NETGEAR ® Deepens Asia-Pacific Presence through Distribution Agreement with Digital China, the Mainland’s Largest IT Distributor

Digital China to Promote NETGEAR’s Full Line of Products to World’s Largest Consumer Market

SANTA CLARA, Calif. — August 15, 2005 — NETGEAR®, Inc. (Nasdaq: NTGR), a worldwide provider of technologically advanced, branded networking products, has entered a distribution agreement with Digital China (HKSE: 0861), the largest IT products distributor and systems integrator in China. Through its network of over 6,000 resellers and agents in Asia’s largest market, Digital China will promote and sell NETGEAR’s full line of wired and wireless networking products to home users and customers in small and medium-sized businesses.

NETGEAR’s products already enjoy widespread popularity in China, due in large part to the company’s strong channel support program. Said Patrick Lo, NETGEAR’s chairman and CEO, “We’re proud to expand our partnership network within the Asia-Pacific region, especially with a distributor as experienced and omnipresent as Digital China. The PRC is already an important market for our affordable and innovative products, but this agreement will greatly increase our brand reach among Chinese consumers and businesses.”

“We’re very happy to add NETGEAR to the already distinguished list of American technology products we distribute in China, as their name is synonymous with easy-to-use networking devices,” said Wu Yao, vice president of Digital China. “NETGEAR’s commitment to providing reliable and secure products supports our own commitment to meeting the rigorous IT demands of customers. Our promotion of NETGEAR’s products to China’s growing population of Internet users will assuredly benefit both our companies.”

About Digital China Holdings Ltd.
Headquartered in Beijing, Digital China has regional offices in other major cities in China and a total workforce of 4,200 staff. According to IDC, Digital China is currently the largest IT products distributor and systems integrator in China. It distributes more than 1,100 product models including PCs, peripherals, software, and consumer IT products from Kodak, NEC, AMD, Oracle, Sun Microsystems, and Microsoft, through a network of over 6,000 resellers and agents across China. Digital China reported revenues of 1.8 billion U.S. dollars in its fiscal year 2004 (14.2 billion HK dollars). Digital China was spun off from Legend Group Limited in 2000, and separately listed on the Hong Kong Stock Exchange in 2001. For more information, please visit www.digitalchina.com.

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.

©2005 NETGEAR, Inc. NETGEAR and the NETGEAR logo 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.

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 the nature and scope of the distributor relationship between NETGEAR and Digital China, 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 NETGEAR and Digital China distributor relationship may not be successful in promoting NETGEAR’s products in China, 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 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 July 3, 2005, filed with the Securities and Exchange Commission on August 12, 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.

For more information:
Doug Hagan
Director, Corporate Marketing
NETGEAR, Inc.
(408) 907-8053
doug.hagan@netgear.com

Lisa Hawes
Account Supervisor
Sterling Communications
(408) 395-5500 x227
lhawes@sterlingpr.com