NETGEAR Reports Second Quarter 2004 Results

July 29, 2004

Second quarter 2004 net revenue increased to $88.4 million; 28.1% year over year growth
Second quarter 2004 pro forma net income increased to $5.3 million, as compared to $2.2 in the comparable prior year quarter, 147% year over year growth
Second quarter 2004 pro forma diluted EPS of $0.17 as compared to $0.09 in the comparable prior year quarter, an 89% year over year growth.
Second quarter 2004 gross margin improved to 32.1% and pro forma operating margin to 8.9%

Company expects third quarter 2004 net revenue to be in the range of $98 million to $101 million, with pro forma operating margin in the range of 9.0% to 9.3%