Wireless Networking, which include switches, adapters, and secure wired and wireless routers and gateways.

NETGEAR is focused solely on the networking needs of small and medium-sized business and home markets, and it has shipped over 17 million units. As a result of NETGEAR's brand name, the execution of its operating strategy and the growth in demand for networking products within small and medium businesses and homes, the Company has achieved net revenue growth each year since its inception in 1996.

NETGEAR's diverse global sales channel includes thousands of value added resellers (VARs), direct market resellers (DMRs) such as CDW, traditional retailers with over 3,900 retail locations in North America, including Best Buy, CompUSA, Office Depot and Staples, and over 2,500 international retail locations such as PC World in the United Kingdom and MediaMarkt in Germany, as well as online retailers such as Amazon.com and Buy.com. In addition, the Company sells its products through broadband service providers such as Time-Warner Cable and Comcast.

NETGEAR was incorporated in Delaware on January 8, 1996 as a wholly-owned subsidiary of Bay Networks, Inc. to focus exclusively on providing networking solutions for small businesses and homes. In August 1998, Nortel Networks NA Inc. purchased Bay Networks, and the NETGEAR remained a wholly-owned subsidiary of Nortel Networks until March 2000, when it sold a portion of its capital stock to a third party. In September 2000, Nortel Networks sold a portion of its ownership interest in NETGEAR to third parties. In February 2002, Nortel Networks sold all of its remaining ownership interest to NETGEAR in exchange for cash, non-cash consideration and a $20.0 million promissory note.